Julius Berger Nigeria Plc, a planning and constructing a group of companies with a market capitalization of more than ₦30 billion, involving in all kinds of civil engineering works with seven subsidiaries, released its Consolidated Unaudited Financial Statements the year ended 31st December 2020 to the investing public on January 26th, 2021.
– From the delivered result, the firm saw a 8.35% abatement in income from ₦264.56bn in FY’2019 to ₦242.46bn in FY’2020. This was driven by a 8.35% lessening in the incomes from their essential topographical market (Nigeria, Europe, and Asia).
– Also, the common works, building works, and administrations delivered at the firm plunged by 9.68%, 9.29%, and 4.28% individually, as this could be the impact of Covid-19 pandemic lockdown that shortened the numerous capital undertakings.
– The Group in its Other Gains and Losses diminished by 35.34% because of the abatement in the Foreign Exchange Gains to N2.55 billion in FY’2020 from N1.88 billion. Likewise, the Group saw a 25.55% expansion in its Net Finance Cost to N7.39 billion in FY’2020 as against N5.90 billion in the earlier year of 2019.
– However, there were decreases in some key line costs, for example, Administrative Expenses (from N37.03 billion to N29.99 billion) and Impairment Loss on Trade and Tax Receivables (from a deficiency of N2.97 billion to an addition of N713.78 million).
– Despite the decrease in some critical costs as referenced over, the Group’s Profit Before Tax (PBT) at long last lessens by 71.92% from (₦14.68bn to ₦4.12bn) and Profit After Tax (PAT) additionally shrivels by 86.83% (from ₦10.34bn to ₦1.36bn).
– Furthermore, the organizations’ Return on Asset (ROA) and Return on Equity (ROE) both declined to 0.004x and 0.03x from 0.03x and 0.24x in the relating time of 2019.
– Conclusively, the speculators’ Earnings per Share (EPS) diminished by 16.26% to print at ₦4.79 in the year under audit as against ₦5.72 at the earlier year.
As a support against difficult situations, Julius Berger said in September it would fan out into agro-handling, wandering into a subsector unmistakably unique in relation to its essential development business in a move the board commented had been educated by “the arising advancements, political, efficient and primary in Nigeria and the resultant changes by the legislatures.”
The administration expressed,
“We have severally prompted the Market that Julius Berger will be investigating broadening openings, in light of the arising improvements, political, practical and underlying in Nigeria and the resultant changes by the Governments.
We would prompt the Exchange and the Capital Market that the Board of Julius Berger at its gathering hung on September 22, 2020, endorsed a broadening opportunity for the Company in Agro-handling.