ABC Transport Rakes In More Losses, Losses Shoot Up By 6,363%

ABC transport

ABC Transport, one of Nigeria’s oldest and largest transport and logistics providers has reported a net loss of NGN617 million for the first nine months of the year.

The worrying news about the result is that apart from the fact that the company made a net loss this year, the loss has actually increased by 6363% year on year.

In the first nine months of the year for 2015, ABC Transport recorded a net loss of NGN9,5million.

The result also shows that the company is not really suffering from the recession but an internal problem as its revenue for the period only fell to NGN5,0 billion compared to NGN5,1 billion in the previous year.

The major problem can be identified in its operating expenses which shoot up to NGN4,2 billion compared to NGN3,8 billion. Its administrative cost is also too high for a company spending so much in providing transport services. The company spends NGN1,0 billion on administrative expenses, the same amount it spent in the year before.

ABC Transport is also suffering the effect of inflation which has jacked up its finance costs from loans it took before the economy went south. Finance cost increase to NGN422 million compared to NGN256 million paid last year.

Its asset value has crashed to NGN4,1 billion versus NGN5,9 billion for last year. However, liabilities have been cut to NGN2,5 billion compared to NGN3,3 billion.

For a road transport company making these huge losses, the company will need to be restructured to fit into the new operating environment.

Corporate information

ABC Transport Plc was incorporated in April 1993.The Company’s business is road passenger transportation between major cities in the south,north central and Abuja. In July 2004, the Company commenced road passenger transportation on the west coast between Lagos Nigeria and Accra Ghana. ABC Transport Ghana in which ABC Transport Plc owns a 99% equity stake was incorporated in 2007 to provide transport services within Ghana and to offer passenger and cargo handling service to ABC Transport Plc.

ABC Transport Plc is also involved in cargo business across the road passenger network and hospitality business at its City Transit Inn (CTI), Abuja. Haulage activities picked up actively for the company in the year 2010. ABC Transport Plc which became public company in 2005 equally owns 50% equity stake in Transit Support Services Ltd, a trading company engaged in the importation, sales of vehicles spares and installation of motor vehicle speed governing devices and assembly of heavy duty trucks and a 5% stake in ABC Express Courier (ABEX) ltd.

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