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Crisis Looms as RT Briscoe Erodes Shareholders’ Fund by N9.4bn
By Dipo Olowookere
All may not be too well with RT Briscoe Plc as the company’s auditors, PKF Professional Services, have said if urgent steps are not taken; the automobile firm may be forced to wind down.
On Monday, September 21, 2020, the Nigerian Stock Exchange (NSE) made the financial statements of RT Briscoe for the year ended December 31, 2019, available to the investing public.
An analysis of the results done by Business Post showed that the organisation is struggling to remain in business. This is because the firm is not generating enough funds to meet its normal obligations.
Though the revenue generated in the 2019 reporting year went up to N6.9 billion from N5.2 billion in 2018, the firm still recorded pre and post-tax losses.
The loss before tax reduced to N1.2 billion from N2.2 billion and the loss after tax dropped to N1.3 billion from N2.2 billion, while the retained earnings closed in negative N13.4 billion versus negative N12.1 billion in 2018.
The loss for the year was attributed to the finance costs, which remain high at N1.4 billion, though it recorded positive operating profits of N196 million during the year.
In the year, the group’s current liabilities exceeded its current assets by N14.8 billion versus N13.4 billion in 2018, while its total liabilities exceeded its total assets by N9.5 billion compared with N8.2 billion in 2018.
It was stated that “due to the losses incurred over the years, the shareholders’ fund has been totally eroded to the tune of N9.4 billion deficit as at December 31, 2019.”
In their notes, the auditors said the bank overdrafts of RT Briscoe as December 31, 2019, stood at N15 billion, representing 86 per cent of the total liabilities which is significant in the consolidated financial statements.
“The company has not been able to repay the bank overdraft and this has led to winding-up cases by the banks and other creditors.
“There are also issues on penalty charges by the banks. The significant, in relation to the inability to repay the borrowings which led to court litigations and also the going concern issues, makes it a key audit matter,” the auditors said in the report.
According to PKF Professional Services, “the issues raised in the financial statements indicate the existence of a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern.”
However, it was noted that the board has taken steps to return the company back to profitability by coming up with a number of strategic measures, which it said are already yielding positive results.
One of these strategies includes restructuring the business for greater efficiency and profitability and positioning the company and or its subsidiaries to attract potential investors.
RT Briscoe stressed that this has led to an increase in operating profits of N100.3 million and N195.0 million in 2018 and 2019 respectively.
Another strategy implemented, according to the firm, is recapitalising the business, which is to explore the possibility of raising about N10 billion by way of equity, debt capital or a combination of both.
RT Briscoe said it engaged the services of Lead Capital to see how to make this a reality and a draft prospectus for a Special Purpose Money Market Funds was designed and approved by the board and is about to be submitted to the Securities and Exchange Commission (SEC) for approval.
The company also said it engaged some forensic experts to look into its bank statements and it was discovered that rather than owing the banks the huge amounts being currently claimed by the banks against the firm, the company should, in fact, have positive balances with some of these banks, as the huge liabilities claimed by the banks are mainly due to questionable excess and penal charges.
Business Post recalls that on September 1, 2020, the NSE suspended trading in the shares of RT Briscoe and five other companies because of their failure to release their financial statements. It was not the first time such action was taken on RT Briscoe, which was also suspended on July 2, 2019, for the same reason. A year earlier, on July 5, 2018, the NSE also suspended RT Briscoe from the exchange due to failure to submit its 2017 financial results. The suspension was only lifted two months after it did the needful.
RT Briscoe is allegedly indebted to Access Bank (through Diamond Bank), Polaris Bank (through Skye Bank), GTBank, UBA, First Bank, FSDH Merchant Bank and the Federal Inland Revenue Service (FIRS).
By Aduragbemi Omiyale
Over $280 million has been invested by Dangote Cement Plc in compressed natural gas (CNG) technology and infrastructure to enhance energy efficiency and drive economic growth in Nigeria.
The cement maker turned to CNG in demonstration of its support for President Bola Tinubu’s drive for cheaper and cleaner fuelling alternatives for all Nigerians.
At a recent event, the President emphasised the urgent need for Nigeria to utilise its vast natural gas resources in the transportation sector.
He stated that CNG transportation is an economic necessity for Nigeria, signalling a significant shift in the country’s approach to public transportation and energy use.
This has spurred Dangote Cement to adopt CNG, reflecting its dedication to mitigating climate change and supporting a transition to a low-carbon economy, making it the largest operator of CNG trucks in the country.
The chief executive of Dangote Group, Mr Aliko Dangote, said his company’s investments in CNG are also in line with Nigeria’s Nationally Determined Contribution (NDC) under the Paris Agreement, which aims for net-zero emissions by 2060.
“In this pursuit of transition to clean energy, we are optimistic of a remarkable accomplishment by President Tinubu, as he has taken the lead in the nation’s drive towards energy efficiency. This presupposes private sector intervention to support this noble idea initiated by the President,” he stated.
The businessman noted that the firm’s early adoption of CNG has made it the largest operator of CNG trucks in Nigeria, emphasising that the initiative is a boost to Mr Tinubu’s quest towards enhancing the nation’s energy independence and contributing to a more secure energy future.
“We are now using CNG vehicles, especially with the new policy of the federal government, launched under the Renewed Hope Agenda by President Tinubu. We are committed to a cleaner and greener future,” Mr Dangote said.
On his part, the chief executive of Dangote Cement, Mr Arvind Pathak, said the cement miller aims to acquire 100 per cent CNG trucks as part of a long-term plan to transition its entire fleet to CNG.
He disclosed that the CNG infrastructure investments have positively influenced Nigeria’s transition to cleaner fuels, adding that the CNG station at Obajana, capable of refuelling over 3,000 trucks, exemplifies this commitment, with a second station currently under development in Ibese to support fleet operations further.
“By mid-2026, Dangote Cement aims to operate a fleet predominantly powered by CNG. To facilitate this transformation, we are investing in expanding our CNG fuelling infrastructure, ensuring that our growing fleet has reliable access to CNG as our fuel,” Mr Pathak said.
He added that plans are afoot to aggressively pursue this timeline of deployment, beginning from the first quarter of 2025, saying, “We are keeping our eyes on the ball to ensure that we do not miss our target dates of full compliance.”
By Adedapo Adesanya
The Lagos State Government has announced that the Red Rail line will begin full passenger operations on Tuesday, October 15, 2024.
This was disclosed by the Managing Director of the Lagos Metropolitan Area Transport Authority (LAMATA), Mrs Abimbola Akinajo.
“Full passenger operations on the Lagos Rail Mass Transit (LRMT) Red Line will commence on Tuesday, October 15, 2024, Managing Director of Lagos Metropolitan Area Transport Authority (LAMATA), Engr. Abimbola Akinajo affirmed today,” a public notice from the agency read.
According to LAMATA, Governor Babajide Sanwo-Olu, members of his executive council, and other dignitaries will launch the passenger operations and ride with commuters on the first fee-paying passenger trip.
Mrs Akinajo said that train services would commence daily from Agbado at 6.00 am.
“Before now, trips have emanated from Oyingbo at 9.00 am. The first train therefore got to Agbado at 10.07 am. The adjusted timetable foreshadows upcoming commercial passenger operations commencing on Tuesday, 15th October 2024,” the agency said.
He explained that the new timetable was the outcome of data gathered through the series of tests, including that for the non-fee-paying passengers. According to him, the new timetable gives priority to the origin trips from Agbado where riders live and work at Ikeja, Oshodi, and Lagos Island.
“For passengers whose journeys terminate on Lagos Island, buses will be available at Oyingo bus terminal for them to complete their journeys,” LAMATA said.
“It would be recalled that infrastructure for the Red Line was commissioned by President Bola Ahmed Tinubu on 29th February 2024. The Red Line’s first phase spanning 27 kilometres has eight stations at Oyingbo, Yaba, Mushin, Oshodi, Ikeja, Agege, lju, and Agbado.”
By Modupe Gbadeyanka
The Federal Road Safety Corps (FRSC) has said it would update members of the public on the new rates for driver’s licences and number plates.
On Wednesday, the agency, through its social media platforms, released a revised rate for the items, attributing the increase to the Joint Tax Board (JTB).
However, after removing the information from its platform, it issued a rejoinder, claiming the image of the JTB was added to the notice “in error.”
In the now-deleted flyer, the road safety organisation said from November 1, 2024, to obtain a 3-year motor vehicle driver’s licence, applicants will pay N15,000, while the 5-year licence will cost N21,000.
As for the 3-year motorcycle and tricycle driver’s licence, it will now be N7,000 and N11,000 for the 5-year licence.
It also said the standard private vehicle number plate will cost N30.000, the standard commercial vehicle number plate will also be N30,000, while the fancy vehicle number plate will cost N400,000.
In addition, the motorcycle number plate will be N12,000, the articulated vehicle number plate will be N90,000, the deal motor vehicle number plate will be N100,000, the government fancy motor vehicle number plate will be N120,000, the government standard number plate will be N80,000, the government fancy motorcycle number plate is N50,000, and the government standard motorcycle number plate will beN20,000.
But in its rejoinder signed by its Assistant Corps Marshal for Corps Public Education Officer, Mr Olusegun Ogungbemide, on Thursday, the agency said, “Recall a flyer earlier released on revised rates for number plates and driver’s licence bearing JTB logo, which was earlier released on FRSC social media page, the corps wishes to inform the general public to disregard the content of the flyer, particularly as it relates to the JTB logo, which was added in error.
“Further information on the revised rates will be made available to the public in due course. The Corps regrets any inconveniences caused by the release.”
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