Ronchess Global Resources Posts N1.56bn Profit, Revenue Slumps
Ronchess Global Resources Plc, a Nigerian construction and real estate company, posted about N1.56 billion in the financial year 2022, down from N5.062 billion declared by the company in 2021, according to a regulatory filing on the Nigerian Exchange.
Valued at N7.371 billion, the construction company’s ownership structure indicates that Jackson Ukuevo family controls 85.90% of the 91,000,000 shares outstanding in the local bourse at N81 per unit.
The company which was listed on the growth board of the Nigerian Exchange saw a strong decline in revenue in the financial year. The company’s revenue slumped to N7.211 billion, according to the company’s report.
This was 52.19% below the total sum of N15.082 billion in revenue declared in 2021. A look into the company’s cost of sales indicates that there was a slowdown in Ronchess Global Resources’ operational activities in the period.
Figures in the company’s financial statement show that cost of sales declined more than 50% to N3.062 billion from N6.137 billion in 2021. Thus, accelerated decline in sales revenue than costs clouded profit margin.
The financial scorecard indicated that Ronchess’ gross margin which printed at N4.148 billion in 2022 was 53.63% lower when compared with the previous year’s performance. In 2021, Ronchess Global Resources’ profit margin peaked at N8.945 billion.
On its asset side, Ronchess Global Resources’ balance sheet size expanded to N23.802 billion from N17.233 billion in the comparable year in 2021. The growth in the balance sheet was driven by a significant surge in investment in properties, plants and equipment – there was asset revaluation gained of N4.7 billion.
An increased total asset was supported by an increase in trades and receivables balance including prepayments while investment in short-term funds declined to N2.55 million from N30 million, indicating a strong cash conversion.
Management declared that Ronchess Global Resources Plc with a free float value of N12,831,000 as of December 2022, is compliant with the Exchange’s free float requirements for companies listed on the Growth Board. # Ronchess Global Resources Posts N1.56bn Profit, Revenue Slumps
