Austin Laz PLC has disclosed that it recorded a net loss of NGN33,6 million for the third quarter of 2016.
Austin Laz & Company PLC is an indigenous manufacturer of industrial and consumer products. The Company comprises of major divisions including refrigeration, thermoplastic, aluminum & building materials. Austin Laz produces housing elements and commercial cooling equipment/products.
The result comes with a mix feeling as the company’s gross revenue actually grew by 67% to NGN127 million compared to NGN76 million.
The major hole in the books of the company for the quarter was created by a huge rise in its cost of goods which rose from by 129.7% to NGN139,7 million compared to NGN60,8 million expended on the same item last year. A major pointer is that the company must be paying for its parts and materials for production as result of a weaker Naira (NGN).
With a weakening demand, the prospect for increasing product prices is negative. Administrative expenses also increased by to NGN13,7 million. This suggest the company added more personnel given the fact that its cost for the same purpose was NGN8,7 million last year.
The company’s current assets for the period was NGN449 million versus its current liabilities put at NGN72,5 million. With a net borrowing of NGN28 million, Austin Laz’s current ratio seems healthy all other things being equal.
However, the company will need to work on its cashflow. Net cashflow for the period fell to NGN9,4 million versus NGN43 million recorded last year.