C&I Leasing Gains 50% on Renew Investor’s Sentiment
The share price of C&I Leasing Plc rallied strongly, gaining about 50% over five trading sessions as equities investors showed interest in the group’s future earnings stream.
According to data from the Nigerian Exchange, the market value of C&I Leasing group of companies serving clients through three divisions: Fleet Management, Outsourcing and Marine Services surged by 49.55% in 5 days.
The company’s share price accelerated from N3.33 at the beginning of the week to N4.98 on Friday. Its stock market valuation advanced to N3.92 billion; spread over about 782 million outstanding shares.
MarketForces Africa review showed that C&I Leasing’s total equity or shareholders’ fund strongly increased to N26.265 billion as of September 2023 from N7.961 billion in the comparable period.
A detailed review of the company’s figure indicated that its total equity spiked as a result of an increase in statutory reserve (N1.875bn) retained earnings (N4.583bn), foreign currency translating reserve (N12.649bn)
In its nine months of unaudited results for 2023, the group disclosed that PMT Global Investment Nigeria Limited remains its single largest shareholder, controlling 26.84% interest. This was followed by 19.74% interest held by CIL Acquico Limited while Petra Properties owned 5.16%.
Its financial scorecard for 9 months 2023 earnings season showed that C and I leading profit increased to N414 million, a steep jump of about 254% from about N117 million the company posted in the comparable period in 2022.
Solid growth in the company’s bottom line was driven by growth in gross earnings. Its financials showed that the group’s gross earnings rose to N16.33 billion from N13.135 billion, translating to 24.3% year-on-year growth in topline performance.
Its earnings per share grew to 42 kobo at the end of the period, from 40 kobo 12 months earlier. However, there is an exposure to share dilution. C&I Leasing disclosed that there were 1,769,146,167 potential dilutive shares as of September 2023.
This brought diluted earnings per share to 19 kobo from 18 kobo. The share relates to $12,486,143,.09 unsecured variable coupon convertible notes issued by Aureos Africa LLC on 11 January 2010 for a period of five years.
The company is now wholly owned by Abraaj Advisers Nigeria Limited. The interest to be paid on the notes, is equivalent, in any period, to the dividend declared by C&I Leasing Plc and payable on the equivalent number of ordinary shares underlying the loan stock at 31 December.
Management disclosed that the company intended to convert the loan notes to its equity and had elected to include the notes as a deposit for shares.
The amount outstanding on 31 December is US$10,000,000.00. The convertible notes have however been bought over by Peace Mass Transit (PMT) in January 2021. The note has been converted to equity in December 2022, C&I Leasing explained in its unaudited result. Futureview US Dollar Fund Return Hits 7.42%