John Holt Tops Performers with 60% Price Appreciation
Nigerian conglomerate John Holt has been attracting equities investors’ attention in the recent past weeks on the Nigerian Exchange. Demand for the stock has remained in an uptrend since the conglomerate returned to profitability.
In the equities market, stock buyers took additional bets on John Holt on expectation that the conglomerate company would keep earnings growth alive in the coming quarters. Data from the Nigerian Exchange showed John Holt price climbed by 60.5% week on week to N7.72, from N4.81 printed at the previous week’s close.
John Holt has been unrelenting and has mastered the art of survival in Nigeria’s tough operating environment. The recent trading pattern on the company stocks suggests investors are betting on the confidence and experience of the management to take John Holt across the red lines in the economy.
At the current price level, the market placed N3 billion on John Holt’s 389 million shares outstanding on the Nigerian Exchange following significant volume transactions conducted in the market.
Earnings Scorecard
John Holt Plc returned to profitability at the end of the fourth quarter of the financial year 2023/24, details from the conglomerate company’s unaudited financial statement revealed.
Its profit after tax settled at N2.39 billion, reversing N1 billion net loss the company reported at the end of the fourth quarter of 2022/23. Over a 12 months, John Holts Plc grew revenue by 82% year on year to N3.333 billion from N1.834 billion in the equivalent period in 2022/2023.
The company’s revenue growth was principally driven by an increase in income generated from technical products and leasing services.
Revenue from technical products and leasing services surged to N2.920 billion in 12 months, more than 94% above N1.504 billion reported in the comparable period. However, cost of sales grew faster, depleting the group profit margin. Costs of sales grew by 106% to N2.713 billion from N1.319 billion.
As a result of the heavy load, gross profit margin increased by 20% to N620 million from N515 million in the comparable period. John Holt major earnings boost came from other operating income lines in the period. Details from the conglomerate company’s financial scorecard revealed that other operating income grew by 436% year on year to N3.146 billion from N587 million.
Its FX loss also moderated to N547 million from N1.286 billion in the comparable period, down by 57% year on year. John Holt shareholders’ funds increased by 124% year on year to N4.313 billion from N1.923 billion in the last 12 months. #John Holt Tops Performers with 60% Price Appreciation Oil Rises on Middle East Tensions, OPEC+ Output Decision
