NewStats: 3,261,666 , 8,174,697 topics. Date: Friday, 30 May 2025 at 03:16 AM y5v4j

Madam Mcy your PZ is doing well.

yMcy56:
Those quick to drop AFRIPRUD because of UCAP's proposed dividend......
AFRIPRUD is coming with both dividend and bonus issue....
Just a reminder

Why has Ucap disappoint US in 2025?

Bye bye Ella Lakes

If Ucap has drop this bomb, any hope to MARCH on with UBA

Youngzedd:
Bye bye Ella Lakes

You'll be back

Mfunkynation:

Jesus! Ucap..
How the mighty has fallen..

UCAP declared bonus last year, hence it should be expected that this year's dividend per share might be lower

Mfunkynation:
If Ucap has drop this bomb, any hope to MARCH on with UBA

Those that collected last year bonus and dividend should not see it as a bomb but gain...lol
UCAP still tried nah...
The dilution may have been the cause for now, it may still pay well in coming years.

ndept:

The Explainer: Ellah Lakes In-Depth Analysis of Q2 Results and Investment Outlook

Ellah Lakes Plc, a player in the agricultural and food production sector, has faced significant financial challenges during the second quarter (Q2) ending January 31, 2025. Despite modest revenue growth, the company posted a loss of N396.6 million for the period, exacerbated by escalating istrative and personnel expenses. This analyst review delves into the company’s financial performance, offering an analysis of its core metrics and examining its future prospects for investors.

Ellah Lakes saw its revenue for Q2 2025 stand at N18.97 million, a notable improvement from the corresponding period in 2024 when the company reported no revenue at all. This growth, though positive, was insufficient to offset the sharp rise in operating costs. The company’s revenue generation, primarily driven by its agricultural activities, reflects an ongoing effort to expand its business operations. However, the modest increase in income was dwarfed by the surge in operational expenditures, which is a key factor contributing to the company’s poor financial performance.

The company's operating loss for Q2 2025 soared to N675.8 million, a significant deterioration from N344.2 million in Q2 2024. The steep rise in operating losses is attributed to higher istrative costs, which amounted to N249.3 million, a sharp increase from N86.3 million in the prior year. Additionally, personnel expenses nearly doubled, rising to N414.3 million from N119.5 million during the same period last year.

The sharp increase in operating costs is attributed to the company’s ongoing restructuring efforts, the scaling of its business operations, and inflationary pressures that have affected its cost base. As Ellah Lakes continues to ramp up operations, these higher costs will likely persist unless the company achieve significant efficiencies in its processes or on the higher costs to consumers.

One of the most concerning aspects of Ellah Lakes' Q2 2025 financials is the surge in its total liabilities, which increased to N4.61 billion, up from N2.7 billion in the same period last year. This substantial rise in liabilities is largely driven by a director’s loan of N1.88 billion and borrowings amounting to N1.14 billion. Such a significant increase in liabilities places additional strain on the company’s balance sheet, particularly as its retained losses have widened to N4.81 billion from N3.96 billion.

The growing debt burden is a serious concern for shareholders, as it threatens the long-term viability of the company and erodes shareholder equity. In particular, the company’s retained losses continue to grow, reducing its ability to reinvest profits into expansion or reduce its reliance on external financing.

Despite the financial challenges, Ellah Lakes has managed to maintain a revaluation surplus of N14.93 billion, which has contributed to total equity of N19.95 billion as of January 31, 2025. This revaluation surplus, however, is largely a paper gain and does not directly contribute to the company’s liquidity position. While the revaluation surplus bolsters the company’s equity, it does little to alleviate the immediate financial pressures, especially considering the mounting operating losses and growing debt.

Ellah Lakes’ cash position is another area of concern. Cash and cash equivalents have sharply declined to N23.1 million from N243.3 million as of July 2024. This sharp decline indicates significant liquidity challenges, and raises concerns about the company’s ability to meet its short-term obligations without resorting to further borrowing or asset sales.

The decline in cash reserves could signal a tight liquidity position, which affect the company’s ability to fund its operations, repay debts, or capitalise on new business opportunities in the near term. For investors, this raises red flags about the company’s financial stability and its capacity to weather future economic or market shocks.

The stock price of Ellah Lakes Plc has also experienced a slight decline, trading at N3.20 per share on Friday, February 28, 2025, down from N3.22 at the previous market opening. While this seem like a minor fluctuation, it reflects broader investor sentiment regarding the company’s current financial health and future prospects.

Given the company’s ongoing financial strain, characterised by rising operating costs, widening losses, a growing debt burden, and a weakened liquidity position, investors may face a challenging period ahead. Although Ellah Lakes has made strides in increasing its revenue and maintaining its equity base, the rising costs and liabilities continues to undermine profitability.

Investor Recommendation: "HOLD" or "SELL"?

For investors currently holding shares in Ellah Lakes Plc, the recommendation would likely be “HOLD” for now, with caution. The company's revaluation surplus and the potential for future growth in its agricultural operations remain factors that may stabilise its financial situation over time. However, given the significant operating losses, growing debt load, and liquidity concerns, investors should monitor the company closely for any signs of improvement in cost control, cash flow, and revenue generation.

For prospective investors, the current market price of N3.20 per share represent a short-term opportunity, but only if they are prepared to take on the associated risks. With no clear path to profitability in the near term and ongoing financial pressures, caution is advised. The company’s current financial situation suggests that Ellah Lakes struggle to generate meaningful returns for investors unless there is a significant change in its operational and financial strategies.

Ultimately, investors should consider their risk appetite and closely monitor the company’s next set of financial results and any updates regarding its debt management and liquidity position before making any final investment decision.

© Gilbert Ayoola

Think long term so you don't suffer what Oandoans are going through

Looking forward to comparing Totalenergies and MRS 2025 Q1 and Q2 numbers .

The queue in MRS lately has been crazy. It does look like Dangote PMS is the preferred choice. NNPC and total are getting lesser customers lately, while MRS is buzzing.

SonofElElyonRet:

Think long term so you don't suffer what Oandoans are going through

I don't have single unit of Ellah Lakes though. Just posted the analysis as a guide for those that are in it.

Shalom428:
Looking forward to comparing Totalenergies and MRS 2025 Q1 and Q2 numbers .

The queue in MRS lately has been crazy. It does look like Dangote PMS is the preferred choice. NNPC and total are getting lesser customers lately, while MRS is buzzing.

Good observation. Same thing made me to take another close look at their Q4 result (Oct - Dec 24), but I did not see anything spectacular in their revenue viz-a-viz profit.

Mfunkynation:

Why has Ucap disappoint US in 2025?

Obviously you guys didn't read the financials and concentrated only on declared dividend forgetting the dilution from last year bonus. Profit almost doubled. UCAP is a solid stock. Those selling might regret later

Mfunkynation:

Jesus! Ucap..
How the mighty has fallen..

What whr you expecting. I company paid you interim of .90kobo and bonus of 2 for 1.
They should kill themselves for u

Mfunkynation:
If Ucap has drop this bomb, any hope to MARCH on with UBA

UBA, APR & UCAP are children of the same parents. I will leave APR to see what their result will be. But, surely UBA must go. I guess i have to convert it to Zenith, now the price is good and wait for their result. I might stage a come back, but i believe more in Zenith.

SonofElElyonRet:

You'll be back

Sure.



Only when I see something tangible.

Streetinvestor2:
What whr you expecting. I company paid you interim of .90kobo and bonus of 2 for 1.
They should kill themselves for u

NASCON one step forward, two step backwards

ndept:
Good observation. Same thing made me to take another close look at their Q4 result (Oct - Dec 24), but I did not see anything spectacular in their revenue viz-a-viz profit.

The MRS buzz took top gear in February. Total and NNPC in Lagos has been recording very low patronage since last month, while queue wan finish MRS.

People claim Dangote PMS last longer and it is cheaper.

Xidget:
NASCON one step forward, two step backwards

They announced N2 dividend but did not release the audited result. I doubt if DS result will be good. Board meeting was held on 27 February and up till date, the result has not been released.

https://greentickertales.com/bua-cement-audited-fy-2024-results/

https://greentickertales.com/dangote-cement-fy-2024-audited-results/

https://greentickertales.com/mtn-nigeria-audited-fy-2024-results/

Sunrisepebble:

why you dey laugh. They still made eps of 1.34 on 18B os as against 1.90 on 6B os.
The .50kobo dividend is on 18B os.
When you see some comments you go just dey wonder...lol
I was not expecting dividend on the bonus self.
Thar means without bonus they paid total of #2.40 dividend for 2024

Please a Microfinance Bank is offering me 24% interest per annum for a fixed deposit, does anyone know any market fund that offers better than that?
Secondly, the dollar denominated investment I asked for last time highest interest rate I have seen is 3%, can anyone suggest any better offer?

PZ

God bless you ymcy for recommending this stock and also encouraging me not to sell at loss when it had a sharp dip.
It has broken the #36 you told me it might reach.
Abeg any clue as to the new ?

Valthegreat:
Please a Microfinance Bank is offering me 24% interest per annum for a fixed deposit, does anyone know any market fund that offers better than that?
Secondly, the dollar denominated investment I asked for last time highest interest rate I have seen is 3%, can anyone suggest any better offer?

Which microfinance bank o make I carry my Kaya go dump there😂

Streetinvestor2:
What whr you expecting. I company paid you interim of .90kobo and bonus of 2 for 1.
They should kill themselves for u

I knew that the dividend will not be bumper this year. I was expecting N1+.

toyeoye:


🚨 Market Data Restored

The earlier NGX API connection issue has been resolved, and live market updates are back on the website.

I’ve requested NGX to move us to a more stable server to ensure seamless real-time data going forward if possible.

Thanks for your usual patience, I'm working to keep market insights as real-time as they should be!

How do you get your data from NGX...

Do you pay for a licence or something, i am curious.

Based on the financial report for Cutix Plc, several trends can be inferred that may indicate future performance:

https://doclib.ngxgroup.com/Financial_NewsDocs/43228_CUTIX_PLC.-_QUARTER_3_-_FINANCIAL_STATEMENT_FOR_2025_FINANCIAL_STATEMENTS_FEBRUARY_2025.pdf

POSITIVES

1. Revenue Growth:
40% increase in revenue from ₦8,412,083,000 to ₦11,812,947,000 suggests strong growth in sales, particularly in the Cables and Wire Sales segment. Continued growth in this area indicates a positive outlook for future revenue.

2. Profitability:
12% increase in profit before taxation and 13% increase in profit after taxation reflect improved profitability. This positive trend, combined with a 13% increase in adjusted EPS, suggests that the company's core operations are becoming more efficient.

3. Capital Expenditure:
A significant 274% increase in capital expenditure from ₦336,968,000 to ₦1,258,788,000 indicates substantial investment in property, plant, and equipment. This investment could lead to increased production capacity and future growth.

4. Equity and Liabilities:
The 17% increase in total equity and the 15% increase in total assets suggest a strong financial position. However, the 12% increase in total liabilities should be monitored to ensure that the company's debt levels remain manageable.

5. Cash Flow:
Positive net cash generated from operating activities (₦1,471,728,000) indicates strong cash flow from core operations. However, the net cash used for investing activities (₦1,259,158,000) reflects significant investments, and net cash used in financing activities (₦360,491,000) may impact short-term liquidity.

5. Cost Efficiency:
The relatively low increase in selling and distribution expenses and istrative expenses compared to revenue growth indicates improved cost efficiency and effective expense management.

NEGATIVES

1. EPS Decrease:
The actual EPS (Earnings Per Share) has decreased by 44%. This indicates a significant drop in profitability when considering the overall earnings divided by the number of shares.

2. Increase in Liabilities:
Total Liabilities have increased by 12% from ₦3,201,590,000 to ₦3,579,639,000. While the company is investing and growing, the rising liabilities could be a potential risk if not managed properly.

3. Capital Expenditure Surge:
A substantial 274% increase in capital expenditure (₦1,258,788,000) compared to the previous period (₦336,968,000). While this investment is crucial for future growth, it also implies higher immediate costs which could affect short-term liquidity.

4. Net Cash Used in Financing Activities:
The company has a negative cash flow from financing activities (-₦360,491,000), indicating more cash outflows than inflows from activities like repaying loans, paying dividends, etc. This could signal potential liquidity issues.

5. Inventory Levels:
A significant portion of current assets is tied up in inventories (₦4,024,958,000), which increased from ₦3,473,890,000. High inventory levels can lead to higher holding costs and potential obsolescence risks.

6. Tax Burden:
The company's tax expense has increased by 11%, which could impact net profitability in future periods if the trend continues.

This write up was aided with Microsoft CoPilot

I jumped out of Access this morning at 27.30
We live to fight another day

Zegra:
I jumped out of Access this morning at 27.30
We live to fight another day

Same same ..reduced my holdings.. cap appre more than div ..small dividend things ..Maybe them go pay good one this time around ..we see how it goes

Mfunkynation:

I knew that the dividend will not be bumper this year. I was expecting N1+.

You whr expecting #1 on 18B OS or 6B OS