By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)- E-business solutions development company, Courteville Business Solutions Plc said on Wednesday its profit after tax (PAT) for the period ended December 31, 2015 declined 79.34 percent to N65.62 million from N317.65 million recorded a year ago.
Similarly, pretax profit of the e-business solutions company dropped 59.65 percent to N184.40 million from N457.03 million posted in the same period of 2014.
However, revenue of the company increased from N1.35 billion in 2014 end to N1.49 billion declared in 2015 audited year end; showing an increase of 10.07 percent in the review period, Courteville said in a filing with the Nigerian Stock Exchange (NSE).
The company had in later January of this year issued a profit warning, “following the review of its 2015 draft management accounts, the board of Directors of Courtville Business Solutions Plc wishes to inform its esteemed shareholders and potential investors that that its 2015 full year results are expected to record significant shortfalls compared to 2014 financial year.
The shortfalls are essentially due to deterioration in the quality of receivables, investments and the worsening exchange rate. In line with the principle of prudence, the company has made additional provisions and write-offs in the third and fourth quarters of 2015 financial year. These additional write-offs amount to about N140 million.
The continued fall in the national reserves as a result of low foreign earnings from crude oil has meant a dwindling allocation to State Governments, which has impacted negatively on their ability to meet obligations and has in turn impacted on our business, as the company’s clients are predominantly State Governments and Government Agencies.
However, this also necessitates the States to find other creative ways of growing their IGR, which should create a boost for the company’s service offerings.
Our esteemed shareholders and potential investors should however be assured of an improved performance based on our expansion programme, while we also expect our 2016 operations to reflect any improvements in the economy,” the company had said in a statement.
