Benue Cement Company Plc -

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1 Benue Cement Company Plc - Driven by Efficiency July 23, 2010 Disclaimer Policy This publication is produced by FSDH Securities Limited (FSDH Sec) a subsidiary of First Securities Discount House Limited (FSDH) solely for the information of users who are expected to make their own investment decisions without undue reliance on any information or opinions contained herein. The opinions contained in the report should not be interpreted as an offer to sell, or a solicitation of any offer to buy any investment. FSDH Sec may invest substantially in securities of companies using information contained herein and may also perform or seek to perform investment services for companies mentioned herein. Whilst every care has been taken in preparing this document, no responsibility or liability is accepted by any member of FSDH for actions taken as a result of Information provided in this publication. FSDH Equity Research Report

2 1.0 Corporate Information 1.1 History: Benue Cement Company Plc (BCC) was incorporated as a limited liability company on July 16, 1975, after traces of limestone was discovered in Mbayion in Gboko Local Government area of Benue State in In 1972 the Federal Government of Nigeria (FGN) invited Cementia Holding AG of Zurich to undertake confirmative study for the establishment of a cement plant at Mbayion, Benue State. At incorporation of BCC, Cementia Holding AG of Zurich was responsible for the design and construction of the factory and acted as management partner. On August 15, 1980, the first bag of Lion Brand Portland Cement was dispatched. The plant was officially commissioned in 1981 with a rated capacity of 900,000 metric tones per annum. In 1990, BCC was privatized by the FGN and the company also underwent a capital restructuring and became known as Benue Cement Company Plc on March 27, Dangote Industries Limited (DIL) became the core investor in BCC in 2000 having acquired FGN s 65% majority equity in the company and effectively took over in January DIL appointed a new management which immediately embarked on a rehabilitation and expansion programme for the factory. In 2009, Dangote Industries Limited s holding 66.89% of the total shares and Aliko Dangote % of the total shares (2008: 9.14%) transferred their total holding of 74.77% to Obajana Cement Plc. No other individual held more than 5% of the issued share capital of the company as at December 31, BCC had an initial capacity of 900,000 metric tones but capacity utilization was less than 50%. In 2004, DIL embarked on an aggressive expansion and rehabilitation of the plant and radically transformed it into a socially responsible and world class cement manufacturing company with a production capacity of 1,500 metric tonnes per day. In December 2009, following a major rehabilitation project, the BCC is now one of the largest cement plants in Nigeria, with plans to further increase production. It upgraded its installed production capacity to 2.8 million metric tonnes per annum. In the first half of 2008 BCC commissioned the first of its two new kiln lines. The second kiln was commissioned in the second half of 2008 and both kilns are fully operational. BCC plans to further increase production capacity to 3mnt per annum. The company s major markets cut across the South East, Federal Capital Territory (FCT) Abuja and some states in Northern Nigeria. In 2009, BCC commissioned the installation of 60mn litres tank farm for the storage of fuel required for the firing of the kilns and power generation. It is intended that this investment will ensure adequate supply of fuel to the plant for approximately 90 days. In addition, it has commenced the process of using coal as an alternative fuel for the firing of the kilns in view of the rising cost of fuel oil. 1.2 Business: BCC s principal activities are the production and sale of portland cement. The company s significant major suppliers are: Man Diesel, India; FLSmidth, Denmark; Ventomatic SP, Italy; Grand foundry & Engineering Company Limited; Dangote Agro Sacks Plc; TOTAL Nigeria Plc and Oando Plc. The company was granted a Pioneer Status for a period of 3years with effect from January 01, The company is therefore exempted from payment of income tax in respect of profits accruing from manufacturing and sale of cement during the period to December 31, Fair Value (N) Current Price (N) Recommendation BUY Table 1: Professional Parties Party Afribank Registrars Limited BDO Oyediran, Falaye, Oke & Co Table 2: Company Summary Role Registrar Auditors Ticker BCC Sector Building Materials Date of Incorporation July 16, 1975 Date of Listing April 8, 1991 Financial Year End December Number of Fully Paid Shares 3,915,527,344 Current Capitalization (N) 242,841,067, NSE Capitalization (N) 6,127,812,952, % of NSE Capitalization Week High (N) week Low (N) YTD Return (%) Weeks Volume Traded 829,600 Trailing EPS (N) 3.67 Trailing P/E ratio (x) Beta Value 0.75 Table 3: Company Summary as at March 31, 2010 Names Position Holding Alhaji Aliko Dangote Chairman 49,359,339 Mr. Shree N. Junnarkar Vice Chairman Nil Mr. Olakunle Alake Mgr. Director/CEO 6,911,171 Mr. D.V.G. Edwin Deputy MD/COO Nil Mr. Olusegun Olusanya Non Ex-Director 29,661 Engr. (Chief) Isaac Wakombo Non Ex-Director 12,500 Col. Basil Kwembeh (Rtd) Non Ex-Director Nil Chief David Attah Non Ex-Director Nil Senator John Wash Pam Non Ex-Director Nil Chief E.K. Ashiekaa Non Ex-Director 29,661 Sources: Annual Accounts of BCC, NSE Fact Book, NBS, CBN, Company s Web Site and FSDH Research 2 P a g e

3 2.0 Review of Nigerian Economy Provisional data from the National Bureau of Statistics (NBS) indicated that Nigeria s Gross Domestic Product (GDP) grew by 7.23% as at Q Overall the Nigerian economy was relatively stable with mixed outcomes. According to the CBN in HY1, 2010 growth rates in major monetary aggregates were below targets. In particular, the growth in credit to the private sector slowed significantly. Also, inflation rate (year-on-year) moderated substantially, but it remained at double digit at the end of 2009 and stood at 10.30% as at June 30, The exchange rate, which remained volatile in 2009, remained stable in HY1, Interest rates, particularly, inter-bank rates which rose for most part of 2009 as a fall out of the global economic and financial crisis has moderated considerably in the face of huge liquidity in the inter-bank market and quantitative easing strategy of the Central Bank of Nigeria (CBN) to salvage the banking system from an imminent collapse. However, the reluctance of banks to extend credit to the private sector remains a big threat to domestic real sector. Thus, the resolution of the credit crisis will help to boost economic growth in the domestic economy. We reiterate the need for the nation s economic managers to implement policies that can lay a solid foundation for the economy in the medium to long run especially in the area of agriculture and manufacturing in order to broaden the revenue base of the country. The President, Goodluck Jonathan appears to be determined in laying a strong foundation to overcome the problem in the power (electricity) industry by bringing the sector under his office. The outlook of the foreign exchange rate in the medium term appears stable as the CBN is determined to meet all genuine demand for foreign exchange. In addition, the current foreign reserves level of US$37.42bn as at June 2010 is sufficient to cover 16 months of imports against the international acceptable level of 3 months. We believe that the current administration would implement a number of policies to diversify the productive base of the economy so that the economy is less vulnerable to international oil price volatility. Furthermore, the new administration is embarking on a number of reform agenda to stimulate the economy and strengthen public expenditure management especially in job creation. 3.0 Overview of the Nigerian Cement Industry Nigerian economy is highly reliant on cement for the development of basic infrastructure such as roads, water supply, hospitals, schools, houses and ports. Although, the domestic demand for cement in Nigeria has been expanding rapidly, local production has continued to fall short of the demand by at least 33% due to critical production input constraints, including unsustainable energy source. However most of the local producers are currently investing in capacity expansion in order to bridge the supply gap in the industry. Over 90% of cement sold is bagged, while the rest is bulkdistributed, with roads being the primary mode of transport. As a result of this, each cement producer has regional catchment area in Nigeria. Although, raw materials needed in cement production are abundant in Nigeria, the industry entry barriers are very high. The cost of plant construction is largely determined by the state of the local infrastructure. Each manufacturer provides its own power generation at the plant, which further pushes up the cost per tonne of output. The poor state of infrastructure continues to be the bane of the industry high cost of power, fuel, transportation and water security incurred by manufacturers add to the cost of production and therefore push the price of cement up. The pricing system in the Nigerian market is that imported cement, bagged at the port, costs almost the same as locally produced bagged cement. The ex-factory price for a bag of cement, according to industry players, is approximately the same as that of imported cement. The Nigerian cement industry consists of five main producers namely Lafarge WAPCO, Obajana Cement Limited (Obajana Cement), Benue Cement Company (BCC) Plc, Cement Company of Northern Nigeria (CCNN), and Ashaka Cement Company (AshakaCem) Plc. The Lafarge Group, with majority stakes in Lafarge WAPCO (2.2mnt) and Ashaka Cement Company (0.8mnt) has an estimated 30% share of the market, Its main rival in locally produced cement, the Dangote Group, which is a majority stakeholder in Obajana Cement (with capacity of 5.5mnt) and Benue Cement (with capacity of (2.8mnt)) has an estimated 50% share of the Nigerian cement market. Cement Company of Northern Nigeria (CCNN) has estimated production capacity of approximately 0.5mnt. In a bid to promote cement self-sufficiency in Nigeria, boost local production and create jobs, the Federal Government of Nigeria banned the importation of bagged cement in Cement therefore was imported in bulk only, with import quotas granted in proportion to company s existing cement production capacity and planned investment in local cement manufacturing. Although, government s regulatory efforts have yielded some results over the years as local production capacity has increased from 2.25mnt in 2003 to 10mnt in 2009 and anticpated to increase to about 28mnt by 2011, the goal of achieving self-sufficiency in cement is yet to be achieved. Cement shortage has continued to linger primarily because of increased local demand for cement. The demand for cement in Nigeria is estimated at about 14.85mnt and is expected to grow by about 10% yearly in the medium term. The total production by all the local producers is estimated at 10mnt, leading to a supply shortage of 4.85mnt, which is currently being met through importation. If the target of 28mnt is attained in 2011, Nigeria may be positioned to meet local demand as well as export to neighbouring countries. The review of the industry reveals that there exists opportunities for local producers who have capacity to drive volume. 4.0 Strategic Focus BCC s strategic focus is continuous development of its product lines, developing its employees through personal and professional development and their work environment. The company also plays a significant role in the development of its host communities. It is involved in education, health and electricity generation to its host communities. 3 P a g e

4 To enhance the availability of its products, BCC commissioned the installation of 60mn litres tank farm for the storage of fuel required for the firing of the kilns and power generation. It is intended that this investment will ensure adequate supply of fuel to the plant for approximately 90 days. In addition, it has commenced the process of using coal as an alternative fuel for the firing of the kilns in view of the rising cost of fuel oil. In December 2009, following a major rehabilitation project, the BCC is now one of the largest cement plants in Nigeria, with plans to further increase production. It recently upgraded its installed production capacity to 2.8 million tonnes per annum. In the first half of 2008 BCC commissioned the first of its two new kiln lines. The second kiln was commissioned in the second half of 2008 and both kilns are now fully operational. BCC plans to further increase production capacity to 3mnt per annum. 6.0 Analysis & Recommendation 6.1 Capital Structure Total shareholders fund of BCC grew from N13.75bn in 2008 to N24.21bn in 2009, translating to an increase of 76.05% between the period. The increase in total shareholders fund was primarily driven by % growth in general reserve from N4.25bn in 2008 to N14.71bn in This was on account of good profitability which increased the retained earnings of the company for the period. The long term assets of BCC stood at N40.46bn in 2009, down from N41.95bn in 2008, representing a decline of 3.56%. The company s social responsibility to its host communities include Construction of sewage treatment plants at its factory estate and premises to ensure effluent emitted through its operations is dealt with responsibly. This will benefit over 5,000 people in the affected communities. An electricity extension project to one of its host communities (Gyura) and surrounding communities which is due for commission in Q Completion of 21 borehole projects to provide further access to water for various host communities. BCC has also rebranded its product Lion Portland Cement to Dangote Cement in line with the company s brand management and marketing strategy. 5.0 Strengths & Opportunities Strong cement demand Huge housing deficits in Nigeria Migration to low cost energy alternative Supportive government policy Regional market leader Expanding capacity to capture more markets Viable markets in neighbouring countries The current assets which increased significantly by % to N10.41bn in 2009 from N2.17bn in 2008 was due to the increase other debtors & payments, which increased by 1,578.70% to N3.51bn, Cash and bank balances, which increased by % to N3.92bn and stock, which increased by % to N952.22mn. Stocks comprise of raw materials, work-in-progress, finished goods and engineering & consumable stores in the proportion 46.31%, 12.59%, 9.42% and 52.84%, respectively. Adding the long term assets and the current assets of the company together, the total assets grew by 15.28% to N50.87bn in 2009 from N44.13bn in 2008 and represent a CAGR of 26.63% between 2005 and Weaknesses & Threats Credit crunch in the local financial market leading to rising interest rates Inadequate physical infrastructure in the country Industry may experience a glut The total assets of BCC were financed by a mix of equity and liabilities in the proportion of 47.59% and 52.41%. As at December 2009, the total assets of BCC stood at N50.87bn while total liabilities stood at N26.66bn. 4 P a g e

5 The short term liabilities stood at N25.96bn, accounting for 97.37% of the total liabilities while the long-term liabilities stood at N701.15mn accounting for 2.63% of the total liabilities. The long term liabilities are made up of deferred taxation and staff gratuity. The company has no interest bearing long term liabilities as at December 31, The net cash generated from operating activities decreased by 11.87% from N20bn in 2008 to N17.63bn in Net cash used for investing activities decreased by 83.06% from N10.49bn in 2008 to N1.78bn in 2009, while the net cash used in financing activities increased by 83% from N6.51bn in 2008 to N11.92bn in The net increase in cash & cash equivalents in 2009 stood at N3.93bn, an increase of 30.98% over N3bn in 2008.The cash and cash equivalent as at December 31, 2009 stood at N3.92bn, representing an increase of 34,837.9% from a negative N11.23mn in Profitability The current assets of the company as at 2009 were lower than the current liabilities leading to a negative working capital. The working capital stood at a negative N15.55bn at the end of December 2009, an improvement of 43.49% from a negative N27.51mn as at the end of the previous year. Consequently, the current ratio and the quick ratio as at December, 2009 stood at 0.40x and 0.36x respectively. This is considered too low as the company may not be able to meet its current liabilities as at when due. The company recorded an impressive performance in the period under review despite the unfavorable macroeconomic environment. Its Turnover increased from N4.01bn in 2005 to N35.01bn in 2009, representing a CAGR of 71.95% and increased significantly by % between 2008 and In a similar development, the cement dispatched increased by 109% to 1.37mnt in 2009 over This represents about 48.93% of installed capacity. The capital employed (i.e total assets less current liabilities) increased from a negative N349.64mn in 2005 to a positive position of N24.91bn in 2009 and achieved a growth of 72.49% between 2008 and The debt ratio, which is the proportion of the company s total assets that is financed by long term and short term liabilities decreased to 51.03% from 67.36% in Liquidity The current assets of BCC increased from N1.95bn in 2005 to N10.41bn in 2009, representing a Compound Annual Growth Rate (CAGR) of 52.06% and a significant growth of % between 2008 and In another development, the current liabilities increased from N20.13bn in 2005 to N25.96bn in 2009, representing a CAGR of 6.56% between the period and a decrease of 12.55% between 2008 and The relationship between the current assets and current liabilities reflects a more proportionate increase in current assets than growth in current liabilities, which is equally reflected in the current ratio and quick ratio between 2008 and The current ratio increased to 0.40x in 2009 from 0.07x in In a similar development, the quick ratio increased to 0.36x in 2009 from 0.06x in The cost of sales increased by 61.17% from N8.25bn in 2008 to N13.30bn in 2009, lower than the growth in the turnover, thereby leading to an improvement of % in Gross Profit (GP) from N8.20bn in 2008 to N21.71bn in The Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), increased by % from N7.64bn in 2008 to N19.40bn in 2009, while Earnings Before Interest and Tax (EBIT) increased by 174% from N5.95bn in 2008 to N16.31bn in BCC s growth was impressive despite the limitation imposed by the poor state of infrastructure (power and energy) in the country. Profit Before Tax (PBT) recorded a significant growth of % between 2008 and 2009 and a CAGR of 58.10% between 2005 and PAT stood at N14.37bn in 2009 from N4.14bn in 2008, representing a CAGR of 59.09%. 5 P a g e

6 The return on equity stood at 59.37% in 2009, up from 30.14% in Also, the return on assets stood at 32.06%, an increase from 13.49% recorded in Return on Capital Employed (ROCE) increased from 41.21% in 2008 to 65.47% in BCC s GP margin increased to 62.01% in 2009 from 49.85% in EBITDA margin and PBT margin increased to 55.41% and 41.23% in 2009 from 49.85% and 46.41% in 2008 respectively. The contribution of staff to the company s profitability increased between 2009 and 2008, as PBT per staff increased to N16.86mn in 2009 from N5.26mn in 2008, while staff cost per staff decreased marginally from N0.97mn in 2008 to N0.81mn in Management Efficiency The number of times capital employed could generate revenue increased marginally from 1.14x in 2008 to 1.41x in This is an improvement and commendable given the hostile operating environment in which the company carries out its activities. We expect the ratio to further improve following the current effort of the FGN to improve infrastructure in the country, in addition to the initiatives of the company to address some of these challenges. BCC s average collection period stood at 8.21 days in 2009 from 0.64 days in 2008 while the payment period decreased to days in 2009 from days in 2008.The company needs to put in place measures to reduce payment period in order to continue to enjoy adequate and moderate prices from its suppliers. Looking at the historical performance of BCC, we note that it has consistently deployed its assets to generate enough revenue to reward the equity holders. In other words, the risk of generating inadequate cash flow to meet interest expenses is minimized. As at 2009, the company has no interest bearing liabilities in its capital structure. Going forward we believe the company should introduce some debts into its capital structure in order to take advantage of the tax shield from the use of debt. 6.5 Investment Analysis The performance of BCC in the last five years has been impressive despite the harsh operating environment the company operates. The Earnings Per Share (EPS) improved significantly by % from N1.32 in 2008 to N3.67 in The company paid a dividend of N1.00k to its shareholders whose names were in the register of members as at April 23, 2010 for the year ended December 31, This is in addition to the interim dividend of N1.00 paid for the FY The net assets per share (NAPS) also increased from a negative N2.74 in 2005 to positive of N6.18 in 2009 and grew by 40.84% between 2008 and Value Added Distribution The wealth created by the efforts of the company s employees stood at N20.26bn in 2009, up from N8.65bn in 2008, representing a growth of %. The value added was distributed amongst employees, government, investors, asset replacement and for company s expansion in the proportion of 3.44%, 0.31%, , 16.13% and 51.58% respectively. Distribution of Value Added % 16.13% 3.44% 28.54% 0.31% Employees Government Loan Creditors Asset Replacement Retained Profit 6.7 Historical Return Analysis An analysis of the historical return on the investment in the Ordinary Shares of BCC between January 2005 and the date of this report was good. The total return during the period was made up of bonus issue and dividend payment that the investors enjoyed on their investments. Our illustration using N100,000 initial investment in January 2005 grew to N1,910, as a result of bonus earned and dividend earned. This resulted in a profit of N1,810,309.57, a return of 1,810.31% and a CAGR of 69.99%. The number of shares the initial investment bought, net of transaction costs, was 23,658 units. The total dividend earned during the period was N53,895.88, while bonus issue during the period was 6,284. The share price appreciated by 1,412.2% from N4.10 in 2005 to N62.00 as at the time of this report. 6.8 Valuation In arriving at a fair value for the Ordinary Shares of BCC, we used two valuation methods which are Discounted Future Earnings Method (DFE) and Discounted Free Cash Flow Method (DCF). We project Turnover, Earnings Before Interest and Tax (EBIT), Earnings Before Interest Tax Depreciation and Amortization (EBITDA), Profit After Tax (PAT) and Dividend Payment for the periods ending December 2010, 2011, 2012, 2013 and We estimate the Turnover of N52.52bn, N70.90bn, N88.62bn, N106.35bn and N127.62bn for 2010, 2011, 2012, 2013 and 2014 respectively. We estimate EBIT of N24.19bn, N32.66bn, N40.82bn, N48.99bn and N49.13bn for 2010, 2011, 2012, 2013 and 2014, respectively, based on EBIT Margin of 46.06% for and 38.50% for We estimate EBITDA of N27.64bn, N36.19bn, N44.43bn, N52.66bn and N52.88bn for the same respectively. 6 P a g e

7 We project a FCF of N26.12bn, N35.46bn, N30.88bn, N36.51bn and N36.67bn, PAT of N21.56bn, N29.11bn, N24.87bn, N29.84bn and N30.58bn and Dividend Payment of N11.75bn, N15.86bn, N13.55bn, N16.26bn and N16.66bn for 2010, 2011, 2012, 2013 and 2014 respectively, based on a dividend payout of 54% from its earnings. We applied a terminal growth rate of 7.23%. We used a beta value of 0.75x based on the 5-year historical returns on the company share price and the Nigerian Stock Exchange All Share Index (NSE ASI). We used the marginal rate of 8.85% as our risk free rate and a market risk premium of 10.04%. Applying foregoing parameters on the Capital Asset Pricing Model (CAPM), the cost of equity generates 16.42%, which is our cost of capital. The company has no debt in its capital structure as at the date of the valuation. We used 3.91bn shares in issue. The DFE Model generates N64.99 per share and the DCF Model generates N78.38 per share. Applying a weight of 45% to the DFE and 55% to the DCF, we arrive at a value of N72.35 per share, which is our fair value. The 2010 forward earnings yield based on our fair value generates 7.61%, while the 2010 forward Dividend Yield based on N3.00 Dividend Per Share at our fair value generates 4.15%. We therefore place a BUY on BCC shares at the current market price for both dividend payment and capital appreciation. 7 P a g e

8 Table 5: Key Profit & Loss Account Items ( ), N mn Change (%) CAGR (%) Turnover 35,012 16, ,473 6,029 4, Cost of Sales 13,300 8, ,062 3,071 1, Gross Profit 21,712 8, ,457 2,959 2, EBIT 16,308 5, ,885 1,918 1, EBITDA 19,398 7, ,918 2,185 1, PBT 14,436 4, ,870 3,861 2, Tax (89.29) (1.40) PAT 14,373 4, ,252 3,105 2, Long Term Assets 40,456 41,951 (3.56) 33,458 25,223 17, Current Assets 10,414 2, ,303 3,887 1, Total Assets 50,870 44, ,761 29,110 19, Current Liabilities 25,960 29,684 (12.55) 26,612 14,946 20, Long Term Liabilities ,809 1,005 (8.61) Total Liabilities 26,661 30,374 (12.22) 27,154 20,755 21, Working Capital (15,546) (27,509) (43.49) (23,309) (11,059) (18,184) - Shareholders Fund 24,209 13, ,607 8,355 (1,355) - Key Financial Ratio ( ) Gross Profit Margin (%) EBITDA Margin (%) PBT Margin (%) ROE (%) (165.62) ROCE (%) (448.66) Inventory Turnover Current Ratio (x) Debt Ratio(%) Interest Cover (x) Return on Assets EPS(N) DPS(N) Net Asset Per Share(N) (2.74) 8 P a g e

9 Table 6: Earnings Forecast for BCC ( ) Turnover (N mn) 52,518 70,899 88, , ,619 EBIT(N mn) 24,191 32,658 40,822 48,987 49,133 EBITDA (N mn) 27,638 36,193 44,428 52,662 52,879 PBT(N mn) 21,636 29,208 36,570 43,884 44,964 Tax(N mn) ,063 15,676 15,723 PAT(N mn) 21,559 29,105 24,868 29,841 30,575 Dividend Payment (N mn) 11,749 15,861 13,552 16,262 16,662 EBIT Margin(%) EBITDA Margin(%) PBT Margin(%) PAT Margin(%) EPS(N) DPS(N) Earnings Yield(%) Dividend Yield(%) P/E Ratio(x) Number of Shares(mn) 3, , , , , Dividend Payout(%) Table 7:Annual Capital Growth & Returns Analysis of N100,000 Investment in BCC since January 04, Total Holding As At January 23,658 23,658 23,658 26,615 29,942 29,942 - Bonus Shares Received - - 2,957 3, , Cumulated Holding 23,658 23,658 26,615 29,942 29,942 29,942 29,942 Dividend Earned ,948 26,948 53, Date of Valuation Accumulated Shareholding 29,942 Increase in Shareholding (%) Price (N) Market Value (N) 1,856, Total Dividend (N) 53, Value of Investment (N) 1,910, Cost of Investment (N) 100, Profit (N) 1,810, % Increase 1, CAGR P a g e

10 Table 8: Comparative Analysis 2009 Company BCC WAPCO ASHAKACEM CCNN Turnover (N mn) 35,012 45,490 17,194 11,869 Gross Profit (N mn) 13,300 13,501 11,770 5,164 EBITDA (N mn) 19,398 9,853 2,316 2,333 PBT (N mn) 14,436 9,237 2,366 2,317 PAT (N mn) 14,373 5, ,812 Total Assets (N mn) 50,870 87,163 25,619 9,804 Current Liabilities (N mn) 25,960 10,674 9,648 4,327 Long Term Liabilities (N mn) ,489 2,829 1,259 Interest Bearing Liabilities - 24, Working Capital (N mn) (15,546) 6,748 (3,096) 459 Capital Employed (N mn) 24,910 16,489 15,970 5,477 Net Assets (N mn) 24,209 43,711 13,142 4,218 EBITDA Margin(%) Debt Ratio(%) Contact: For enquiries please contact us at our offices: Lagos Office: UAC House (6 th -8 th Floors) 1/5 Odunlami Street, P.M.B Lagos. (Tel.) (Fax) Port Harcourt Office: Afribank Bank Building (2nd floor, 5 Trans Amadi Road, Port Harcourt.(Tel) (Fax) Abuja Office: Orji Uzor Kalu Plaza, Plot 979, 1st Avenue, Off Ahmadu Bello Way, Cadastral Zone AO, Central Business District, Abuja.(Tel) (Website): fsdhsecurities@fsdhgroup.com Disclaimer Policy This publication is produced by FSDH Securities (FSDH Sec) a subsidiary of First Securities Discount House Limited (FSDH) solely for the information of users who are expected to make their own investment decisions without undue reliance on any information or opinions contained herein. The opinions contained in the report should not be interpreted as an offer to sell, or a solicitation of any offer to buy any investment. FSDH Sec may invest substantially in securities of companies using information contained herein and may also perform or seek to perform investment services for companies mentioned herein. Whilst every care has been taken in preparing this document, no responsibility or liability is accepted by any member of FSDH or FSDH Sec. for actions taken as a result of information provided in this publication. 10 P a g e