Waste management firm, The Initiatives Plc, has reversed the loss it recorded in 2022 and posted N348.23m in 2023.
The firm lost N53.70m in 2023.
This was disclosed in the 2023 audited account filed with the Nigerian Exchange Limited on Thursday.
According to the report, the firm’s revenue rose by 119.79 per cent to N1.85bn from N841.47, while costs of sales went up to 1.17bn from N641m.
However, it managed to moderate administrative expenses to N227.72m from N240m in the prior period.
Meanwhile, finance costs went up significantly by 297.49 per cent to N78.29m from N19.69.
Explaining the reason for the hike in finance cost, TIP said, “This represents interests charged on loan facility of N700m obtained from Bank of Industry, charges by Providus Bank Plc and Wema Bank Plc on invoice discounting facilities of $150,000 each, and also current portion of charges by Providus Bank on the Bank Guarantee for loan facility from the Bank of Industry.”
It revealed that the loan was secured with a bank guarantee from Providus Bank Plc.
It noted that the security for the guarantee was as follows; “Mortgage Debenture on the Company’s assets situated at Plot 400 Location Road, Umuebule 5, Aba/PH Expressway, Port Harcourt, Rivers State, to be valued by a Bank accredited valuer. Irrevocable domiciliation of contract proceeds to Providus Bank and personal guarantee of the Managing Director and another director supported by notarised statements of net-worth.”
Earlier this year, DVCF Oil & Gas Plc, a substantial shareholder in The Initiates, sold off 9,468,900 units of its shareholding worth about N10.13m.
While DVCF Oil & Gas Plc sold off part of its shareholding, another major shareholder, Olajide Afolayan, acquired 5,994,937 units of TIP shares in two transactions that took place on December 20 and 21 on the platform of the NGX.
He bought five million units at N1.06 per share and the second tranche of 994.937 units at N1.07 per share, amounting to N6.364m.
DVCF Oil & Gas Plc sold off the shares in three transactions at different prices of N1.08, N1.06 and N1.07, respectively.
TIP, which is listed on the Growth Board of the NGX has an issued share capital of N1.92bn at N2.16 Kobo per share.
The company’s principal activities include waste management services, industrial cleaning and decontamination services.
SOURCE: PUNCHNG
