2019 - nigerian stock exchange · 2. nine months (jan-september 2019) performance 2.1 revenue tip...

2019

Initiates finance

THE INITIATES PLC.

10/15/2019

THE INITIATES PLC MANAGEMENT ACCOUNT

FOR PERIOD ENDED 30TH SEPTEMBER 2019

DOCUMENT TITLE: 2019 THIRD QUARTER MANAGEMENT ACCOUNT

DOCUMENT NO.: TIP-CFD-MNG -0019 REV NO.: 00

Page 1 of 21

Unit/Dept: COMMERCIAL AND FINANCE Site/Location: TIP BASE

Completed By: DOUGLAS ROSEMARY Position: CHIEF FINANCIAL OFFICER

TABLE OF CONTENT

TITLE PAGE -------------------------------------------------------1

TABLE OF CONTENT--------------------------------------------------2

EXECUTIVE SUMMARY-------------------------------------------------3-5

STATEMENT OF COMPREHENSIVE INCOME----------------------------------6

STATEMENT OF FINANCIAL POSITION------------------------------------7

CHANGE IN EQUITY---------------------------------------------------8

CASHFLOW STATEMENT------------------------------------------------9

NOTE TO THE ACCOUNTS-- -------------------------------------------10-19

STATEMENT OF VALUE ADDED------------------------------------------20

FIVE YEARS FINANCIAL SUMMARY---------------------------------------21



Page 2 of 21

EXECUTIVE SUMMARY:

1. INTRODUCTION

The TIP 2019 Third Quarter Management Accounts was prepared in accordance with IFRS,

GAAP, TIP strategy and regulations.

This report provides sufficient and actual information that will enhance informed

decisions on the genuineness and reliability of the principal books of accounts and

the dependability of the internal control mechanism put in place by management to

ensure that the account is properly prepared and assets safeguarded.

2. NINE MONTHS (JAN-SEPTEMBER 2019) PERFORMANCE

2.1 REVENUE

TIP nine months Revenue as at September dropped from NGN457.8m in 2018 to NGN381.6m in

2019 representing a 20% decrease in revenue generation in the same period in 2018.

From this Revenue, C&B Business Line alone contributed 42 % (NGN176m). This is as a

result of revenue from the concluding asbestos project that commenced in 2017 and was

completed within the period under review. Contributions from other Business Lines

include: TDU: NGN85m, HWC (Incineration): NGN 44m, Non Hazardous Waste Management

Services: NGN57m and Others: NGN15m).

2.2 GROSS PROFIT

TIP posted a Gross Profit of NGN153.9m for the period under review which is 51% lower

than that of the same period in 2018 (NGN 232.9m) However, Total Direct Cost of

NGN227.7m (2018:NGN224.9m) which stood at 60% of Total Turnover for the period

correspond with TIP approved standard benchmark.



Page 3 of 21

2.3 NET PROFIT

The reported Net Profit before Tax for the period ended September 2019 stood at 48m

(2018:NGN102m) which is 13% of Turnover for the same period,

2.4 BALANCE SHEET

TIP Balance Sheet value also fell to NGN986.5m as at the close of business (COB) on

the 30 September, 2019.

a. Trade Receivables: This stood at NGN207.4m at the close of business on 30

September, 2019,

b. Account Payable

TIP Account Payable of NGN54m as at 30 September, 2019 which can be conveniently

covered by the Trade Receivable of NGN207.4m at least 4 times over.

3. Q3 2018 PERFORMANCE

TIP’s Q3 2019 Total Revenue of NGN115m which is above the recorded revenue of the

corresponding quarter in 2018 of NGN55m showing an increase by 100%. Gross Profit also

increased to NGN34.5m in Q3 2019 from NGN21.9m in Q3 2018.



Page 4 of 21

HIGHLIGHT OF THIRD QUARTER REPORT

ACTUAL HISTORICAL ACTUAL HISTORICAL

Q3 2019 Q3 2018 CHANGE YTD 2019 YTD 2019 CHANGE

N'Mn N'Mn % N'Mn N'Mn N'MnRevenue 115.72 55.51 52 381.59 457.84 (20)

Direct cost 80.87 33.66 58 227.73 224.94 1

Gross Profit 34.85 21.85 37 153.86 232.89 (51)

Total Indirect Expenses 34.15 47.25 (38) 105.72 130.86 (24)

Financial Cost 1.00 1.84 (84) 22.44 9.23 59

Profit Before Tax (0.29) (27.24) (9,223) 25.71 92.80 (261)

Provision for Income Tax Expense (0.07) (6.81) (9,223) 6.43 23.20 (261)

Profit for the period (0.22) (20.43) (9,223) 19.28 69.60 (261)

ACTUAL HISTORICAL

YTD 2019 YTD 2018 CHANGE

ASSETS N'Mn N'Mn %

Property, plant and Equipment 656.36 665.08 (1)

Total Non-Current Assets

Inventories 5.95 1.72 71

Trade receivables 208.45 232.01 (11)

Cash and cash equivalents 1.17 56.37 (4,733)

Current tax assets 100.95 95.89 5

Other current tax assets 13.66 5.20 62

Total current Asset 330.17 391.19 (18)

Total Assets 986.53 1,056.27 (7)

Non-Current Liabilities

Deferred tax 54.38 29.28 46

Current Liabilities

Trade and Other payables 124.42 219.10 (76)

Current tax liabilities 12.50 19.46 (56)

Other current tax liabilities 33.22 31.50 5

Employees' benefits 3.69 1.29 65

Short term borrowings 15.00 - 100

Total current liabilities 188.82 271.35 (44)

Total Liabilities 243.20 300.62 (24)

Working Capital 141.35 119.84 15

Net Asset 743.33 755.65 (2)

RATIOS



N'Mn N'Mn % N'Mn N'Mn %

Earnings Per Share (0.0002) (0.02) (92.23) 0.0216 Kobo 0.078 Kobo (2.61)

Gross Profit Margin 30.12% 39.36% (0.31) 0.40% 0.51% (0.26)

Net Profit Margin (0.19) (36.80) (193.35) 5.05% 15.20% (2.01)

Net Asset Per Shares 0.84Kobo 0.85 Kobo (0.02) 0.835 Kobo 0.849 Kobo (0.02)

Return on Capital Employed 0.42x (2.61) 7.20 2.42% 8.86% (2.67)

Current Ratios 1.73x 1.44x 0.18 1.73x (65.18) 38.28

Net Working Capital: 1.21x 2.13X (0.77) 0.36x (3.92) 11.58

Fixed Asset Turnover: 0.18x 0.08x 0.53 0.58x (28.00) 49.17

Receivables Turnover 1.11x 0.48x 0.57 3.64x (67.64) 19.48

Payables Turnover 1.27x 0.31x 0.76 3.59x (69.42) 19.96

Return On Equity (0.0003) (0.03) (90.71) 0.03 Kobo 0.09Kobo (2.55)

Return On Assets 0.12 Kobo 0.05 Kobo 0.55 0.39 Kobo 0.43Kobo (0.12)

Price Earning per Share (2,030.64) (21.78) 0.99 23.08 Kobo 6.39 Kobo 0.72

Gearing 0.02% - (1.00) - - -

THREE MONTHS ENDED SEPTEMBER 30TH NINE MONTHS ENDED SEPTEMBER 30TH

STATEMENT OF FINANCIAL POSITION

STATEMENT OF COMPREHENSIVE INCOME

Non-Current Assets

Current Assets

NINE MONTHS ENDED SEPTEMBER 30TH

NINE MONTHS ENDED SEPTEMBER 30THTHREE MONTHS ENDED SEPTEMBER 30TH



Page 5 of 21

Graphical representation of TIP's Third Quarter 2019 performance

Graphical representation of TIP's performance for Nine months in 2019.

(200.00)

-

200.00

400.00

600.00

800.00

1,000.00

1,200.00

Q3 2019 ACTUAL N'Mn

Q3 2018 HISTORY N'Mn

-

200.00

400.00

600.00

800.00

1,000.00

1,200.00

JAN - SEPT 2019 ACTUAL N'Mn

JAN - SEPT 2018 HISTORY N'Mn

TDU Inflow 22%

Incinerator12%

E-Waste0%

Cleaning and Decontamination

46%

Fixation1%

Non Hazardeous Waste

15%

Other Income4%

REVENUE PER BUSINESS LINES FOR YTD 2019

Waste disposal54%

Fixation0%

Hiring of equipment

7%

Diesel and lubricants

3%

Repairs and Maintenance

5%

Consumables13%

Depreciation9%

Direct wages3%

Community relations and

security

2%Compliance

1%

Other direct costs3%

COST OF SALES FOR YTD 2019



Page 6 of 21

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30TH SEPTEMBER 2019

ACTUAL HISTORY ACTUAL HISTORICAL

Q3 2019 Q3 2018 CHANGE JAN - SEPT 2019 JAN - SEPT 2018 CHANGE 2018

Continuing Operations Note N N % N N % N

Revenue 5 115,723,804 55,514,670 52 381,592,122 457,835,131 (20) 723,442,165

Cost of sales 6 80,869,861 33,664,379 58 227,729,103 224,941,194 1 371,721,258

Gross profit 34,853,943 21,850,290 37 153,863,019 232,893,937 (51) 351,720,907

Staff costs 10 17,076,483 17,935,644 (5) 50,661,666 52,850,961 (4) 74,060,130

Depreciation and impairment loss 11 1,783,275 1,561,446 12 5,327,663 4,599,933 14 5,852,221

Administrative expenses 12 15,286,368 27,751,895 (82) 49,726,842 73,411,793 (48) 97,901,448

34,146,127 47,248,985 (38) 105,716,172 130,862,688 (24) 177,813,799

Results from operating activities 707,816 (25,398,695) 3,688 48,146,847 102,031,249 (112) 173,907,108

Finance cost 8 1,000,000 1,841,960 (84) 22,441,198 9,233,877 59 7,306,303

Profit before taxation (292,184) (27,240,655) (9,223) 25,705,649 92,797,372 (261) 166,600,805

Provision for Income tax expense (73,046) (6,810,164) (9,223) 6,426,412 23,199,343 (261) 41,650,201

Profit after taxation (219,138) (20,430,491) (9,223) 19,279,237 69,598,029 (261) 124,950,604

Other Comprehensive income

Foreign currency translation difference 9 3,573,538 (41,437) 101 15,451,158 5,845,978 62 (11,249,990)

Other comprehensive income for the period 3,573,538 (41,437) 101 15,451,158 5,845,978 62 (11,249,990)

Total comprehensive income for the period 3,354,400 (20,471,929) 710 34,730,395 75,444,007 (117) 113,700,614

Basic earnings per share (kobo) (0.00) (0.02) 0.02 0.08 0.14

Diluted earnings per share (kobo) (0.00) (0.02) 0.02 0.08 0.14

The notes on pages 10 to 19 form part of these financial statements.



Page 7 of 21

STATEMENT OF FINANCIAL POSITION

AS AT 30TH SEPTEMBER 2019

ACTUAL HISTORY ACTUAL

Q3 2019 Q3 2018 CHANGE 2018

Note N N % N

Assets

Non-current assets

Property, plant and equipment 13 656,362,383 665,081,212 (1) 655,833,451

Current assets

Inventories 14 5,948,784 1,717,255 71 3,708,367

Trade and other receivables 15 208,452,420 232,010,639 (11) 287,236,270

Cash and cash equivalents 16 1,166,510 56,372,697 (4,733) 79,055,268

Current tax assets 17 100,945,123 95,892,438 5 97,218,003

Other current assets 18 13,658,377 5,197,593 62 6,432,901

Total current assets 330,171,215 391,190,622 (18) 473,650,809

Total Assets 986,533,598 1,056,271,834 (7) 1,129,484,260 #DIV/0!

Equity and Liabilities

Equity

Share capital 19 444,990,776 444,990,776 - 444,990,776

Share premium 20 17,780,000 17,780,000 - 17,780,000

Revaluation reserve 21 82,210,528 83,410,528 (1) 82,210,528

Retained earnings 23 198,349,736 209,466,277 (6) 163,619,341

Total equity 743,331,040 755,647,581 (2) 708,600,645 #DIV/0!

Non-current liabilities

Long term loan 22 - -

Deferred tax liabilities 54,377,713 29,276,182 46 54,377,713

Current liabilities #DIV/0!

Trade and other payables 24 124,415,950 219,096,389 (76) 190,932,449

Current tax liabilities 25 12,503,556 19,459,881 (56) 20,641,917

Other Current tax liabilities 26 33,219,818 31,500,633 5 34,813,288

Employees' benefits 29 3,685,521 1,291,169 65 118,248

Short term borrowings 28 15,000,000 - 100 120,000,000 Total current liabilities 188,824,844 271,348,071 (44) 366,505,902

Total liabilities 243,202,557 300,624,253 (24) 420,883,615 #DIV/0!

Total equity and liabilities 986,533,598 1,056,271,834 (7) 1,129,484,260

These financial statements were approved by the Board of Directors on 24th October, 2019 and signed on

its behalf by:

………………………………………. …………………………………………..

Mr. Joe Ogbonna Anosikeh Mr. Reuben Mustapha Ossai Rosemary Douglas

Chairman Managing Director Chief Finance Officer

FRC No:FRC/2014/NIS/00000008836 FRC No:FRC/2014/NIAECHI/00000009687 FRC No:FRC/2017/ICAN/00000016060

The notes on pages 10 to 19 form part of these financial statements.



Page 8 of 21

STATEMENT OF CHANGES IN EQUITY

PERIOD ENDED 30TH SEPTEMBER 2019Share Share Revaluation Retained Total

capital premium reserve earnings Equity

N N N N N

At 1 January 444,990,776 17,780,000 82,210,528 163,619,341 708,600,645

Profit for the Period - - - 19,279,237 19,279,237

444,990,776 17,780,000 82,210,528 182,898,578 727,879,882

Other comprehensive income:

Foreign currency translation difference - - - 15,451,158 15,451,158

At 30th Sept. 2019 444,990,776 17,780,000 82,210,528 198,349,736 743,331,040

PERIOD ENDED 30TH SEPEMBER 2018

Share Share Revaluation Retained Total


N N N N N

At 1 January 444,990,776 17,780,000 83,410,528 169,621,532 715,802,836

Dividend paid out (35,599,262)

Profit for the year - - - 69,598,029 69,598,029

444,990,776 17,780,000 83,410,528 203,620,299 785,400,865


Foreign currency translation difference - - - 5,845,978 5,845,978

At 30th September 2018 444,990,776 17,780,000 83,410,528 209,466,277 791,246,843

YEAR ENDED 31ST DECEMBER 2018

Share Share Revaluation Retained Total


N N N N N

At 1 January 444,990,776 17,780,000 83,410,528 169,621,532 715,802,836

Prior year adjustments - - - (61,383,246) (61,383,246)

Performance Bonus - - (1,200,000) - (1,200,000)

Dividend paid - - - (35,599,262) (35,599,262)

Profit for the year - - - 102,230,307 102,230,307

444,990,776 17,780,000 82,210,528 174,869,331 719,850,635


Foreign currency translation difference - - - (11,249,990) (11,249,990)

At 31st December 2018 444,990,776 17,780,000 82,210,528 163,619,341 708,600,645



Page 9 of 21

STATEMENT OF CASH FLOWS


ACTUAL HISTORY ACTUAL HISTORICAL

Q3 2019 Q3 2018 CHANGE YTD 2019 YTD 2018 CHANGE 2018

Note N N % N N % N

Cash flows from operating activities

Cash received from customers 50,089,883 287,832,094 (475) 183,876,605 296,560,207 (61) 824,653,592

Cash paid to suppliers and employees (50,149,586) (221,984,975) (343) (140,838,774) (138,126,846) 2 (739,921,148)

Net cash provided by operating activities (59,703) 65,847,119 110,391 43,037,831 158,433,361 (268) 84,732,444.00

Cash flows from investing activities

Payments for property, plant and equipment - - - (26,769,692) (7,770,000) 71 (18,245,708)

Net cash provided by investing activities - - - (26,769,692) (7,770,000) 71 (18,245,708)

Cash flows from financing activities

Short term loan repayment (30,000,000) (45,000,000) (50) (120,000,000) (60,000,000) 50 (105,000,000)

Short term loan receipt 25,000,000 100 25,000,000 - 165,000,000

Dividend paid - (35,599,262) (100) - (35,599,262) (100) (35,599,262)

Net cash provided by financing activities (5,000,000) (80,599,262) (1,512) (95,000,000) (95,599,262) (1) 24,400,738

Decrease in cash and cash equivalents (5,059,703) (14,752,143) (192) (78,731,860) 55,064,098 170 90,887,474

Cash and cash equivalents at 1 January 6,226,213 71,157,278 (1,043) 79,898,371 1,341,037 98 1,341,037

Cash and cash equivalents at 30th September 2019 16 1,166,510 56,405,135 (4,735) 1,166,510 56,405,135 (4,735) 92,228,511



Page 10 of 21

NOTES TO THE FINANCIAL STATEMENTS


ACTUAL HISTORICAL ACTUAL HISTORICAL ANNUAL


5. Turnover N N % N N % N

TDU Inflow 68,531,273 4,333,875 94 85,894,976 314,261,119 (266) 314,634,796

Incinerator 9,741,597 10,587,418 (9) 44,330,631 19,797,723 55 24,736,851

E-Waste 40,000 - 100 40,000 - 100 -

Cleaning and Decontamination 9,493,542 12,011,525 (27) 175,657,208 83,989,921 52 134,780,008

Fixation 2,027,876 - 100 3,374,944 - 100

Non Hazardeous Waste 17,330,616 12,549,887 28 57,220,185 18,404,902 68 226,647,098

Other Income 8,558,900 16,031,965 (87) 15,074,178 21,381,465 (42) 22,643,412

115,723,804 55,514,670 52 381,592,122 457,835,131 (20) 723,442,165

6. Cost of Sales

Waste disposal 51,517,415 2,673,700 95 121,795,915 52,982,700 56 132,739,750

Fixation 602,500 - - 602,500 - - -

Hiring of equipment 3,492,177 5,807,650 (66) 14,866,294 68,747,945 (362) 83,400,711

Diesel and lubricants 1,572,389 661,658 58 7,445,519 2,837,963 62 4,968,465

Repairs and Maintenance 3,266,380 4,957,260 (52) 12,393,086 9,437,575 24 12,616,649

Consumables 6,132,000 1,291,050 79 28,490,735 10,915,504 62 49,310,646

Depreciation 7,010,412 6,862,914 2 20,913,098 20,442,418 2 26,872,375

Direct wages 2,333,000 5,532,600 (137) 7,789,880 13,165,632 (69) 15,432,441

Community relations and security 2,121,050 796,174 62 5,443,921 31,968,552 (487) 34,414,956

Compliance 726,573 2,075,750 (186) 1,924,580 7,567,250 (293) 9,097,757

Other direct costs 2,095,966 3,005,623 (43) 6,063,576 6,875,655 (13) 2,867,508

80,869,861 33,664,379 58 227,729,103 224,941,194 1 371,721,258

6a. Other Direct Cost.

Business Development 100,000 261,388 (161) 719,985 1,437,908 (100) 2,473,808.00

QHSE 1,270,614 2,744,235 (116) 3,280,688 5,437,747 (66) 393,700.00

Permit 573,318 - 100 1,662,954 - 100 -

Transport and Travelling 152,034 - 100 399,948 - 100 -

2,095,966 3,005,623 (43) 6,063,576 6,875,655 (13) 2,867,508



Page 11 of 21

6b. Consumables

Azura 10,800 50,000 (362.96) 533,660 50,000 90.63 310925

Addax Petro - - 65,804 - 65,804

BASF - 4,200,000 - -

Belbop (Conoil) 6,000,000 - 100.00 6,000,000 - 100.00

Joeny Nigeria Ltd - - 1,183,450

Nigerstar 7 9,200 260,000 (2,726.09) 116,050 260,000 (124.04) 286,400

Orient Petroleum - 210,000 (100.00) - 347,700 (100.00) 347,700

SPDC- (Asbestos Local Package) - - 17,100,725 - 100.00 2,897,600

NNPC Consumables - - 240,000 205,750 100.00 205,750.00

TDU - 735,000 - 60,300 9,593,500 100.00 39,593,500.00

SNEPCO 112,000 36,050 67.81 240,000 392,750 (63.65) 403,150.00

6,132,000 1,291,050 78.95 28,490,735 10,915,504 61.69 45,294,278.85

7 Other Income (note 7)

Sales of Secondary Products 8,558,900 1,426,000 83.34 13,531,100 4,175,500 69.14 5,339,250.00

Equipment Supply & Maintainance - 14,598,000 (100.00) 1,510,000 17,198,000 (1,038.94) 17,198,000.00

Interest Gain - 7,965 (100.00) 33,078 7,965 75.92 106,161.66

8,558,900 16,031,965 (87.31) 15,074,178 21,381,465 (41.84) 22,643,411.66

8 Finance cost

Interest on loans 1,000,000 1,841,960 (84.20) 21,000,000 7,400,937 64.76 3,150,000

Other financial charges - - - 1,441,198 1,832,939 (27.18) 4,156,303

1,000,000 1,841,960 (84.20) 22,441,198 9,233,877 58.85 7,306,303

9 Foreign currency translation difference

This represents exchange difference arising from translation of foreign currency transactions during the period under review.

The following rates were applied : N306.50 TO $1 USD, N346.24 TO €1 EURO and N400.89 TO £1 GBP.

Exchange Gain or (Loss) 3,573,538 (41,437.49) 101.16 15,451,158.08 5,845,977.57 62.16 (11,249,990)

10. Staff costs

Medical expenses 1,544,925 1,149,059 26 3,876,576 2,982,146 23.1 5,377,703.0

Employer's pension contribution 1,357,238 1,405,726 (4) 4,082,338 4,138,264 (1.4) 5,522,064.0

Salaries and allowances 13,878,321 15,084,296 (9) 41,586,357 44,789,340 (7.7) 60,182,532.0

Staff welfare 296,000 296,563 (0) 1,116,396 941,213 15.7 2,977,831.0

17,076,483 17,935,644 (5) 50,661,666 52,850,961 (4.3) 74,060,130.0

This represents interests charged by Guaranty Trust Bank Plc and Wema Bank Plc on invoice

discounting and loan facilities obtained respectively by The Initiates Plc.



Page 12 of 21



ACTUAL HISTORICAL ACTUAL HISTORICAL ANNUAL


N N % N N % N

11. Depreciation and impairment loss

Depreciation 1,783,274.99 1,561,445.61 12 5,327,663 4,599,933 14 5,852,221

1,783,274.99 1,561,445.61 12 5,327,663 4,599,933 14 5,852,221

12. Administrative expenses

Directors' remuneration 3,060,000 3,060,000 - 9,180,000 9,180,000 - 12,913,200

Directors' allowances and expenses - 1,687,500 (100) - 1,687,500 (1.0) 8,016,097

Board and AGM 1,078,007 4,862,151 (351) 1,973,343 7,192,327 (264.5) 2,250,000

Transport and travelling expenses 382,500 857,602 (124) 1,914,887 2,095,759 (9.4) 3,522,059

Professional fees 415,750 1,477,423 (255) 1,970,259 4,035,707 (104.8) 6,775,709

Electricity (PHCN) 119,746 345,354 (188) 414,878 1,274,769 (207.3) 1,419,288

Fuel and diesel 2,153,864 2,270,447 (5) 6,926,978 5,688,644 17.9 8,943,269

Licenses/Permits and levies 162,000 249,000 (54) 1,626,425 922,455 43.3 484,455

Donation & Gift 300,000 - 100 662,500 350,000 47.2 640,000

Repairs and maintenance 645,415 2,118,935 (228) 1,812,885 4,855,160 (167.8) 5,685,040

Printing and stationery 180,394 382,802 (112) 619,205 951,552 (53.7) 1,128,020

Insurance 894,712 854,443 5 3,383,524 3,723,368 (10.0) 4,609,178

Telephone and postage 126,600 348,200 (175) 416,800 632,900 (51.8) 1,124,523

Entertainment 378,850 166,000 56 703,600 758,730 (7.8) 839,530

Internet expenses 273,400 1,184,300 (333) 767,785 2,346,779 (205.7) 2,277,804

Bank charges 394,179 1,007,886 (156) 1,957,411 1,890,801 3.4 2,224,584

Training expenses 100,000 262,000 (162) 200,000 292,000 (46.0) 392,000

Local content tax 476,958 1,502,081 (215) 3,361,694 4,514,029 (34.3) 5,856,015

Leave Allowance 1,177,100 - 100 2,137,400 - 100.0 902,300

Subscription 268,670 305,000 (14) 2,421,422 902,300 62.7 2,404,200

Meal expenses 689,300 596,450 13 1,921,850 1,855,100 3.5 12,559,000

Corporate social responsibility - - - - 12,559,000 (100.0) 715,784

Advertisement - 355,000 - 342,847 715,784 (108.8) 7,188,072

Audit fee 1,000,000 3,000,000 (200) 3,000,000 3,000,000 - 2,500,000

Office Consumables 1,008,925 859,321 15 2,011,150 1,987,131 1.2 2,531,321

15,286,368 27,751,895 (82) 49,726,842 73,411,793 (47.6) 97,901,448



Page 13 of 21


PERIOD ENDED 30TH SEPTEMBER 2019

13. Property, plant and equipment

The carrying amount of property, plant and equipment is stated as follows;

Cost/valuation Depreciation and Carrying

impairment loss amount

N N N

Land and Building 186,116,565 (11,869,298) 174,247,266

Plant and machinery 566,826,817 (89,576,998) 477,249,819

Furniture and fittings 5,528,500 (4,906,149) 622,351

Office & HSE equipment 10,216,210 (5,973,264) 4,242,946

768,688,092 (112,325,709) 656,362,383

Land and

Building

Plant and

Machinery

Furniture and

Fittings

Office & HSE

Equipment Total

13.1Cost/valuation N N N N N

At 1 January 2019 185,592,565 541,211,125 5,528,500 9,586,210 741,918,400

Additions 524,000 25,615,692 - 630,000 26,769,692

At 30th Sept. 2019 186,116,565 566,826,817 5,528,500 10,216,210 768,688,092

13.2 Depreciation and impairment loss

At 1 January 2019 (9,401,753) (68,663,901) (3,524,162) (4,495,132) (86,084,948)

Charge for the year (2,467,545) (20,913,097) (1,381,987) (1,478,132) (26,240,761)

At 30th Sept. 2019 (11,869,298) (89,576,998) (4,906,149) (5,973,264) (112,325,709)

Carrying amount

At 30th Sept. 2019 174,247,266 477,249,819 622,351 4,242,946 656,362,383

At 30th Sept. 2018 142,230,256 517,893,213 504,302 4,453,442 665,081,212

At 31st December 2018 176,190,810 472,547,225 2,004,338 5,091,078 655,833,451



Page 14 of 21



ACTUAL HISTORICAL

YTD 2019 YTD 2018 CHANGE 2018

N N % N

14. Inventories

Technical material 3,139,200 - 100 699,208

QHSE inventory 401,180 586,203 (46) 257,190

Stationeries 440,205 175,628 60 1,180,219

Diesel 1,968,199 955,424 51 1,571,750

5,948,784 1,717,255 71 3,708,367

15. Trade and other receivables

Trade receivables 207,425,699 229,848,169 (11) 280,541,407

Staff loan and advances 1,026,721 2,162,470 (111) 2,487,532

208,452,420 232,010,639 (11) 280,541,407

16. Cash and cash equivalents

Cash and cash equivalents represent cash in hand and at bank as at end of the period.

Cash in hand 121,751 2,717,385 (2,132) 125,395

Cash at bank 1,044,759 53,655,312 (5,036) 78,929,873

1,166,510 56,372,697 (4,733) 79,055,268

17. Current tax assets

This represents withholding tax receivable in the year. 100,945,123 95,892,438 5.01 97,218,003

18. Other Current tax assets

Prepaid insurance 2,217,318 490,000 78 6,432,901

Third Party 1,777,299 1,565,608 12 -

Prepaid Medicals 3,572,159 2,265,725 37 -

TIL UGANDA 6,091,601 876,260 86 4,207,331

13,658,377 5,197,593 62 10,640,232



Page 15 of 21



ACTUAL HISTORICAL


N N % N19. Share capital

Authorised: (note 19.1)

900,000,000 ordinary shares of N0.50 each 450,000,000 450,000,000 - 450,000,000

Issued and fully paid: (note 19.2)

889,981,552 ordinary shares of N0.50 each 444,990,776 444,990,776 - 444,990,776

19.1 Authorized share capital

19.2 Paid up share capital

20. Share premium

At 1 January 17,780,000 17,780,000 - 17,780,000

At 30th Sept 2019 17,780,000 17,780,000 - 17,780,000

21. Revaluation Reserve

At 1 January 82,210,528 83,410,528 - 82,210,528

At 30th Sept 2019 82,210,528 83,410,528 - 82,210,528

22. Deffered Tax Liability

At 1 January 54,377,713 29,276,182 46 29,276,182

Movement in the year - 12,550,766 (100) 25,101,531

At 30th Sept 2019 54,377,713 41,826,948 23 54,377,713

At the 12th - 16th Annual General Meeting held on 23rd March 2015, the authorized share capital of the

company which was formerly 350,000,000 ordinary shares of N1.00 each was converted to

900,000,000 ordinary shares of N0.50 each.

At the 12th - 16th Annual General Meeting held on 23rd March 2015, the paid up share capital of the

company was increased by the capitalization of dividends for 2013 and 2014 and also issue of bonus

shares to shareholders.

On 1 April 2008, the company's property, plant and equipment were revalued by Messrs. Jide Taiwo &

Co., on the basis of depreciated replacement cost to arrive at open market value of N76,586,905. The

revalued amount was incorporated in the 2008 financial statements.The surplus of N45,909,136 arising

therefrom was transferred to revaluation reserve account.On 9 July 2015, the company's property, plant and equipment were revalued by Messrs. Ubochi Eleh &

Co., on the basis of open market value of N445,148,000. The revalued amount was incorporated in

these financial statements.The surplus of N37,501,392 arising therefrom was transferred to revaluation

reserve account.



Page 16 of 21



ACTUAL HISTORICAL


N N % N23. Retained earnings

At 1 January 163,619,341 169,621,532 (4) 169,621,532

Prior year adjustments - - - (61,383,246)

Dividend paid / Proposed - (35,599,262) (100) (35,599,262)

Profit for the period 19,279,237 69,598,029 (261) 102,230,307

182,898,578 203,620,299 (11) 174,869,331

Other comprehensive income:Foreign currency translation difference 15,451,158 5,845,978 62 (11,249,990)

At 30th Sept 2019 198,349,736 209,466,277 (6) 163,619,341

24. Trade and other payables

Trade payables 54,499,304 132,445,003 (143) 140,812,003

Dividend payable (note 24.1) 45,958,411 35,599,262 23 1,459,333

Accruals (note 24.2) 23,958,235 51,052,124 (113) 6,788,294

124,415,950 219,096,389 (76) 149,059,630

24.1. Dividend payable

At 1 January 1,459,333 526,677 64 526,676

Unclaimed dividends - - - 932,657

Prior Year Dividends approved during the year (note 24.1.1) 44,499,078 35,599,262 20 35,599,262

Payments made during the year - - - (35,599,262)

At 30th Sept. 2019 45,958,411 35,599,262 23 1,459,333

24.1.1

24.2 Accruals

21017 · Accrued expenses 971,000 - 100 2,547,500

22302 · Unclaimed dividend 598,237 - 100 -

21001 · Accrued Auditors Fees 3,000,000 3,000,000 - -

21004 · Accrued Direct Wages - 305,600 (100) -

21006 · Accrued Directors' Fees 65,000 1,752,500 (2,596) 4,000,000

21007 · Accrued Directors Allowance - 392,000 (100) 240,794

21009 · Accrued Performance Bonus 20,550 20,550 - -

2101433 · NPDC Consumables 700,550 1,660,550 (137)

2101432 · TDU Consumables 10,856,029 2,770,769 74

2101431 · SPDC Asbestos - 25,936,165 (100)

2101432 · Provision for Treatment of Stored Waste 7,746,869 15,213,990 (96) 26,702,161

23,958,235 51,052,124 (113) 6,788,294

24.2.1 Provision for Treatment of Waste: This is total provision made for waste in storage pit.

210143 · BELBOP Consumables 6,000,000 - 100 -

210145 · Rentals - 498,000 (100) 202,161

210144 · Direct Wages - 3,391,905 (100) 1,500,000

210142 · Security Expenses 1,666,000 1,690,000 (1) 25,000,000

210141 · Haulage & Disposal 80,869 9,634,085 (11,813)

Total Prov. for Treatment of Waste 7,746,869 15,213,990 (96) 26,702,161

At the BOD Meeting held on 25 April 2019, 5 kobo per ordinary share was approved out of the profit for the year

ended 31 December 2018, to be paid to Shareholders whose names during the AGM.



Page 17 of 21



ACTUAL HISTORICAL


25. Current tax liabilities N N % N

22101 · Company Income Tax 1,859,084 1,859,296 (0)

22103 · Withholding Tax Payable 10,644,471 17,600,585 (65) 5,063,551

12,503,556 19,459,881 (56) 5,063,551

26. Other current tax liabilities

Pay As You Earn 1,697,937 1,304,534 23 4,688

Value Added Tax (VAT) Liability 8,109,359 6,578,974 19 3,772,983

Value Added Tax - Customers 23,412,522 23,617,124 (1) 25,972,066

33,219,818 31,500,633 5 29,749,737

27. Employees' benefits

Pension Contr Payable-Employees 1,684,044 703,231 58

Pension Contr Payable- Employer 2,001,477 587,938 71 118,248

Defined contribution plans (note 27.1) 3,685,521 1,291,169 65 118,248

27.1 Defined contribution plans

At 1 January 118,248 21,661 0.82 2,669,645

Provision for the period 3,685,521 1,291,169 0.65 10,489,374

Payments made during the period (118,248) (21,661) 0.82 (13,040,771)

At 30th Sept 2019 3,685,521 1,291,169 0.65 118,248

28. Short term borrowings

28.1 Loan facility from Other Sources

At 1 January 120,000,000 - 100

Loan facility duing the period 25,000,000 - 100 120,000,000

Repayments in the period (130,000,000) - 100 -

At 30th Sept 2019 15,000,000 - 100 120,000,000

These represent pension contribution. It is computed as follows: 8% of the employee's basic salary, housing and

transport is contributed monthly by the employee and 10% of the employee's basic salary, housing and transport

is contributed by the employer. The monthly contribution is remitted to the Pension Fund Administrators in

accordance with the Nigerian Pension Reform Act 2014.

In July 19th 2019 , a short term loan facility of N25 Million was obtained from other Sources by The Initiates Plc to finance the

conclusion of Asbestos waste transhipment contract from SPDC for a tenor of 90 days with interest rate of 12.5% per month.



Page 18 of 21





29. Number Number % Number Number Number

Below N3,000,000 - -

N3,000,001 - N7,000,000 - -

N7,000,001 and above 1 1 - 1 1 -

1 1 - 1 1 -

29a Employees Number Number

Average numbers of persons employed during the year:

Management 3 3 - 3 3 -

Senior Staff 14 28 (100) 14 14 -

Junior Staff 35 24 31 35 36 (3)

52 55 (6) 52 53 (2)

29b Aggregate payroll costs N N % N N %

Salaries and allowances 17,076,483 17,935,644 (5) 50,661,666 52,850,961 (4)

emoluments within the bands stated were: Number Number % Number Number %N100,000 - N500,000 20 10 50 20 10 50

N500,001 - N1,000,000 10 20 (100) 10 20 (100)

N1,000,001 - N1,500,000 7 6 14 7 6 14

N1,500,001 and above 15 19 (27) 15 19 (27)

52 55 (6) 52 55 (6)



Page 19 of 21



30. Guarantees and other financial commitments

The company did not guarantee any loan to the directors and officers of the company during the period.

31. Financial commitments

32. Contingent liabilities

There were no contingent liabilities arising from litigations in the ordinary course of business.

33. Capital commitments

There were no capital commitments at 30 September 2019.

34. Reclassification of Balances.

Certain comparative balances have been reclassified to provide a more meaningful comparison.

35. Events after the reporting date

36. Earnings per Share

Earning per share are based on profit after tax and number of fully paid ordinary shares.



N N % N N %

Profit attributable to ordinary shareholders (in naira) (219,138) -20,430,491 (9,223) 19,279,237 69,598,029 (261)

Number of ordinary shares issued and fully paid for basic earnings per share (in number) 889,981,552 889,981,552 - 889,981,552 889,981,552 -

Number of ordinary shares issued and fully paid for diluted earnings per share (in number) 889,981,552 889,981,552 - 889,981,552 889,981,552 -

Basic earnings per 50 kobo share (0.00) - 0.02 (9,223) 0.02 0.08 (261)

Diluted earnings per 50 kobo share (0.00) (0.02) (9,223) 0.02 0.08 (261)

There were no events after reporting date which could have had material effect on the state of affairs of the company at 30 September 2019 and on the total

comprehensive income for the year ended on that date which have not been adequately provided for or recognized.

The Directors are of the opinion that all known liabilities and commitments which are relevant in assessing the company's financial statements have been taken

into account in the preparation of the financial statements under review.



Page 20 of 21

STATEMENT OF VALUE ADDED


ACTUAL HISTORICAL ACTUAL HISTORICAL 2018

Q3 2019 Q3 2018 YTD 2019 YTD 2018 N

N % N % N % N %700,798,753

Turnover 115,723,804 55,514,670 381,592,122 457,835,131 22,643,412

115,723,804 55,514,670 381,592,122 457,835,131 723,442,165

Less: Bought in materials and services

Imported 68,293,750

Local 80,869,861 33,664,379 227,729,103 224,941,194 413,499,220

Value added 34,853,943 100.00 21,850,290.37 100.00 153,863,019 100 232,893,937 100 241,649,195 100

Applied as follows:

To pay employees' salaries wages and 33,362,852 95.72 47,529,500 217.52 122,829,707 79.83 135,496,631 58.18 74,060,130 31

other benefits

To pay Government taxation (73,046) (0.21) (6,810,164) (31.17) 6,426,412 4.18 23,199,343 9.96 18,782,621 8

To provide for enhancement of

assets and expansion:

- deferred tax - - - - - - 25,101,531 10

- depreciation of fixed assets 1,783,275 5.12 1,561,446 7.15 5,327,663 3.46 4,599,933 1.98 32,724,596 13

- retained in the business (219,138) (0.63) (20,430,491) (93.50) 19,279,237 12.53 69,598,029 29.88 90,980,317 38

34,853,943 100.00 21,850,290 100.00 153,863,019 100.00 232,893,937 100.00 241,649,195 100

Note: "Value added" represents the additional wealth which the company has been able to create by its own and its employees' efforts. This statement

shows the allocation of that wealth amongst employees, capital providers, government, and that retained for future creation of wealth.



Page 21 of 21

FIVE YEARS FINANCIAL SUMMARY

31ST DECEMBER

2018 2017 2016 2015 2014

N N N N N

Assets employed

Non-current Assets 655,833,451 678,098,211 587,311,661 510,297,266 396,615,765

Other non-current assets - - - 10,000,000 6,778,298

Current Assets 473,650,809 465,676,462 271,955,506 218,027,195 288,667,790

Total Assets 1,129,484,260 1,143,774,673 859,267,167 738,324,461 692,061,853

Equity

Issued capital 444,990,776 444,990,776 444,990,776 444,990,776 341,490,777

Share premium 17,780,000 17,780,000 17,780,000 17,780,000 17,280,000

Revaluation reserve 82,210,528 83,410,528 83,410,528 83,410,528 45,909,136

Retained earnings 163,619,341 169,621,532 152,938,913 33,869,063 94,800,809

708,600,645 715,802,836 699,120,217 580,050,367 499,480,722 Liabilities

Non-current liabilities 54,377,713 29,276,182 46,533,814 8,268,457 -

Current liabilites 366,505,902 398,695,655 113,613,136 150,005,637 192,581,131

Total liabilities and equity 1,129,484,260 1,143,774,673 859,267,167 738,324,461 692,061,853

Turnover 700,798,753 664,901,943 648,144,614 345,766,927 611,828,467

Profit before taxation 146,114,459 73,466,455 203,183,451 60,051,096 132,655,217

Taxation (43,884,152) 8,511,955 (65,052,877) (22,883,903) (36,485,715)

Profit after taxation 102,230,307 81,978,410 138,130,574 37,167,193 96,169,502

Other Comprehensive income

Foreign currency translation difference (11,249,990) (16,504,401) (2,507,724) - 13,606,283

- - - 37,501,392 -

Other comprehensive income for the year (11,249,990) (16,504,401) (2,507,724) 37,501,392 13,606,283

Total comprehensive income for the year 90,980,317 65,474,009 135,622,850 74,668,585 109,775,785

Total Dividend Paid /Proposed 44,499,078 35,599,262 26,699,446 14,805,821 50,000,000

Dividend Paid / Proposed per share (kobo) 5 4 3 2 15

Basic earnings per share (kobo) 11 9 16 4 28

Diluted earnings per share (kobo) 11 9 16 4 11

Net assets per share (kobo) 80 80 79 65 146

Net assets per share (kobo) 80 79 65

Basic earnings per share are calculated on the profit after tax and the number of fully paid ordinary shares at the end of each year.

Net assets per share are based on the net assets and the number of fully paid ordinary shares at the end of each year.

Diluted earnings per share are calculated on profit after tax for each of the years and number of fully paid ordinary shares as at 31 December 2017.

Revaluation surplus on property, plant and

equipment

2019 - nigerian stock exchange · 2. nine months (jan-september 2019) performance 2.1 revenue tip...

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