The Initiates Plc (TIP) reported total revenue of NGN120.2M (H1 2020: N241.3M) for the H1 2021 representing a 51.2% drop. The company’s gross profit in H1 2021 â N24.2M, 2020 â N62.9M representing 61.6% drop when compared with YTD of 2020.
The Initiates Plc is a professional waste management company in Nigeria offering services for waste management, industrial cleaning and decontamination for the private and public sectors.
The Initiates Plc (TIP) also reported total revenue of NGN65.78M (2020: N80.6M) for the second quarter representing an 18.39% drop when compared to Q2 of 2020. The makeup of this revenue along core business lines shows a significant contribution from Waste Management Service – N54.7M, (E-waste) â N10.9M and ICS â 0.2M.
- DIRECT COST: 2021 â N96.1M, 2020 â N183.M shows a drop in Direct cost by and 47.6% 1.2. 3
- NET LOSS BEFORE TAX: 2021 â N61.1M, 2020 â N9.04M, showing an increase in loss
TIP posted a Gross Profit of N20.8M, (2020 â N22.6M) which represent a drop of 7.69%
compared to Q2 of 2020.
Direct Cost: 2021 â N44.9M (80% of revenue) 2020 â N58.0M representing a decrease in Direct Cost by 22.56% over Q2 of 2020.
TIP posted a net loss before tax of N31M (2020 – N10.5). Representing about 3 times the loss of 2020. TIP Balance Sheet values show NGN1.045 Billion during the period under review from NGN1.144 as of 31 st December 2020.
- Trade Receivables: This stood at N14.5M at the close of business (COB) on 30th June 2021 (December 31st 2020: N126.5M). Out of this, only NGN0.3M was above 90 days.
- Trade Payable: TIP Account Payable dropped to NGN41.3M as of 30th June 2021 as
against NGN46.5M reported as of 31st December 2020
When TIPâs Current Assets of N181.6M is charged against Current Liabilities of NGN262.6m,
a Current Ratio of about 0.70:1 is reported. This however shows a negative liquidity situation meaning that TIPâs current assets that can be quickly converted into liquid cash will not be enough to meet immediate payable obligations.
THE Reason for this performance is the slow post-Covid19 economic recovery. However,
going by the level of bided jobs and available opportunities, Q3 and Q4 results might likely be better as the Management and Board are hopeful that this precarious situation will certainly change as we expect to execute at least two projected and signed contracts and also market new clients.