₦airaland Forum

Africa, Middle East to Record 70% Drop in Financial Deals 2018
https://www.businesspost.ng/2018/03/28/africa-middle-east-to-record-70-drop-in-financial-deals-2018/

UBA Gets Licence to Operate Wholesome Banking Services in UK
https://www.businesspost.ng/2018/03/28/uba-gets-licence-to-operate-wholesome-banking-services-in-uk/

Wema Bank Secures $35m Funding Package to Support SMEs
https://www.businesspost.ng/2018/03/27/wema-bank-secures-35m-funding-package-to-support-smes/

Nigeria E-commerce Industry: Struggling to Break Past Growth Stage
https://www.businesspost.ng/2018/03/27/nigeria-e-commerce-industry-struggling-to-break-past-growth-stage/

By United Capital Research

Every business/industry is expected to go through four stages of development, from the first product entry to its eventual decline (Start-up, Growth, Maturity and Decline stages). Each stage has its own unique characteristic.

The Nigerian ecommerce industry is currently perceived to be at the growth stage, having seen a number of investments in the space in the past.

However, the Nigerian online retailing business, though filled with potential, continues to struggle to break-even.

Recent data from the Nigerian Communication Commission (NCC) showed a 9.8%y/y rise in GSM internet subscription to 100.2mn as at Jan-18.

Yet, the growth in the number of internet subscribers seems not to be translating into profit for Nigeria’s online retailers.

One key driver of the low profitability is the high operating cost that has outpaced the growth in revenue associated with new subscribers coming online.

In our view, revenue growth is constrained by “trust” concern on the part of the shoppers, while logistics bottlenecks continue to add to cost pressures for e-commerce players, making profitability a mirage in many instances.

This has led to the recent exodus of some of the sector’s key players.

We believe the industry can break past the growth stage if operating environment becomes more enabling, and stiffer regulations are directed at addressing the trust deficiency on the part of the consumers.

https://www.businesspost.ng/2018/03/27/nigeria-e-commerce-industry-struggling-to-break-past-growth-stage/

Stock Analysis: Flour Mills Gets Sell Rating
https://www.businesspost.ng/2018/03/27/stock-analysis-flour-mills-gets-sell-rating/

CBN Suspends OMO Sales on Market’s Tight Funding Pressures
https://www.businesspost.ng/2018/03/27/cbn-suspends-omo-sales-on-markets-tight-funding-pressures/

Milost Terminates $1b Deal with Unity Bank, Plans $500m Lawsuit
https://www.businesspost.ng/2018/03/26/milost-terminates-1b-deal-with-unity-bank-plans-500m-lawsuit/

FGN Bonds Yields May Gradually Rise, Drop in June—FSDH
https://www.businesspost.ng/2018/03/26/fgn-bonds-yields-may-gradually-rise-drop-in-june-fsdh/

Dangote Cement Targets Expansion, Higher Sales Volume in 2018
https://www.businesspost.ng/2018/03/26/dangote-cement-targets-expansion-higher-sales-volume-in-2018/

Stock Watch: Top Recommendations for the Week (March 26)
https://www.businesspost.ng/2018/03/26/stock-watch-top-recommendations-for-the-week-march-26/

MRS Oil Gives Bonus Shares Amid Drop in Revenue, Profit in 2017
https://www.businesspost.ng/2018/03/25/mrs-oil-announces-bonus-shares-amid-drop-in-revenue-profit-in-2017/

By Magnus Nmonwu

Cash flow problems; more money going out of the business than is coming in, are among the most significant reasons that Nigerian companies go out of business.

Cash flow isn’t simply about sales or profits—it’s also about your business expenditure and your ability to collect money owing to you.

It is possible to have a good profit margin or experience great revenue growth, yet run into cash flow problems.

For example, you will not be able to pay your rent on time or afford to buy stock because you’re waiting for customers who owe you large amounts of money to pay. Or your pricing might be too low for your overheads.

Here are some ways to take control of your cash flow:

Monitor your cash flow

Managing your cash flow starts with understanding it better. Look closely at the transactions in your business to understand your monthly income and expenses. What are your major costs each month—rent, salaries, stock, electricity, taxes and so on—and when do you pay them? How quickly are your customers paying you?

Rather than using an Excel spreadsheet or your bank statements to track cash flow, consider investing in an accounting solution. A good software package will allow you to generate cash flow statements at a push of a button, where you can see cash flow into the business (customer payments, supplier refunds, tax refunds and so on) and out of the business (expenses and payments). You’ll know that you have an accurate and up-to-date view of your cash position.

Keep a cash flow forecast

Generate a cash flow forecast and set targets for the next six to 12 months. Again, an automated software solution will enable you to generate a cash flow forecast. It should allow you to manually tweak parameters and numbers to cater for anticipated changes such as seasonal variations in sales or annual supplier price increases. This will enable you to make predictions about the gap between your income and expenses and, if appropriate, take corrective action.

Keep on top of billing

Send out invoices promptly and be quick to chase overdue bills. It’s also worth setting out clear payment terms with suppliers from the start of doing business with them. Get to know your customer payment dates and don’t ignore irregularities or delays – a poor paying customer might be about to go out of business. Knowing when you’re due to be paid will help you keep on top of your cash flow.

Stay friendly with lenders

Many businesses need a cash boost from a bank or lender every now and again, particularly when they are starting out, and might need credit or an overdraft to get up and running. Stay on good terms with them and keep them informed of any unforeseen outgoings or changes in forecasts. By developing a good relationship, based on trust, with banks and lenders, they’ll be more likely to treat you favourably should your business need future financial assistance.

Tighten up on your outgoing payments

Assess the frequency with which you pay suppliers, tax bills, utilities and so on – is it possible to pay in instalments or make terms more flexible? Use your powers of negotiation to strike deals that are favourable to your business. Also, check on all those little things you spend money on that can add up, with a view to identifying easy cost-saving opportunities.

Closing words

By keeping on top of your cash flow you’ll be able to deal with problems quickly and efficiently. If worried, talk to an accountant, investor or business mentor. The right accounting software can give you a bird’s-eye view of your business and help you stay on top of everything accounts related. It will help you manage your cash flow easily and effectively, ensuring your business is kept in the best possible financial position, before it becomes a problem.

https://www.businesspost.ng/2018/03/24/five-top-tips-business-owners-can-use-to-solve-cash-flow-problems/

Five Top Tips for Solving Cash Flow Problems
https://www.businesspost.ng/2018/03/24/five-top-tips-business-owners-can-use-to-solve-cash-flow-problems/

Uzoka Assures UBA Shareholders Superior Long-term Return
https://www.businesspost.ng/2018/03/24/uzoka-assures-uba-shareholders-superior-long-term-return/

UBA Posts N79b Profit in 2017, Pays 65 Kobo Per Share Dividend
https://www.businesspost.ng/2018/03/23/uba-posts-n79b-profit-in-2017-pays-65-kobo-per-share-dividend/

Call This Number to Report Any Sharp Practices by Banks
https://www.businesspost.ng/2018/03/23/call-this-number-to-report-any-sharp-practices-by-banks/

Shareholders Hail Transcorp Hotels for N12.45k Dividend Payment
https://www.businesspost.ng/2018/03/23/shareholders-hail-transcorp-hotels-for-n12-45k-dividend-payment/

Senate Confirms Two CBN Deputy Governors, MPC Members
https://www.businesspost.ng/2018/03/22/senate-confirms-two-cbn-deputy-governors-mpc-members/

Slow Economic Expansion Affected Our 2017 Performance—Access Bank
https://www.businesspost.ng/2018/03/22/slow-economic-expansion-affected-our-2017-performance-access-bank/

Japaul Oil Blames Media for Present Stock Market Woes
https://www.businesspost.ng/2018/03/22/japaul-oil-blames-media-for-present-stock-market-woes/

Unity Bank Refutes Milost $1b Deal, Confirms Talks with Investors
https://www.businesspost.ng/2018/03/21/unity-bank-refutes-milost-1b-deal-confirms-talks-with-investors/

Dangote Cement Rakes N805b as Revenue, N204b Profit in 2017
**Declares N10.50k per share dividend
https://www.businesspost.ng/2018/03/20/dangote-cement-rakes-n805b-as-revenue-n204b-profit-in-2017/

FY17: Unilever Nigeria EPS to Grow 94.7% to N1.58k—Analyst
https://www.businesspost.ng/2018/03/20/fy17-unilever-nigeria-eps-to-grow-94-7-to-n1-58k-analyst/

What’s Inside Nigeria’s Foreign Reserves?
https://www.businesspost.ng/2018/03/20/whats-inside-nigerias-foreign-reserves/

Kenya Cuts Benchmark Interest Rate to 9.50%
https://www.businesspost.ng/2018/03/19/kenya-cuts-benchmark-interest-rate-to-9-50/

Will the CBN also cut its rate when it holds its MPC meeting early next month?

Cadbury Nigeria Pays 16 Kobo Per Share Dividend After N300m Profit in 2017
https://www.businesspost.ng/2018/03/19/cadbury-nigeria-pays-16-kobo-per-share-dividend-after-n300m-profit-in-2017/

Stock Recommendation for this Week (March 19)
https://www.businesspost.ng/2018/03/19/stock-recommendation-for-this-week-march-19/

Milost to Invest $1b in Unity Bank, Targets 30% Stake
https://www.businesspost.ng/2018/03/19/milost-to-invest-1b-in-unity-bank-targets-30-stake/

N234b Bills Mature This Week amid Expected Ease in Lending Rates
https://www.businesspost.ng/2018/03/19/n234b-bills-mature-this-week-amid-expected-ease-in-lending-rates/

By Dipo Olowookere

There are plans underground to sell Africa’s leading e-commerce firm, Jumia, to a new investor, Reuters is reporting.

The owners of the firm, Rocket Internet, a German start-up investor, are also considering listing Jumia either in Frankfurt or London.

This is expected to take place this or next year, but according to Reuters, Rocket Internet is expected to “shortly mandate banks for an initial public offering of Jumia.”

Rocket Internet helped set up Jumia in 2012, but the first has been operating with loss for years despite conquering the market space.

But the owners are seeking a way out from the consumer electronics and fashion retailer, in line with its strategy of selling or listing established internet firms.

Quoting sources, Reuters said Berenberg, which has a track record of working with Rocket on capital market transactions, is seen to be in a good position to win a mandate, the people said.

A listing of shares, in a volume of under €200 million ($245.7 million) is expected to be floated, but no information on Jumia’s valuation was immediately available.

Rocket Internet declined to comment.

Last year, Rocket Internet floated online food groups, Delivery Hero and HelloFresh, while the investor is currently also preparing a flotation of its online furniture retailer Home24.

Rocket Internet Chief Executive, Mr Oliver Samwer, had told Reuters earlier this year that the company needs to hold on to its mountain of cash so it can compete with rivals from the United States and China and pounce when investment opportunities arise.

Jumia has ecommerce operations in 14 countries throughout Africa, a continent with 1.2 billion consumers and 15 million small and medium-sized companies. It also features services such as an online hotel booking and a food delivery platform.

Jumia said in January that it had 1 billion visits on its pages across Africa in 2017. It has 50,000 merchants in its ecosystem, where 5 million products, hotels, restaurants and other services are listed.

According to a presentation from Rocket Internet, Jumia saw its adjusted loss before interest, tax, depreciation and amortization widen to €80.7 million in the first nine months of 2017. Revenues edged up to €57.3 million.

https://www.businesspost.ng/2018/03/19/owners-consider-selling-jumia-in-2018/

Owners Consider Selling Jumia in 2018
https://www.businesspost.ng/2018/03/19/owners-consider-selling-jumia-in-2018/

Investors Snub Equity Mutual Funds Despite Stellar Performance
https://www.businesspost.ng/2018/03/16/investors-snub-equity-mutual-funds-despite-stellar-performance/

Osinbajo Suggests Regular Forensic Audit of Banks
https://www.businesspost.ng/2018/03/15/osinbajo-suggests-regular-forensic-audit-of-banks/

Growth in Interest Income Buoys GTBank’s 2017 Earnings
**Rewards Shareholders with N2.40k per share dividend
https://www.businesspost.ng/2018/03/15/growth-in-interest-income-buoys-gtbanks-2017-earnings/

Inflation Drops to 14.33% in February as Food Index Eases to 17.59%
https://www.businesspost.ng/2018/03/15/inflation-drops-to-14-33-in-february-as-food-index-eases-to-17-59/