C&I Leasing mulls raising $100mn to deepen current performance in business
Pioneer leasing firm, C&I Leasing Plc has signaled preparedness to raise additional capital to the tune of $100 million to support its expansion programme.
Key reason for the new funding is to situate the firm in driving further consolidation which will among other things, double earnings over the next two to three years.
Executive Vice Chairman of the group, Emeka Ndu, who addressed the investment community at the company’s facts behind the figures, said the double earnings will be achieved through effective execution of its long term contracts in the marine sub-sector of the oil and gas industry, and other industries it operates.
According to him the firm also plans to explore potential growth sectors for viable investment opportunities going forward.On the contribution of its subsidiaries to the group gross earnings, he said marine services had 32 per cent, fleet management 27 per cent and personnel outsourcing 41 per cent in the overall company business performance for the 2016 financial year.
Ndu also averred that the economy presents myriad of opportunities for the professionally run logistics services company, adding that these opportunities are evident in the growth of its assets and turnover within the last three years.
In his remarks, the Group’s Chief Finance Officer (CFO), Alex Mbakogu, while addressing investors at the company’s investors’ forum in Lagos recently, said the company plans to raise additional funds to the tune of $100million to expand its operations.
He said while exploring cheaper sources of funds the company also plans redemption of $12.4 loan stock from Abraaj
Earlier in his address, the Group Managing Director, Andrew Otike-Odibi, said “Our training and manpower development is structured under our SDS training centre. Leasafric is a subsidiary of C&I Leasing Plc in Ghana. It currently has a fleet size of 100 vehicles with a wide network of clients that cut across the oil & gas industry, power sector, telecommunication, FMCG and mining industries. It is the largest leasing company in Ghana and provides professional lease options for individuals and corporate bodies”.
Business Hilights gathered that the company’s half year result for the period ended June 30, 2017 showed an increase in gross earnings from N8,729 billion in 2016 to N11,546 billion in 2017. Profit for the period stood at N580 million against N145 million a year before, with earnings per share of 35.87 kobo against 8.99 kobo in 2016.
