NTS results cause concern

NATIONAL Tyre Services released a lukewarm set of results for the interim period ending September 30 in which it recorded a turnover of $335,7 billion from $2,5 billion, a growth of 13 088%. Operating profit rose 9 050% to $82,8 billion from $900 million.

Earnings were boosted by gains on fair value adjustment of investment properties of $185,5 billion compared $15,9 million, a measure that saw the latter overtaking operating profit in contribution total net income.

There was a net finance income of $8,8 billion from $30,7million leading to a profit before tax of $277,1 billion from$951 million and attributable earnings of $209,8 billion from $650million, a growth of 32 000% over comparative year.

However if we are to strip out the fair value gains, we get a profit after tax of $97b, a scenario that does not bode well for NTS.

Basic earnings per share were $838,73 from $2,64 while diluted Earnings Per Share were $830,61 fro, $2,56.

Given the challenging economic environment obtaining the board decided to pass dividend.

The balance sheet improved to $335, 6 billion from $1,53 billion with investments and investment property constituting 61% of the asset base.

Post published in: Economy

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