Group Financials RED STAR EXPRESS PLC UNAUDITED FINANCIAL REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2017
UNAUDITED FINANCIAL HIGHLIGHTS FOR THE PERIOD ENDED 30TH SEPTEMBER, 2017 MAJOR STATEMENT OF COMPREHENSIVE INCOME ITEMS THE GROUP 2017 2016 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 147,977 324,573 111,196 277,901 PROFIT AFTER TAX 100,625 220,710 73,354 188,973 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 2,078,507 912,395 1,818,175 PROFIT BEFORE TAX 67,521 154,741 30,867 112,376 PROFIT AFTER TAX 45,914 105,224 20,012 76,416 MAJOR STATEMENT OF FINANCIAL POSITION ITEMS THE GROUP THE COMPANY 2017 2017 2016 2017 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 294,748 294,748 294,748 294,748 SHARE PREMIUM 296,433 296,433 296,433 296,433 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 2017 2017 2017 2017 N' 000 N' 000 N' 000 N' 000 NO OF ORDINARY SHARES 589,497 589,497 589,497 589,497 NET ASSET (N) 2,416,959 2,432,048 1,660,465 1,791,039 EARNINGS PER SHARE (KOBO) 37 32 18 13 NET ASSET PER SHARE(KOBO) 410 413 282 304
UNAUDITED CONSOLIDATED AND SEPARATE STATEMENT OF FINANCIAL POSITION AS AT 30TH SEPTEMBER, 2017 2017 2017 2016 2017 SEPT MARCH SEPT MARCH Note N'000 N'000 N'000 ASSETS Non Current Assets Property, plant and equipments 7 1,300,028 1,150,232 622,307 573,030 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 8 477 477 477 477 Investment in subsidiary 374,065 284,065 Deposit for shares - - - - Employee Benefit asset - - - - Total Non Current Assets 1,359,019 1,191,849 1,056,863 900,208 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 12 259,495 158,422 147,394 106,732 Other receivables 11 931,846 632,888 453,089 306,370 Due from related company 23 487,967 456,455 Cash and cash equivalents 13 392,613 513,661 298,898 443,464 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 15 150,623 150,623 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 335,292 248,702 85,895 82,459 Current liabilities Trade creditors 217,668 240,101 222,431 239,178 Other creditors and accruals 14 1,486,313 1,286,186 1,096,486 934,945 Due to related companies 23 282,764 237,279 Term loan: Falling due within 12 Months (finance lease) 34,637 18,077 - Income tax liabilities 6 248,200 206,444 147,755 109,418 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 294,748 294,748 294,748 294,748 Share premium 296,433 296,433 296,433 296,433 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/00000015290 Babura Auwalu Badamasi Chief Financial Officer FRC/2016/ICAN/00000014402
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 2,078,507 912,395 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 1,105,664 456,163 979,465 305,174 643,075 266,281 592,057 Other income 2 2,713 3,552 4,167 7,905 496 1,012 0 2,694 530,431 1,109,215 460,330 987,370 305,669 644,087 266,281 594,751 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 147,977 324,573 111,196 277,901 67,521 154,741 30,867 112,376 Interest and similar charges - - - - - - - - Provision for diminution in investments Profit Before Income Tax 147,977 324,573 111,196 277,901 67,521 154,741 30,867 112,376 Income Tax 6 (47,353) (103,863) (37,842) (88,928) (21,607) (49,517) (10,855) (35,960) Profit from continuing operation 100,625 220,710 73,354 188,973 45,914 105,224 20,012 76,416 Profit attributable to: Owners of the company 100,625 220,710 73,354 188,973 45,914 105,224 20,012 76,416 Non controlling Interests - - - - - - - - Profit for the period 100,625 220,710 73,354 188,973 45,914 105,224 20,012 76,416 Earnings per share Basic earnings per share (kobo) 24 17 37 12 32 8 18 3 13 Diluted earnings per share (kobo) 17 37 12 32 8 18 3 13 Number of ordinary shares in issue 24 589,497 589,497 589,497 589,497 589,497 589,497 589,497 589,497
CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY 2017 2016 2017 2016 SEPT SEPT SEPT SEPT SHARE CAPITAL Authorised 1,000,000,000 ordinary shares of 50 kobo each 500,000 500,000 500,000 500,000 Issued and fully paid 589,496,760 ordinary shares of 50 kobo each 294,748 294,748 294,748 294,748 GENERAL RESERVE At the beginning of the year 1,840,867 1,620,862 1,199,858 1,091,932 Profit for the period 220,710 188,973 105,224 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 1,069,283 962,023
CONSOLIDATED AND SEPARATE STATEMENT OF CASH FLOWS GROUP THE COMPANY NOTE 2017 2016 2017 2016 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 390,062 383,392 151,260 173,231 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 513,661 635,134 443,464 485,068 Cash and cash equivalents at the end of the year 392,613 508,446 298,898 343,420
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 2,078,507 912,395 1,818,175 1,042,542 2,078,507 912,395 1,818,175 Logistics 421,413 794,416 270,649 550,979 Freight 178,001 409,525 110,114 156,445 Support Service 415,309 819,653 365,906 730,085 2 OTHER OPERATING INCOME 2,057,264 4,102,101 1,659,064 3,255,684 1,042,542 2,078,507 912,395 1,818,175 a. Other Income Insurance Claim 1,165 1,696 191 893 496 1,012-702 Profit on Disposals of fixed Assets - - 192 192 - - 192 192 Exchange gain - - 2,614 2,614 - - - 0 Other Sundry income 1,148 1,456 271 1,912 - - - 0 Bad debt recovered 400 400 900 2,295 - - 900 1,800 Rent - - - 0 - - - 0 2,713 3,552 4,167 7,905 496 1,012 1,092 2,694 b. Investment Income Related Company Dividend - - 0 - - 0 - - 0 OTHER OPERATING INCOME 2,713 3,552 4,167 7,905 496 1,012 2,694 3 COST OF SALES Staff cost 334,806 665,393 293,974 601,536 136,511 279,322 138,981 289,336 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 322,533 654,610 279,807 422,135 220,456 418,019 203,693 328,352 Domestic freight 280,940 542,446 188,547 376,270 100,888 218,473 73,449 149,911 Vehicle running costs 200,992 391,738 156,134 306,972 48,834 94,005 46,315 91,080 Agent costs 66,496 117,393 48,247 95,381 66,484 117,148 48,224 95,243 Local transport 53,932 100,210 44,495 88,442 43,057 78,780 33,509 68,335 Clearing and documentation charges 65,232 132,187 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 57,890 107,681 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 2,276,218 737,368 1,435,432 646,114 1,226,118
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 - - - 0 - - - 0 Licence and registration - - - 0 - - - 0 Office protection services 10,713 20,807 10,800 20,515 6,520 12,749 7,116 13,511 Staff costs 109,478 225,599 118,573 240,922 50,046 104,640 58,526 123,132 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 2,331 830 2,126 612 1,378 Newspaper and periodicals 568 949 710 1,809 496 802 583 1,578 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 - - - 592 - - - 592 Annual general meeting expenses 5,493 10,574-3,960 (1,888) (60) - 461 359,999 731,790 329,838 667,664 225,995 454,828 219,305 449,628 4.0 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 6,898 5.0 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 2,905 - - - 0 (1,127) 1,590 2,352 2,497 6,303 12,149 3,239 5,102
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 47,353 103,863 37,842 88,928 21,607 49,517 10,855 35,960 Education tax - - - - Irrecoverable WHT - - 47,353 103,863 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 - - - - 47,353 103,863 37,842 88,928 21,607 49,517 10,855 35,960 2017 2017 2017 2017 SEPT MARCH SEPT MARCH.2 Statement o Financial Position At the beginning of the year 206,444 256,886 109,418 158,548 Charge for the year 103,863 179,431 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 248,200 206,444 147,755 109,418.3 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.
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 2017 90,147 294,846 60,620 271,550 83,410 286,614 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, 2017 119,891 307,920 64,301 311,776 92,333 307,011 48,887 977 1,253,096 87,389 Depreciation and impairment At 1 April 2017-39,318 32,979 165,174 73,202 228,265 29,803-568,741 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, 2017-44,422 37,955 189,163 77,369 249,368 32,510-630,788 53,343 - - Net book value - At 30TH SEPTEMBER, 2017 119,891 263,498 26,346 122,613 14,964 57,643 16,377 977 622,307 34,046 At 31 March 2017 90,147 255,528 27,641 106,376 10,208 58,349 15,642 9,140 573,030 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 2017 167,543 439,080 68,994 902,117 384,424 302,932 77,791 9,140 2,352,020 65,905 Addition 29,744 16,874 3,681 77,496 29,477 24,457 4,063 105,212 291,005 21,984 Reclassifications - - - - - - - - - - Disposals - - - - - - - - - - Adjustment - - - - - - - - - - At 30TH SEPTEMBER, 2017 197,287 455,954 72,675 979,613 413,901 327,389 81,854 114,352 2,643,025 87,889 Depreciation and impairment At 1 April 2017-57,853 39,422 436,877 379,018 237,306 51,312-1,201,788 47,733 Depreciation charge for the year - 6,935 5,508 84,922 15,825.22 23,113 4,910-141,212 6,106 Disposals - - - - - - - - - - Adjustment - - - - - - - - - - At 30TH SEPTEMBER, 2017-64,788 44,930 521,799 394,843 260,419 56,222-1,343,000 53,839 - - Net book value - At 30TH SEPTEMBER, 2017 197,287 391,166 27,745 457,814 19,058 66,971 25,633 114,352 1,300,028 34,050 At 31 March 2017 167,043 382,311 30,408 212,437 13,291 63,178 13,726-1,150,232 18,172
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2017 2017 2017 2017 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) 477 477 477 477 b Unquoted investments at cost: 8.2 Investment in subsidiaries % Holding Investment in Red Star Freig 100 100,000 10,000 Investment in Red Star Supp 100 49,065 49,065 Investment in Red Star Logis 100 225,000 225,000 374,065 284,065 477 477 374,542 284,542 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 1,052 924 - - Provision for obsolete stock - - - - 10 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
2017 2017 2017 2017 SEPT MARCH SEPT MARCH 11 OTHER RECEIVABLES WHT receivable from customers 501,353 382,625 185,886 161,537 WHT receipts received 86,557 32,860 84,525 32,860 Other debtors 25,151-23,658 - Bank interest receivable 989 2,319 989 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 133,525 124,148 66,429 43,636-931,846 632,888 453,089 306,370 12 PREPAYMENTS Long term Prepayments 24,468 22,968 25,968 24,468 Current Prepayments 259,495 158,422 147,394 106,732 283,963 181,390 173,362 131,200 13. Cash, Bank balances and other equivalents Cash balances 3,574 1,109 3,364 892 Cash-in-transit 72,264 46,499 71,773 44,382 Bank balances 245,192 146,048 152,178 93,343 Business Deposits 71,583 320,005 71,583 304,847 392,613 513,661 298,898 443,464 392,613 513,661 298,898 443,464 14. OTHER CREDITORS AND ACCRUALS Accruals 454,687 422,291 225,797 226,905 Customers deposit - Agents clearing charges 503,595 411,242 503,595 411,242 Union dues - 12,502-6,709 Withholding Taxes 73,483 58,983 66,982 51,787 Value added tax 231,440 218,606 132,078 120,810 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 1,096,486 934,945 14.1 Staff pension accruals At the beginning of the year 10,967 25,066 4,347 4,979 Provision for the year 81,850 155,112 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 4,347 15. DEFERRED TAXATION At the beginning of the year 150,623 109,174 33,283 31,009 Charge for the year 41,632 2,457 Write-back - (183) - (183) At the end of the year 150,623 150,623 33,283 33,283
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 30TH SEPTEMBER, 2017 16. RECONCILIATION OF NET PROFIT AFTER TAXATION TO CASH PROVIDED BY OPERATING ACTIVITIES 2017 2016 2017 2016 SEPT SEPT SEPT SEPT Net profit after taxation 220,710 108,557 105,224 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 9,339 - - (Decrease)/increase in trade creditors (22,433) (27,461) (16,747) (22,611) Increase/(decrease) in other creditors and accruals 200,127 129,989 161,541 102,093 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 53,850 169,352 116,788 46,036 82,315 Net cash provided by operating activities 390,061 225,345 151,260 135,662
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2017 2016 2017 2016 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 245,192 254,287 152,178 107,305 Short term deposits 71,583 209,593 71,583 194,593 18. EMPLOYMENT AND EMPLOYEES.1 Staff 392,613 508,446 298,898 343,420 Average number of persons employed in the financial year under review and the staff costs were as follows: Number Number Number Number Managerial 7 7 4 4 Senior staff 41 44 31 38 Supervisors 229 237 62 66 Junior staff 1,572 1,576 164 168 1,849 1,864 261 276 Staff costs: Salaries, wages and other benefits 831,742 777,728 349,152 371,504 Staff pension and gratuity 89,706 93,270 30,134 43,477.2 Employees remunerated at higher rates, excluding allowances: 921,447 870,998 379,286 414,981 N N Number Number Number Number 140,001-210,000 1,445 1,464 160 163 210,001-360,000 348 343 59 67 360,000-900,000 48 44 36 34 900,001-1,700,000 5 11 3 10 1,700,001-2,011,000 3 2 3 2
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 19. Compensation of key management personnel of Red Star Express 2017 2017 2017 2017 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 440 880 660 880 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 6-6 - 1,000,000-2,000,000-5 - 5 2,000,001-3,000,000-1 - 1 3,000,001 and above - 3-3 20. 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.
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: 2017 2017 2017 2017 SEPT MARCH SEPT MARCH Due from related company Red Star Freight Limited 42,785 162,092 Red Star Logistics Limited 445,182 294,363 Due to related companies 487,967 456,455 Red Star Supports Services Limited 282,764 237,279 282,764 237,279
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 589.5 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 589.5 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 100,625 220,710 73,354 188,973 45,914 105,224 20,012 76,416 Number Number Number Number Number Number Number Number Weighted Average number of ordinary shares outstanding 589,497 589,497 589,497 589,497 589,497 589,497 589,497 589,497 Earnings per share (Kobo) 17 37 12 32 8 18 3 13 25 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 1,818,175 794,416 550,979 409,525 156,445 819,653 730,085 4,102,101 3,255,684 Total Revenue 2,078,507 1,818,175 794,416 550,979 409,525 156,445 819,653 730,085 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 4,421-495 684 491 3,552 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 5,102 424 - - - - - 12,573 5,402 Finance Charges - - (5,249) (3,458) (254) (207) (7,987) (970) (10,983) (2,905) Profit before income tax 154,741 112,375 75,160 46,280 33,244 20,251 61,427 98,971 324,573 277,902 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 67,301 220,710 188,974 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 SEPT MARCH SEPT MARCH SEPT MARCH SEPT MARCH SEPT MARCH Segment Statement of Financial Position N'000 N'000 Non Current Assets 1,056,863 900,208 488,997 384,770 7,466 8,572 181,259 183,861 1,359,019 1,191,849 Current assets 2,438,933 2,494,109 682,930 677,298 300,503 373,795 496,643 394,876 3,380,050 3,239,708 Total Assets 3,495,795 3,394,317 1,171,927 1,062,068 307,970 382,367 677,901 578,737 4,739,069 4,431,557 Ordinary Share Capital 294,748 294,748 225,000 225,000 100,000 10,000 49,065 49,065 294,748 294,748 Share Premium 296,433 296,433 - - - - - - 296,433 296,433 Retained Earnings 1,069,283 1,196,268 318,062 266,954 116,095 93,489 324,133 284,190 1,825,778 1,840,901 Non Current Liabilities 85,895 82,459 186,996 79,470 1,646 1,292 36,577 79,531 335,292 248,702 Current liabilities 1,749,435 1,524,410 441,869 490,644 90,745 277,586 270,858 165,951 1,986,818 1,750,810 Total Equity & Liabilities 3,495,795 3,394,317 1,171,927 1,062,068 308,486 382,367 680,633 578,737 4,739,069 4,431,557