A rebound in revenue was not enough to see stationary maker, Thomas Wyatt, turn the corner in the first quarter ended 30 June as the company’s losses grew to N16.74 million.
Thomas Wyatt announced its bottom line grew weaker by 38.16 percent from a loss of N12.11 million last year. This extends a spell in the first quarter from 2017, based on available company results.
Thomas Wyatt’s performance faltered on the heels of higher expenses and higher borrowing cost while other income slumped. In the quarter, revenue grew 33.87 percent to N17.02 million after a slowdown in the corresponding period of 2018 and an increase in the cost of sales had doubled the company’s loss.
Cost of sales was 8 percent higher in the period but Thomas Wyatt posted its first in more than three years. Cost to Sales margin, the proportion of expenses generated per N100 sales, dropped from 118.23 percent to 96.15 percent in the period.
The stationary maker did not earn rental income in the quarter even though it made N450,000 the year before. Sundry income also saw a big decline which brought total income from outside Thomas Wyatt’s core operation to N44,000, 94 percent lower than previously noted.
Administrative cost was higher by some 48 percent fuelled by a sharp rise in Outsource services, Repair and maintenance, Personnel cost while Advertising and Marketing promotions cost which was absent in 2018 weighed on the company.
Distribution expenses also took its toll as Thomas Wyatt incurred more than double of N703,837 spent last year. Operating losses increased from N10.32 million to N11.82 million on account of the rise in cost.
Thomas Wyatt’s finance cost spiked 39 percent from N1.5 million triggering a loss before tax of N16.44 million, about 39 percent from the year before.
The company’s tax increased slightly in the period while loss attributable to each unit of share rose to 8 kobo, 2 kobo more than in the first quarter of 2018.
Shares of Thomas Wyatt have remained unchanged since price advanced to 42 kobo late June. So far, the shares have gained 82.61percent year-to-date. Thomas Wyatt Nigeria manufactures stationery products which include calendars, brochures, cards, deposit slips, certificates, envelopes etc.
SEGUN ADAMS
