Aluminium Extrusion, one of the subsidiaries of Tower Aluminium Nigeria, posted a big increase in comprehensive income for the period ended December 31, 2018, buoyed by a surplus recorded in its asset revaluation exercise.
The Owerri-based manufacturer and marketer of extruded aluminium products and roofing sheets recorded a turnover of N2.73 billion in 2018 full year, 6.1 percent increase, compared to the N2.57 billion revenue posted for 2017.
The Aluminium Company reported an uptick in cost of sales of 7.2 percent to N2.39 billion as gross margin fell by almost one percentage point to 12.34 percent compared to 13.24 in the preceding year.
Finance Cost, specifically interest overdraft of the manufacturer dipped 8 percent to N42.55 million in 2018 full year as against N46.27 million borrowing cost in the corresponding period of 2017.
Aluminium Extrusion saw its profit before tax (PBT) rise some 3.25 percent to N128 million from N124 million the year owing to a skyrocketing in sales of metal scrap and a decline in administrative and finance cost.
Despite a 1.03 rise in income tax expense, the company’s profit after tax (PAT) grew by 4 percent to N86.9 million in 2018.
Total Comprehensive income for the period doubled as the figure soared to N177.3 million in 2018. The surge was on the back of the reversal of a N101, 000 losses to N90.41 million in total comprehensive income in 2018.
Aluminium Extrusion recorded a surplus of N91.59 million on the revaluation of items of its assets during the 2018 financial year, without which the total comprehensive income for the period would be N85.71 million.
Earnings per 50 kobo share rose to 39 kobo after remaining at 38 kobo for three consecutive financial years while its Net assets per share increased 13.5 percent to N8.23 in 2018.
The company proposed a final dividend of 8.5 kobo for every 50 kobo share to be paid on a date it said would be communicated subsequently.
The company’s share price has remained flat at N8.2, its 52 week low, since August 14, 2018 and current dividend yield at Wednesday stood at 1.04 percent.
The Aluminium Extrusion although based in Imo state has operations both in Aba and Abuja.
The Company has a wide range of products which include sliding windows and sliding doors for domestic and corporate use, casement window, side hung doors and swing doors, office partition, curtain walls, netting or fly screen, furniture, shop front and casement window.
Tower Aluminium Group holds 67.82 percent interest in Aluminium Extrusion and boasts of being the pioneering leader in aluminium products across West Africa.
The Group says it has the single largest vertically integrated operations, with presence across West Africa in Nigeria, Benin, Togo, Ghana, Ivory Coast, Burkina Faso, Mali, and Guinea.
Aluminium Extrusion and Tower Extrusion are the two divisions of Towers Plc. in the aluminium extrusion business while competitions in the Aluminium business include First aluminium, Ola Aluminium Company, West African Aluminium Plc., Sparkle Aluminium among others.
SEGUN ADAMS
