Last Update25 Jul 25Fair value Increased 35%
WaneInvestmentHouse has decreased revenue growth from 10.9% to 0.0%, decreased profit margin from 2.9% to 2.5%, increased future PE multiple from 3.6x to 5.6x and decreased shares outstanding growth rate from 0.1% to 0.0%.
R.T. Briscoe Nigeria Plc showed improved top-line performance in H1 2025, with revenue rising by 62% year-on-year to ₦16.32 billion, driven by recovery in sales volume and market demand. Operating profit also increased modestly, but the company’s structural weaknesses and balance sheet fragility continue to weigh on its long-term viability.
✅ Strengths:
- Revenue Growth: 6M revenue grew from ₦10.07bn (2024) to ₦16.32bn (2025), a 62% YoY increase, indicating strong business momentum.
- Improved Operating Profit: Operating profit stood at ₦1.29bn (up from ₦1.38bn in H1 2024), reflecting resilience despite rising costs.
- Reduction in Loss Position: The net loss position continues to reduce, with retained losses narrowing slightly from ₦12.65bn to ₦12.32bn.
- Cash Flow Improvement from Financing: Inflow of ₦1.8bn from LPO financing facility helped mitigate short-term liquidity pressure.
⚠️ Weaknesses / Risks:
- Heavily Negative Net Equity: Total equity remains deeply negative at ₦8.15bn, indicating sustained balance sheet erosion.
- Severe Liquidity Strain: Net cash from operating activities was ₦1.57bn negative, while cash and cash equivalents remain deeply in overdraft (₦12.56bn).
- High Debt & Overdraft Burden: Bank overdrafts and borrowings are alarmingly high at ₦16bn, worsening financial flexibility.
- Profitability Still Weak: Profit before tax for H1 2025 (₦413.9m) is 43% below the H1 2024 figure (₦727.2m), reflecting deteriorating margins despite increased sales.
- Decline in Other Income: Non-core earnings (e.g., gain on PPE sale in 2024) are not repeatable, leading to weaker bottom-line support in 2025.
📈 Outlook & Recommendation:
While revenue growth and operating performance show signs of recovery, the company remains in a structurally distressed financial position. Until there is a clear strategy for deleveraging and recapitalization, upside potential remains speculative.
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