Julius Berger records 8.35% and 86.83% Drop in Revenue and Profit in 2020

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GTI – Julius Berger Nigeria Plc, a planning and constructing a group of companies with a market capitalization of more than ₦30 billion, involving in all kinds of civil engineering works with seven subsidiaries, released its Consolidated Unaudited Financial Statements the year ended 31st December 2020 to the investing public on January 26th, 2021.

  • From the released result, the firm saw an 8.35% decrease in revenue from ₦264.56bn in FY’2019 to ₦242.46bn in FY’2020. This was driven by an 8.35% decrease in the revenues from their primary geographical market (Nigeria, Europe, and Asia).

Julius Berger records 8.35% and 86.83% Drop in Revenue and Profit in 2020 Brandspurng

  • Also, the civil works, building works, and services rendered at the firm dipped by 9.68%, 9.29%, and 4.28% respectively, as this could be the effect of Covid-19 pandemic lockdown that truncated the many capital projects.
  • The Group in its Other Gains and Losses reduced by 35.34% due to the decrease in the Foreign Exchange Gains to N2.55 billion in FY’2020 from N1.88 billion. Also, the Group saw a 25.55% increase in its Net Finance Cost to N7.39 billion in FY’2020 as against N5.90 billion in the prior year of 2019.
  • However, there were reductions in some key line expenses, such as; Administrative Expenses (from N37.03 billion to N29.99 billion) and Impairment Loss on Trade and Tax Receivables (from a loss of N2.97 billion to a gain of N713.78 million).
  • Despite the reduction in some key expenses as mentioned above, the Group’s Profit Before Tax (PBT) finally reduces by 71.92% from (₦14.68bn to ₦4.12bn) and Profit After Tax (PAT) also shrinks by 86.83% (from ₦10.34bn to ₦1.36bn).
  • Furthermore, the firms’ Return on Asset (ROA) and Return on Equity (ROE) both declined to 0.004x and 0.03x from 0.03x and 0.24x in the corresponding period of 2019.
  • Conclusively, the investors’ Earnings per Share (EPS) decreased by 16.26% to print at ₦4.79 in the year under review as against ₦5.72 at the previous year.
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As a buffer against hard times, Julius Berger said in September it would branch out into agro-processing, venturing into a subsector starkly different from its primary construction business in a move the board remarked had been informed by “the emerging developments, political, economical and structural in Nigeria and the resultant reforms by the governments.”

The management stated, 

“We have severally advised the Market that Julius Berger will be looking into diversification opportunities, based on the emerging developments, political, economical and structural in Nigeria and the resultant reforms by the Governments.

We would advise the Exchange and the Capital Market that the Board of Julius Berger at its meeting held on September 22, 2020, approved a diversification opportunity for the Company in Agro-processing.”

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Julius Berger records 8.35% and 86.83% Drop in Revenue and Profit in 2020 Brandspurng1

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Julius Berger records 8.35% and 86.83% Drop in Revenue and Profit in 2020 - Brand SpurJulius Berger records 8.35% and 86.83% Drop in Revenue and Profit in 2020 - Brand Spur

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Julius Berger records 8.35% and 86.83% Drop in Revenue and Profit in 2020 - Brand SpurJulius Berger records 8.35% and 86.83% Drop in Revenue and Profit in 2020 - Brand Spur

Latest News

Vivocom’s Group Game Changer – Multi-Billion Sand Project Secured

  • Initial contract worth RM3.79 billion for three years
  • Aspires to be a major industry player 'with exponential growth prospects'


KUALA LUMPUR, MALAYSIA - Media OutReach - 26 February 2021 - In a filing to Bursa Malaysia this evening, Vivocom Intl Holdings Berhad ('Vivocom') announced that V Development Group via one of its subsidiaries has secured a 'massive win' worth approximately USD934.7 million or the equivalent of RM3.79 billion.

Rain International Sdn Bhd ('Rain International') is a 97% owned subsidiary under the V Development Group which was recently merged into the Vivocom Group. The Company's proposed acquisition of V Development Group had been recently approved by the relevant authorities.

Rain International is principally involved in the mineral trading and exportation business, supplying sand to its client mainly in Hong Kong and China for reclamation and construction works. The Company had recently signed a contract for the supply of marine sand for a minimum period of three years.

The contract is for the supply of sand to Zhen Hua Engineering Company Ltd-China Communications Construction Company Ltd-CCCC Dredging (Group) Company Ltd. (ZHEC-CCCC-CDC), a Joint Venture contractor appointed to undertake the main reclamation works for the Hong Kong International Airport Three Runway System Project.

Director Mr William Chan Ching-Kee said: "As the appointed agent for the ZHECC-CCCC-CDC Joint Venture, we are looking forward to the exportation of sand from Malaysia to our client in Hong Kong to commence without any further delay."

Dato Seri Chia is optimistic that the contract would be extended for another two to three years and could potentially generate revenue of up to RM6 billion.

"The sand business is a major boost because it gives us tremendous visibility. The potential revenue is huge, recurring and highly scalable," its jubilant CEO, Dato Seri Chia Kok Teong exclaimed.

"The potential for explosive growth in the sand business is real and tangible, and bodes well for the Group in the next few years."

"We are starting with 3 years but the contract can easily be increased to 5 years and beyond, with higher tonnage shipped every 6 months. The exportation of sand will increase sharply over time," he added.

Besides the reclamation works for the Hong Kong International Airport, the rapid pace of construction and reclamation works in China and Singapore also requires heavy demand for sand, which is a considerable boon to Malaysia.

"The market for sand export is extremely humongous and will fuel the Group's rapid growth for the next several years. The RM3.79 billion Win is the first of many more to come."

"I have in fact urged my team to secure up to RM10 billion worth of sand contracts by the end of 2021. This is part of our overall transformation strategy to become a multi billions conglomerate," declared Dato Seri Chia.

"It is our core strategy to strengthen and diversify the Group's revenues generation capabilities and capacities and not be too narrowly focussed."

"Presently, we are already in negotiations for another RM2 to RM3 billion sand contract. Once finalised, we will make the relevant announcement as per Bursa Malaysia's requirements," Dato Seri Chia elaborated.

The sand would be procured from an approved permit holder to export sand overseas, and sourced from concession areas in Sandakan and Sungai Beluran in Sabah and throughout Malaysia.

"Even with this massive sand contract already secured, we will not be complacent. I have earlier promised to transform Vivocom into a behemoth Conglomerate and I will work non-stop to deliver on the promise," Dato Seri assured.

Since Dato Seri Chia's entry into Vivocom in January 2020 when its price was at 15 cents, the share has climbed sharply and last closed at RM1.06 on Thursday, 25th February 2021.

"I am very optimistic that Vivocom shares will continue to grow strongly and be worth a lot more than presently over time. I'm proud to say that we are no longer a penny stock," he reflected.

"My team is totally committed to building Vivocom into a reputable and profitable public company, one with solid fundamentals, sustainable profits and healthy cashflows."

"As a priority, we will work towards getting the Group elevated to the Main Board of Bursa Malaysia and be a dividends-paying company soonest possible," quipped Dato Seri.

To show his commitment, Dato Seri Chia has undertaken a voluntary self--imposed moratorium (or SIM) in that he will not dispose his personal stakes in Vivocom for the next 3 years. This will ensure the company's long-term price stability and sustainability.

"We want a stable and strong share price so that the Company can use its shares with its high liquidity as a currency for M&A activities to fund and fast-track expansion and growth," he explained.

"A strong share with high liquidity is a most valuable and prized asset. We will use it to buy Companies with game-changing and disruptive strategies. To look for the Next Big Thing."

"The enormous followings in the Company are what is driving in tremendous liquidity and momentum giving our share price added impetus," Dato Seri proudly asserts.

"We aspire to emulate Berkshire Hathaway strategy started over 40 years ago by Mr Warren Buffet. Mr Masayoshi Son built SoftBank Group of Japan along the same philosophy and Alphabet in US adopted similar strategies."

"These three companies are presently amongst the most valuable and admired companies in the world. I have the same dream for Vivocom. I am determined to leave behind an enduring legacy for all our valued shareholders," concluded Dato Seri Chia.

Julius Berger records 8.35% and 86.83% Drop in Revenue and Profit in 2020 - Brand Spur
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