Ashaka Cement has released its audited financial statements for 2016 via the Nigerian Stock Exchange (NSE) with profit before tax (PBT) falling by 17 percent to N2.7 billion when compared with 2015 result.
The decline in PBT was due to a combination of factors including a 25 percent reduction in finance income to N873 million, a 112 percent increase in finance cost, coupled with a marginal reduction in revenue of N17.35 billion.
While it cut down operating expenses by 51 percent in 2016 to N2.5bn, a 44 percent increase in tax expenses contributed to a lower profit after tax posted.
Profit for the period fell by 27 percent to N2.0 billion from N2.8 billion recorded in 2015. The company’s earnings per share thus fell to 90 kobo from 123 kobo in 2015.
The company is undergoing a voluntary delisting process from the Nigerian Stock Exchange.
The company had said neither it nor any shareholders were benefiting from the continued listing.
Ashaka Cement is offering shareholders an option to either trade their shares on the NSE through their nominated stockbroker or receive 57 shares of Lafarge Africa Plc in exchange for 202 Ashaka Cement shares and a cash consideration of N2 per every AshakaCem exchanged.
Ashaka Cement is listed on the Main Board, and under the Industrial goods sector of the NSE with market capitalization of N20.2 billion and 2.24 billion shares outstanding.
The company’s shares recorded a decline of 47 kobo on Wednesday to close at N9.03 per share.