Group Financials RED STAR EXPRESS PLC

Transcription

1 Group Financials RED STAR EXPRESS PLC UNAUDITED FINANCIAL REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2017

2 UNAUDITED FINANCIAL HIGHLIGHTS FOR THE PERIOD ENDED 30TH SEPTEMBER, 2017 MAJOR STATEMENT OF COMPREHENSIVE INCOME ITEMS THE GROUP Current Period Comparative Period Interim Period Year to Date Interim Period Year to Date Jul'17 - Sept'17 Apr'17 - Sept'17 Jul'16 - Sept'16 Apr'16 - Sept'16 TURNOVER 2,057,264 4,102,101 1,659,064 3,255,684 PROFIT BEFORE TAX 147, , , ,901 PROFIT AFTER TAX 100, ,710 73, ,973 THE COMPANY Current Period Comparative Period Interim Period Year to Date Interim Period Year to Date Jul'17 - Sept'17 Apr'17 - Sept'17 Jul'16 - Sept'16 Apr'16 - Sept'16 TURNOVER 1,042,542 2,078, ,395 1,818,175 PROFIT BEFORE TAX 67, ,741 30, ,376 PROFIT AFTER TAX 45, ,224 20,012 76,416 MAJOR STATEMENT OF FINANCIAL POSITION ITEMS THE GROUP THE COMPANY SEPT MARCH SEPT MARCH N' 000 N' 000 N' 000 N' 000 TOTAL ASSETS 4,739,069 4,431,557 3,495,795 3,394,317 SHAREHOLDERS FUND 2,416,959 2,432,048 1,660,464 1,791,039 SHARE CAPITAL 294, , , ,748 SHARE PREMIUM 296, , , ,433 REVENUE RESERVE 1,825,778 1,840,867 1,069,283 1,199,858 INFORMATION PER 50 KOBO ORDINARY SHARE THE GROUP THE COMPANY SEPT MARCH SEPT MARCH N' 000 N' 000 N' 000 N' 000 NO OF ORDINARY SHARES 589, , , ,497 NET ASSET (N) 2,416,959 2,432,048 1,660,465 1,791,039 EARNINGS PER SHARE (KOBO) NET ASSET PER SHARE(KOBO)

3 UNAUDITED CONSOLIDATED AND SEPARATE STATEMENT OF FINANCIAL POSITION AS AT 30TH SEPTEMBER, SEPT MARCH SEPT MARCH Note N'000 N'000 N'000 ASSETS Non Current Assets Property, plant and equipments 7 1,300,028 1,150, , ,030 Intangible Assets 7 34,046 18,172 34,046 18,168 Long Term Prepayments 12 24,468 22,968 25,968 24,468 Financial Assets Available for Sale Investment in subsidiary 374, ,065 Deposit for shares Employee Benefit asset Total Non Current Assets 1,359,019 1,191,849 1,056, ,208 Current Assets Inventories 9 43,459 47,356 38,849 43,494 Trade debtors 10 1,752,636 1,887,381 1,012,736 1,137,594 Current prepayments , , , ,732 Other receivables , , , ,370 Due from related company , ,455 Cash and cash equivalents , , , ,464 Total Current Assets 3,380,050 3,239,708 2,438,933 2,494,109 TOTAL ASSETS 4,739,069 4,431,557 3,495,795 3,394,317 EQUITY AND LIABILITIES LIABILITIES Non-current liabilities Deferred taxation , ,623 33,283 33,283 Provision for liabilities and charges Finance Lease Obligation 133,778 48,903 Employee Benefit Liabilities 50,891 49,176 52,612 49,176 Total Non Current Liabilities 335, ,702 85,895 82,459 Current liabilities Trade creditors 217, , , ,178 Other creditors and accruals 14 1,486,313 1,286,186 1,096, ,945 Due to related companies , ,279 Term loan: Falling due within 12 Months (finance lease) 34,637 18,077 - Income tax liabilities 6 248, , , ,418 Total Current Liabilities 1,986,818 1,750,807 1,749,435 1,520,820 TOTAL LIABILITIES 2,322,110 1,999,509 1,835,330 1,603,279 Equity Share capital 294, , , ,748 Share premium 296, , , ,433 General reserve 1,825,778 1,840,867 1,069,283 1,199,858 Total Equity 2,416,959 2,432,048 1,660,464 1,791,039 TOTAL EQUITY AND LIABILITIES 4,739,069 4,431,557 3,495,795 3,394,317 This consolidated financial statements were approved by the Board of Directors on 26th October 2017 and signed on its behalf by: Sola Obabori Group Managing Director FRC/2016/IODN/ Babura Auwalu Badamasi Chief Financial Officer FRC/2016/ICAN/

4 CONSOLIDATED AND SEPARATE STATEMENT OF COMPREHENSIVE INCOME Current Period Comparative Period Current Period Comparative Period Note Interim Period Year to Date Interim Period Year to Date Interim Period Year to Date Interim Period Year to Date Jul'17 - Sept'17 Apr'17 - Sept'17 Jul'16 - Sept'16Apr'16 - Sept'16 Jul'17 - Sept'1 Apr'17 - Sept'17 Jul'16 - Sept'16 Apr'16 - Sept'16 Turnover 1 2,057,264 4,102,101 1,659,064 3,255,684 1,042,542 2,078, ,395 1,818,175 Cost of sales 3 (1,529,545) (2,996,438) (1,202,900) (2,276,218) (737,368) (1,435,432) (646,114) (1,226,118) Gross profit 527,719 1,105, , , , , , ,057 Other income 2 2,713 3,552 4,167 7, , , ,431 1,109, , , , , , ,751 Administarative and Other Operating Ex 3 (359,999) (731,790) (329,838) (667,664) (225,995) (454,828) (219,305) (449,628) Staff Gratuity 4 (3,833) (9,059) (4,005) (10,303) (3,013) (6,027) (3,014) (6,898) Depreciation & Amortisation 5 (17,494) (45,383) (17,643) (33,999) (15,443) (40,640) (16,335) (30,952) Impairement Loss Effect of change in estimate useful life of PPE Total operating Expences (381,326) (786,233) (351,486) (711,966) (244,452) (501,495) (238,653) (487,477) Finance Income 6,451 12,573 3,539 5,402 6,303 12,149 3,239 5,102 Finance Costs (7,579) (10,983) (1,187) (2,905) Net Finance Costs (1,127) 1,590 2,352 2,497 6,303 12,149 3,239 5,102 Profit Before interest and Tax 147, , , ,901 67, ,741 30, ,376 Interest and similar charges Provision for diminution in investments Profit Before Income Tax 147, , , ,901 67, ,741 30, ,376 Income Tax 6 (47,353) (103,863) (37,842) (88,928) (21,607) (49,517) (10,855) (35,960) Profit from continuing operation 100, ,710 73, ,973 45, ,224 20,012 76,416 Profit attributable to: Owners of the company 100, ,710 73, ,973 45, ,224 20,012 76,416 Non controlling Interests Profit for the period 100, ,710 73, ,973 45, ,224 20,012 76,416 Earnings per share Basic earnings per share (kobo) Diluted earnings per share (kobo) Number of ordinary shares in issue , , , , , , , ,497

5 CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY SEPT SEPT SEPT SEPT SHARE CAPITAL Authorised 1,000,000,000 ordinary shares of 50 kobo each 500, , , ,000 Issued and fully paid 589,496,760 ordinary shares of 50 kobo each 294, , , ,748 GENERAL RESERVE At the beginning of the year 1,840,867 1,620,862 1,199,858 1,091,932 Profit for the period 220, , ,224 76,415 Other comprehensive Income Transfer to RSE Foundation Acturial Loss on defined benefit plan - Prior year adjustment (uncaptured) - Dividend declared (235,799) (206,324) (235,799) (206,324) At the end of the year 1,825,778 1,603,511 1,069, ,023

6 CONSOLIDATED AND SEPARATE STATEMENT OF CASH FLOWS GROUP THE COMPANY NOTE SEPT SEPT SEPT SEPT N N N N Cash flows from operating activities: Cash receipts from customers 3,886,118 3,189,679 1,905,212 1,898,368 Payment to suppliers and employees (3,362,590) (2,681,932) (1,691,119) (1,657,500) VAT (NET) (71,359) (51,726) (51,653) (39,591) Taxes paid (62,107) - (72,628) - (11,180) - (28,045) - Net cash provided by operating activities 390, , , ,231 Cash flows from investing activities: Interest received 12,573 5,402 12,149 5,102 Dividend received Proceeds from sale of PPE - 5,942-5,942 Purchase of Intengible assets (21,984) (13,898) (21,984) (13,898) Acquisition of PPE (291,005) (299,723) (111,325) (126,333) Increase in investment Net cash provided by investing activities (300,416) (302,277) (121,160) (129,187) Cash flows from financing activities: Proceeds from issue of share capital Proceeds from Long term burrowings Proceeds of Share premium Term Loan repayment 16,560 (19,208) - - Interest Paid (10,983) (2,905) - - Dividend paid (216,270) (185,691) (216,270) (185,691) Net cash provided by financing activities (210,693) (207,804) (216,270) (185,691) Net (decrease)/increase in cash and cash equivalents (121,048) (126,688) (186,170) (141,648) Cash and cash equivalents at the beginning of the year 513, , , ,068 Cash and cash equivalents at the end of the year 392, , , ,420

7 Notes to the Consolidated Financial Statement 1 TURNOVER Current Period Comparative Period Current Period Comparative Period Interim Interim Interim Period Year to Date Interim Period Year to Date Period Year to Date Period Year to Date Jul'17 - Sept'17 Apr'17 - Sept'17 Jul'16 - Sept'16 Apr'16 - Sept'16 Jul'17 - Sept'1 Apr'17 - Sept'17 Jul'16 - Sept'1 Apr'16 - Sept'16 Courier 1,042,542 2,078, ,395 1,818,175 1,042,542 2,078, ,395 1,818,175 Logistics 421, , , ,979 Freight 178, , , ,445 Support Service 415, , , ,085 2 OTHER OPERATING INCOME 2,057,264 4,102,101 1,659,064 3,255,684 1,042,542 2,078, ,395 1,818,175 a. Other Income Insurance Claim 1,165 1, , Profit on Disposals of fixed Assets Exchange gain - - 2,614 2, Other Sundry income 1,148 1, , Bad debt recovered , ,800 Rent ,713 3,552 4,167 7, ,012 1,092 2,694 b. Investment Income Related Company Dividend OTHER OPERATING INCOME 2,713 3,552 4,167 7, ,012 2,694 3 COST OF SALES Staff cost 334, , , , , , , ,336 Pension 17,940 35,528 12,576 32,294 7,065 13,888 2,804 13,147 Gratuity 15,333 36,237 16,022 41,214 12,054 24,107 12,054 27,590 Medical 48,134 93,188 41,143 78,790 13,679 27,132 13,277 25,573 Training 8,045 15,187 4,519 9,325 3,319 8,503 2,447 5,510 International delivery costs 322, , , , , , , ,352 Domestic freight 280, , , , , ,473 73, ,911 Vehicle running costs 200, , , ,972 48,834 94,005 46,315 91,080 Agent costs 66, ,393 48,247 95,381 66, ,148 48,224 95,243 Local transport 53, ,210 44,495 88,442 43,057 78,780 33,509 68,335 Clearing and documentation charges 65, ,187 14,894 29,306 24,265 45,919 9,812 20,086 Rents ant rates of outlets 26,326 56,238 28,453 48,433 18,715 41,918 24,437 40,225 Insurance 7,855 10,203 12,809 23,885 6,417 6,592 5,150 10,084 Depreciation 57, ,681 41,944 81,800 18,902 33,260 18,556 32,779 Repairs and maintenance 23,090 38,199 19,336 40,435 16,723 28,365 13,406 28,866 1,529,545 2,996,438 1,202,900 2,276, ,368 1,435, ,114 1,226,118

8 Administation Costs 3.1 Administrative & other Expenses Repairs and maintenance 31,698 56,202 23,020 44,971 23,088 42,340 20,661 39,470 Transportation and travelling costs 12,331 29,130 14,079 25,807 8,399 20,013 10,572 20,032 Legal and professional charges 34,773 67,070 18,848 40,055 29,360 57,612 12,161 28,529 Publicity and promotion 11,586 25,745 7,920 16,704 4,096 8,237 6,083 11,168 Communication and telephone 12,286 27,618 13,415 28,780 6,161 14,063 11,881 26,094 Printing and stationery 26,879 59,343 22,197 49,512 23,665 52,408 20,046 42,621 Subscriptions and donations 7,217 15,653 9,113 21,091 6,074 13,281 6,078 15,224 Audit fee 4,802 9,797 5,325 9,550 3,250 6,500 3,250 6,500 Bank Charges 5,323 9,733 4,115 7,102 3,996 7,225 3,308 5,373 Medical 12,033 23,297 10,285 19,697 3,420 6,783 3,319 6,393 Power and water 27,675 63,258 32,239 62,571 22,707 49,390 30,962 60,624 Rent and rates Licence and registration Office protection services 10,713 20,807 10,800 20,515 6,520 12,749 7,116 13,511 Staff costs 109, , , ,922 50, ,640 58, ,132 Hotel accommodation and entertainmen 18,044 32,917 9,742 18,566 14,859 26,072 8,360 16,020 Insurance 1,964 2,551 3,202 5,971 6,417 1,648 1,287 2,521 Training 2,011 3,797 1,130 2, , ,378 Newspaper and periodicals , ,578 Specific provision for doubtful debts 25,125 47,750 25,125 47,158 14,500 29,000 14,500 28,408 Provisions for diminuition in investment Annual general meeting expenses 5,493 10,574-3,960 (1,888) (60) , , , , , , , , Gratuity Gratuity 3,833 9,059 4,005 10,303 3,013 6,027 3,014 6,898 3,833 9,059 4,005 10,303 3,013 6,027 3,014 6, Depreciation & Amortisation Amortisation of Intangible Assets 6,106 6,106 2,116 2,929 6,106 6,106 2,116 2,915 Depreciation charge 11,388 39,277 15,527 31,070 9,337 34,534 14,219 28,037 17,494 45,383 17,643 33,999 15,443 40,640 16,335 30,952 Finance Income/ Finance Costs Interest Received 6,451 12,573 3,539 5,402 6,303 12,149 3,239 5,102 Finance Cost - Interest payment on leas 7,579 10,983 1,187 2, (1,127) 1,590 2,352 2,497 6,303 12,149 3,239 5,102

9 Current Period Comparative Period Current Period Comparative Period Interim Period Year to Date Interim Period Year to Date Interim Period Year to Date Interim Period Year to Date 6. TAXATION Jul'17 - Sept'17 Apr'17 - Sept'17 Jul'16 - Sept'16 Apr'16 - Sept'16 Jul'17 - Sept'17 Apr'17 - Sept'17 Jul'16 - Sept'16 Apr'16 - Sept'16.1 Statement of Comprehensive Income Income tax 47, ,863 37,842 88,928 21,607 49,517 10,855 35,960 Education tax Irrecoverable WHT , ,863 37,842 88,928 21,607 49,517 10,855 35,960 Tax back duty assessment Deferred taxation (Note 15) - - Relating to origination & reversal of temporary differences Charge for the year Write back for the year , ,863 37,842 88,928 21,607 49,517 10,855 35, SEPT MARCH SEPT MARCH.2 Statement o Financial Position At the beginning of the year 206, , , ,548 Charge for the year 103, ,431 49,517 91,208 Tax Back Duty Audit Assessment - - Payments during the year (62,107) (75,792) (11,180) (28,045) Withholding tax credit utilised - (154,109) - (112,293) At the end of the year 248, , , ,418.3 The charge for income tax in these consolidated financial statements is based on the provisions of the Companies Income Tax Act, CAP C21, LFN 2004 as amended to date.

10 SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT. 30TH SEPTEMBER, 2017 Company Cost Land Buildings Plant & Machinery Motor Vehicles MOTOR CYCLES COMPUTER & OTHER EQUIPMENT Furniture, Fittings & Eqiup WORK IN PROGRESS N'000 N'000 Total INTANGIBLES At 1 April , ,846 60, ,550 83, ,614 45,445 9,140 1,141,771 65,405 Addition 29,744 13,074 3,681 40,226 8,923 20,397 3,442 (8,163) 111,325 21,984 Reclassifications Disposals Adjustment At 30TH SEPTEMBER, , ,920 64, ,776 92, ,011 48, ,253,096 87,389 Depreciation and impairment At 1 April ,318 32, ,174 73, ,265 29, ,741 47,237 Depreciation charge for the year - 5,104 4,976 23,989 4,167 21,103 2,707-62,047 6,106 Disposals Adjustment At 30TH SEPTEMBER, ,422 37, ,163 77, ,368 32, ,788 53, Net book value - At 30TH SEPTEMBER, , ,498 26, ,613 14,964 57,643 16, ,307 34,046 At 31 March , ,528 27, ,376 10,208 58,349 15,642 9, ,030 18,168 6 SCHEDULE OF PROPERTY PLANT AND EQUIPMENT. 30TH SEPTEMBER, 2017 Group Cost Land Buildings Plant & Machinery Motor Vehicles MOTOR CYCLES COMPUTER & OTHER EQUIPMENT Furniture, Fittings & Eqiup WORK IN PROGRESS N'000 N'000 Total INTANGIBLES At 1 April , ,080 68, , , ,932 77,791 9,140 2,352,020 65,905 Addition 29,744 16,874 3,681 77,496 29,477 24,457 4, , ,005 21,984 Reclassifications Disposals Adjustment At 30TH SEPTEMBER, , ,954 72, , , ,389 81, ,352 2,643,025 87,889 Depreciation and impairment At 1 April ,853 39, , , ,306 51,312-1,201,788 47,733 Depreciation charge for the year - 6,935 5,508 84,922 15, ,113 4, ,212 6,106 Disposals Adjustment At 30TH SEPTEMBER, ,788 44, , , ,419 56,222-1,343,000 53, Net book value - At 30TH SEPTEMBER, , ,166 27, ,814 19,058 66,971 25, ,352 1,300,028 34,050 At 31 March , ,311 30, ,437 13,291 63,178 13,726-1,150,232 18,172

11 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS SEPT MARCH SEPT MARCH 8. FINANCIAL ASSETS AVAILABLE FOR SALE a. Quoted Equities Nemeith International Pharmaceuticals Plc 822,743 ordinary shares of 50 Kobo each 2,057 2,057 2,057 2,057 2,057 2,057 2,057 2,057 Provision for diminution in investment (1,580) (1,580) (1,580) (1,580) b Unquoted investments at cost: 8.2 Investment in subsidiaries % Holding Investment in Red Star Freig ,000 10,000 Investment in Red Star Supp ,065 49,065 Investment in Red Star Logis , , , , , ,542 9 STOCKS Stationeries and packaging materials 32,486 35,610 29,416 32,672 Fuel and oil 9,921 10,822 9,433 10,822 Spare parts 1, Provision for obsolete stock TRADE DEBTORS 43,459 47,356 38,849 43,494 Trade debtors 1,866,911 2,001,656 1,107,549 1,232,408 Provision for doubtful debts (114,275) (114,275) (94,814) (94,814) 1,752,636 1,887,381 1,012,736 1,137,594

12 SEPT MARCH SEPT MARCH 11 OTHER RECEIVABLES WHT receivable from customers 501, , , ,537 WHT receipts received 86,557 32,860 84,525 32,860 Other debtors 25,151-23,658 - Bank interest receivable 989 2, ,319 Staff car advance 86,904 63,496 67,785 46,933 Staff business cash advance 97,367 27,440 23,816 19,085 Other staff advance 133, ,148 66,429 43, , , , , PREPAYMENTS Long term Prepayments 24,468 22,968 25,968 24,468 Current Prepayments 259, , , , , , , , Cash, Bank balances and other equivalents Cash balances 3,574 1,109 3, Cash-in-transit 72,264 46,499 71,773 44,382 Bank balances 245, , ,178 93,343 Business Deposits 71, ,005 71, , , , , , , , , , OTHER CREDITORS AND ACCRUALS Accruals 454, , , ,905 Customers deposit - Agents clearing charges 503, , , ,242 Union dues - 12,502-6,709 Withholding Taxes 73,483 58,983 66,982 51,787 Value added tax 231, , , ,810 Staff pension accruals (Note 14.1) 17,958 10,967 4,389 4,347 Unclaimed Dividend 87,983 92,034 87,983 92,034 Other creditors 117,167 59,561 75,663 21,111 1,486,313 1,286,186 1,096, , Staff pension accruals At the beginning of the year 10,967 25,066 4,347 4,979 Provision for the year 81, ,112 32,902 77,230 Payments and remittances (74,859) (169,211) (32,860) (77,862) At the end of the year 17,958 10,967 4,389 4, DEFERRED TAXATION At the beginning of the year 150, ,174 33,283 31,009 Charge for the year 41,632 2,457 Write-back - (183) - (183) At the end of the year 150, ,623 33,283 33,283

13 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 30TH SEPTEMBER, RECONCILIATION OF NET PROFIT AFTER TAXATION TO CASH PROVIDED BY OPERATING ACTIVITIES SEPT SEPT SEPT SEPT Net profit after taxation 220, , ,224 53,347 Adjustment to reconcile net income to net cash provided by operating: Depreciation 147,318 56,212 68,153 28,840 Interest income (12,573) (1,863) (12,149) (1,863) Interest paid (Interest expense) 10,983 1,718 - Provision for diminution in investments (Profit)/loss on disposal of fixed assets Loss on disposal of investment Adjustment to investment - - (90,000) - Adjustment to fixed assets Impairment in receivables - (22,133) - (12,790) Dividend received Changes in assets and liabilities: (Increase)/decrease in stocks 3,897 14,221 4,645 13,308 (Increase)/decrease in trade debtors 134,745 (118,708) 124,859 (101,702) (Increase)/Decrease in other debtors and prepayments (400,031) (24,746) (250,010) (44,599) Decrease/(increase) in due from related companies (31,512) (7,506) Decrease/(increase) in term Loans 63,849 9, (Decrease)/increase in trade creditors (22,433) (27,461) (16,747) (22,611) Increase/(decrease) in other creditors and accruals 200, , , ,093 Increase/(decrease) in due to related companies 45,485 50,190 (Decrease)/increase in taxation 41,756 51,086 38,337 25,105 (Decrease)/increase in deferred taxation Increase/(decrease) in staff Pension - Increase/(decrease) in employee benefits 1,715 49,135 3,436 53, , ,788 46,036 82,315 Net cash provided by operating activities 390, , , ,662

14 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS SEPT SEPT SEPT SEPT 17. RECONCILIATION OF CASH AND CASH EQUIVALENTS Cash balances 3,574 2,870 3,364 2,854 Cash-in-transit 72,264 41,695 71,773 38,669 Bank balances 245, , , ,305 Short term deposits 71, ,593 71, , EMPLOYMENT AND EMPLOYEES.1 Staff 392, , , ,420 Average number of persons employed in the financial year under review and the staff costs were as follows: Number Number Number Number Managerial Senior staff Supervisors Junior staff 1,572 1, ,849 1, Staff costs: Salaries, wages and other benefits 831, , , ,504 Staff pension and gratuity 89,706 93,270 30,134 43,477.2 Employees remunerated at higher rates, excluding allowances: 921, , , ,981 N N Number Number Number Number 140, ,000 1,445 1, , , , , ,001-1,700, ,700,001-2,011,

15 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 19. Compensation of key management personnel of Red Star Express SEPT MARCH SEPT MARCH.1 Fees and sitting Allowances 2,059 4,118 2,059 4,118 Executive compensation 2,052 3,908 2,052 3,908 Other Directors and benefits 4,503 8,577 4,503 8,577 Fees and emoluments disclosed above include ammount paid to: 8,614 16,603 8,614 16,603 Chairman The highest paid Director earned 3,307 6,613 3,307 6,613.2 The number of Directors excluding the Chairman whose emoluments were within the following ranges were: N N Number Number Number Number Below N1,000, ,000,000-2,000, ,000,001-3,000, ,000,001 and above GUARANTEES AND OTHER FINANCIAL COMMITMENTS.1 Contingent liabilities As at 30th September 2017, there were no contingent liabilities. The Directors are of the opinion that, based on the Solicitors' advice, no material loss will arise from them. Consequently, no provision has been made in these consolidated financial statements for the amount..2 Financial commitments The Directors are of the opinion that all known liabilities and commitments which are relevant in assessing the Company's state of affairs have been taken into account in the preparation of these consolidated financial statements under review..3 Performance Bond accepted a performance bond of N50 million (2016- N50 million) in favour of Nigeria Customs Service.

16 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 21. SUPPLIERS 's significant suppliers are mainly local. Some of the major suppliers are: Kungo-Rock Investments Limited Chita Express Limited Aegis Core Limited Knight Pride Int'l Limited Air France British Airways is not associated with the suppliers. 22. POST BALANCE SHEET EVENTS The Directors are of the opinion that there were no significant post balance sheet events which would have had any material effect on the balance sheet and the profit for the period ended on that date, which have not been adequately provided for or disclosed in the consolidated financial statements. 23. RELATED PARTY TRANSACTIONS a. Parent and ultimate controlling party The consolidated financial ststements include the financial statements of Red Star Express Plc and the subsidiaries listed below % Red Star Retirement Benefit Scheme 100 Red Star Freight Limited 100 Red Star Logistics Limited 100 Red Star Supports Services Limited 100 b. The companies receive payments from customers on behalf of each other and these are transferred accordingly. The balances due from/to the related companies which are disclosed in the balance sheet are as follows: SEPT MARCH SEPT MARCH Due from related company Red Star Freight Limited 42, ,092 Red Star Logistics Limited 445, ,363 Due to related companies 487, ,455 Red Star Supports Services Limited 282, , , ,279

17 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 24 EARNINGS PER SHARE Basic The Earnings calculation Per of Share basic earnings per share at 30th September 2017 for the company was based on the profit attributable to ordinary shareholders of N105 million and a weighted average number of ordinary shares outstanding of million for the company. While the group EPS calculation was based on the profit attributable to the group shareholders of N219 million and a weighted average number of ordinary shares outstanding of million shares Current Period Comparative Period Current Period Comparative Period Interim Period Year to Date Interim Period Year to Date Period Year to Date Interim Period Year to Date Apr'17 - Sept'17 Apr'16 - Sept'16 Apr'17 - Sept'17 Apr'16 - Sept'16 Jul'17 - Sept'17 Jul'16 - Sept'16 Jul'17 - Sept'1 Jul'16 - Sept'16 Profit for the year attributable to shareholders 100, ,710 73, ,973 45, ,224 20,012 76,416 Number Number Number Number Number Number Number Number Weighted Average number of ordinary shares outstanding 589, , , , , , , ,497 Earnings per share (Kobo) COMPARATIVE FIGURES The Consolidate Statement of Comprehensive Income and the associated notes have been presented in line with the new IFRS standard, together with the comparative figures. 26 Segment Information Segment Statement of Courier Logistics Freight Support Services Group Year to Date Year to Date Year to Date Year to Date Year to Date Year to Date Year to Date Year to Date Year to Date Year to Date Apr'17 - Sept'17 Apr'16 - Sept'16 Apr'17 - Sept'17 Apr'16 - Sept'16 Apr'17 - Sept'17 Apr'16 - Sept'16 Apr'17 - Sept'17Apr'16 - Sept'16 Apr'17 - Sept'17 Apr'16 - Sept'16 Segment Statement of Comprehensive Income N'000 N'000 Revenue 2,078,507 1,818, , , , , , ,085 4,102,101 3,255,684 Total Revenue 2,078,507 1,818, , , , , , ,085 4,102,101 3,255,684 Cost of Sales (1,435,432) (1,226,118) (613,802) (433,853) (338,729) (114,738) (637,022) (542,527) (2,996,438) (2,276,218) Other Income 1,012 2,694 1,856 4, ,552 7,905 Depreciation & Amortisation (40,640) (30,952) (3,919) (2,688) (228) (138) (596) (222) (45,383) (33,999) Other Operating Expenses (460,855) (456,526) (98,566) (69,121) (37,070) (21,606) (113,305) (87,886) (740,849) (677,967) Finance Income 12,149 5, ,573 5,402 Finance Charges - - (5,249) (3,458) (254) (207) (7,987) (970) (10,983) (2,905) Profit before income tax 154, ,375 75,160 46,280 33,244 20,251 61,427 98, , ,902 Income tax expence (49,517) (35,960) (24,051) (14,809) (10,638) (6,480) (19,657) (31,670) (103,863) (88,928) Profit after tax 105,224 76,415 51,108 31,471 22,606 13,771 41,770 67, , , SEPT MARCH SEPT MARCH SEPT MARCH SEPT MARCH SEPT MARCH Segment Statement of Financial Position N'000 N'000 Non Current Assets 1,056, , , ,770 7,466 8, , ,861 1,359,019 1,191,849 Current assets 2,438,933 2,494, , , , , , ,876 3,380,050 3,239,708 Total Assets 3,495,795 3,394,317 1,171,927 1,062, , , , ,737 4,739,069 4,431,557 Ordinary Share Capital 294, , , , ,000 10,000 49,065 49, , ,748 Share Premium 296, , , ,433 Retained Earnings 1,069,283 1,196, , , ,095 93, , ,190 1,825,778 1,840,901 Non Current Liabilities 85,895 82, ,996 79,470 1,646 1,292 36,577 79, , ,702 Current liabilities 1,749,435 1,524, , ,644 90, , , ,951 1,986,818 1,750,810 Total Equity & Liabilities 3,495,795 3,394,317 1,171,927 1,062, , , , ,737 4,739,069 4,431,557