Julius Berger Returns To Profit, Nets N2.57bn In 2017, Offers N0.25 Dividend

Nigeria’s construction giant, Julius Berger Nigeria Plc reported a return to profit in the 2017 financial year, posting N2.572bn, compared to a loss of N2.398bn in the prior year, helped by significant growth in “other gains” and investment income.
The board has therefore recommended a dividend per share of 25 kobo only, representing a total payout of N330m, for consideration and approval by shareholders at the annual general meeting slated for June 21, 2018 in Abuja.
The fit was achieved, according to the result submitted through the Nigerian Stock Exchange (NSE) on Friday, came despite the 2.08% limp to N141.89bn revenue from N138.993bn in 2016.

Segmental analysis of the revenue showed that the bulk came from civil works which fetched N74.301bn, up from N72.783bn; and building works, which rose from N58.872bn to N60.099bn; while income from services remained flat at N7.489bn from N7.336bn.
More specifically, construction contracts accounted for N135.29bn revenue, up from N131.657bn; while rendering of services came to N6.599bn from N7.336bn.

Cost of sales jumped to N97.591bn from N84.767bn; leaving gross profit at N44.298bn, down from previous N54.226bn.
Marketing expenses dropped from N53.327m to N47.851m; just as administrative expenses dropped slightly from N37.38bn to N35.564bn; resulting in operating profit of N8.686bn, down by N8.106bn or 48.27% from N17.792bn in the 2016 full year.

Investment income boosted the company’s finances by 295.7% from N284.681m in the preceding year to N1.126bn, mainly from the N1.028bn dividend received, an item head that did not exist in 2016; even as interest income dropped from N284.681m to N97.932m.
Other gains improved to N4.076bn from N1.443bn, representing a N2.633bn or 18246%; earned mainly from the N3.215bn profit from sale of property, plant and equipment, compared to the previous N4.495bn. Net foreign exchange gains stood at N185.943m from the N5.704bn loss; ahead of the N674.93m sundry income, as against the N2.652bn.

Finance cost rose to N6.9bn from N5.784bn, out of which interest and overdraft facilities amounted to N5.411bn from N3.961bn; interest on loan dropped slightly from N1.498bn to N1.327bn; while other finance charges fell from N324.52m to N161.176m.
Foreign exchange acquisition loss fell from N14.234bn from N3.249bn; following which profit before tax stood at N3.739bn from a a loss of N1.498bn. Profit from the civil works segment fell by a significantly 48.27% to N6.745bn from N13.04bn; just as building works profit dropped to N1.716bn from N3.319bn, representing a 48.29% decline; while services dropped from N432.669m, from N223.818m
Net profit for the period represented 207.22% improvement over the N2.398bn net, represented Earnings Per Share of N3.61, from the N3.36 loss.

Dividend payment is slated for June 22 for shareholders whose names are in the register when it is closed from June 4 to 6, 2018, according to a notice by Mrs. Cecilia Madueke, Julius Berger’s Company Secretary.

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