₦airaland Forum

Let the red continue first so we separate boiz from men

Tendd:
So reddish a week.With this bearish momentum,Gtco and Zenith might go under a 100 Naira.

That's not how it works. You have to care or else someone who does not have the wellbeing of nNigerians in mind will enter. Evil triumphs because good men do nothing. It is not enough to say ' I only care about the wellbeing of Nigerians ' because who support directly impacts that metric

megawealth01:
I really don't care about who becomes NAIJA President. I only care about the wellbeing of Nigerians

If you have been following up my posts from day one on any platform we share... You'd understand my true position about my beloved humanity 💕

Oasisblue:
Tinubu will continue as president. Know this know peace.

Carry am go give him now..una go just dey talk like its his birthright

Any government that is insensitive to the plight of its people in this media age, will learn NEW THINGS in the future

Morroco 💕

Wealth Transfer Process Popularly seen and referred to as the bear market.

The experience in the market this week is one of the reasons we advice that investors should have long term in view when approaching any investment particularly an investment that has to do directly or indirectly with the equity market.

Wealth is about to be transferred from the impatient to the patient investor.

This is how it has always played out over the years and will still continue.
Major bears I have seen were in 2008 to 2009 and 2020.

There is only one wish I can hear smart investor making right now - "I wish I have cash I will buy more of fundamentally sound and dividend paying stocks"

The experience is also why you hear this statement in the investment arena - ... don't wait to buy stock but rather buy stock and wait

Wishing all the smart investors strong Green portfolios after now.

Aradel to pay N23

Have you seen their result? I am more interested in this than the dividend

thebargainhunte:
Aradel to pay N23

Aradel FY2025

https://doclib.ngxgroup.com/Financial_NewsDocs/47218_ARADEL_HOLDINGS_PLC-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2025_FINANCIAL_STATEMENTS_JUNE_2026.pdf

This result reminds me a lot of one other company

deathwing:
Aradel FY2025

https://doclib.ngxgroup.com/Financial_NewsDocs/47218_ARADEL_HOLDINGS_PLC-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2025_FINANCIAL_STATEMENTS_JUNE_2026.pdf

Thanks. Still waiting for Q12026

deathwing:
Aradel FY2025

https://doclib.ngxgroup.com/Financial_NewsDocs/47218_ARADEL_HOLDINGS_PLC-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2025_FINANCIAL_STATEMENTS_JUNE_2026.pdf

LOL. I consider reported earnings somewhat inflated for valuation purposes.

Sunrisepebble:
This result reminds me a lot of one other company

Ofcourse. It’s reflected in the final dividend paid

Oasisblue:
LOL. I consider reported earnings somewhat inflated for valuation purposes.

yMcy56:
It's someone else's story.

Thomas Wyatt Nigeria Plc’s unaudited financial results for the first quarter ended 30th June 2025 reveal a dramatic operational turnaround. Driven by an exponential growth in sales volume, both the Group and the Company successfully reversed deep historical losses to post positive operational profits.
However, the report also highlights critical underlying imbalances. The standalone Company remains heavily burdened by a massive capital deficit (negative equity) and severe working capital constraints, meaning its operational survival is highly reliant on its subsidiary structures.
1. Comprehensive Profitability Analysis
Top-Line Growth and Revenue Performance
• Exponential Surge: Revenue for both the Group and the Company grew by 603.46%, climbing from ₦5.92 million in Q1 2024 to ₦41.65 million in Q1 2025.
• Segment Breakdown: This entire volume is derived within Nigeria from a single core business segment: the manufacturing and marketing of school exercise books, hard-cover note books, pads, drawing books, and envelopes.
Cost Efficiency & Production Dynamics
• Direct Costs: Cost of sales increased by 98.52% to ₦24.16 million (up from ₦12.17 million in 2024). This growth rate was significantly slower than revenue expansion, proving strong manufacturing scalability.
• Cost Composition: Raw materials dominate production costs at ₦21.81 million (90.27% of total direct costs). Outsource/design fees took up ₦0.70 million, while production plant depreciation dropped to ₦1.66 million.
• Gross Profit Margin: The business successfully recovered from a gross loss of (₦6.25 million) in 2024 to capture a Gross Profit of ₦17.49 million, establishing a stable gross profit margin of 41.99%.
Operating and Overhead Expenses
• Administrative Reductions: Group administrative overheads fell by 9.0% to ₦8.87 million. Standing out within these costs were salaries and wages at ₦4.15 million, legal/professional fees at ₦1.63 million, and non-factory depreciation at ₦1.31 million.
• Distribution Scaling: Distribution and marketing expenses rose moderately by 50.95% to ₦3.74 million, fueled mostly by rising commission/discounts (₦3.03 million) required to drive the higher sales volume.
Net Profit Turnaround
• Operating Results: Operating profits reached ₦4.88 million for the Group and ₦6.19 million for the standalone Company.
• Bottom-Line Reversal: Both entities completely wiped out their severe prior-year net losses of ~ (₦19.20 million) and ~ (₦17.76 million). No tax provisions were mapped to this quarter.
Profitability Metric (Q1 Ended June 2025) The Group (₦'000) The Company (₦'000)
Revenue 41,645 41,645
Cost of Sales (24,156) (24,156)
Gross Profit 17,488 17,488
Administrative Expenses (8,869) (7,564)
Distribution Expenses (3,736) (3,736)
Net Profit For The Period 4,884 6,189
2. Balance Sheet & Financial Health Assessment
Group Asset vs Liability Composition (June 2025)
[██████████████████████████████ 100%] Total Assets: ₦1,013,166
[███████████████░░░░░░░░░░░░░░░ 57.7%] Total Liabilities: ₦585,038
[█████████████░░░░░░░░░░░░░░░░░ 42.3%] Total Equity: ₦428,128
Asset Structure
• Non-Current Assets: Group long-term assets stand at ₦963.88 million. This is heavily anchored by property, plant, and equipment valued at ₦963.38 million. The standalone Company holds far less property structure (₦333.16 million).
• Current Assets: Highly restricted across both entities at ₦49.29 million. This includes static inventories of ₦10.52 million, trade receivables of ₦11.70 million, other prepayments of ₦19.09 million, and cash balances of ₦7.98 million.
Liability and Debt Exposure
• Long-Term Debt: Both structures are leveraged by a ₦265.00 million long-term loan. Defined benefit employee obligations stand at ₦52.40 million for the Group.
• Current Obligations: Short-term liabilities are an area of concern. Group trade/other payables spiked significantly from ₦131.90 million in March 2025 to ₦205.23 million in June 2025. The Company's short-term trade payables are even more severe at ₦362.66 million. Both carry an un-cleared bank overdraft of ₦8.81 million.
Equity Crisis (The Standalone Company)
• The Group View: Total Group equity looks healthy at ₦428.13 million, protected heavily by a ₦681.88 million Revaluation Surplus.
• The Company View: The parent company is technically insolvent on a standalone basis. It shows a Total Negative Equity of (₦329.25 million). This capital wipeout is driven by an enormous accumulated Retained Loss of (₦610.81 million), which completely eclipses its paid-up share capital of ₦198.00 million and share premium of ₦83.56 million.
3. Cash Flow and Liquidity Analysis
The Group’s operational turnover has not yet translated into positive liquidity creation:
• Negative Operating Cash Flow: Despite posting accounting profits, the Group suffered a net cash outflow from operating activities of (₦0.83 million).
• Working Capital Working Drag: Cash generation was choked by severe working capital movements. While collecting trade receivables freed up ₦18.70 million, this was entirely wiped out by a ₦18.13 million cash contraction used to pay down trade and other payables.
• Deepening Cash Deficit: Because no investing or financing cash movements occurred during the quarter, the net cash position deteriorated further. Net cash and cash equivalents sank from a negative (₦0.71 million) at the start of April to a deeper deficit of (₦1.53 million) by June 30, 2025, driven entirely by the unmitigated bank overdraft.
4. Strategic SWOT Analysis
Strengths (S)
• Phenomenal Revenue Scalability: Capability to expand sales volume by over 600% while implementing strong production cost control.
• Valuable Underlying Fixed Assets: Massive Group land and building asset bases (₦963.38 million) provide strong structural support to the consolidated balance sheet.
Weaknesses (W)
• Severe Standalone Insolvency: The parent company's negative equity position of (₦329.25 million) endangers its legal corporate durability if isolated from the group.
• Negative Cash Generation: Operations are currently consuming liquid cash instead of generating it, resulting in a persistent net cash overdraft position.
Opportunities (O)
• Market Expansion: Utilizing the robust local demand for educational materials within Nigeria to scale alternative high-margin stationary product segments.
• Debt Restructuring: Negotiating the long-term loan of ₦265.00 million or converting trade payables to equity to alleviate balance sheet strain.
Threats (T)
• Raw Material Volatility: Since raw materials represent over 90% of the manufacturing cost base, any adverse movement in exchange rates or inflation will rapidly destroy gross margins.
• Severe Working Capital Choke: If suppliers tighten credit options (evident from the ₦18.13 million cash drain to clear trade payables), factory production could stall abruptly due to low liquidity.

https://doclib.ngxgroup.com/Financial_NewsDocs/47216_THOMAS_WYATT_NIG._PLC.-_QUARTER_1_-_FINANCIAL_STATEMENT_FOR_2026_FINANCIAL_STATEMENTS_JUNE_2026.pdf

Aradel Holdings Plc’s 2025 audited financial statements showcase a year of extraordinary strategic scaling and balance sheet expansion. The primary driver of the report is the massive year-end step acquisition of ND Western Limited (NDW) and Renaissance Africa Energy Company Limited (RAEC). This single corporate action transformed the Group’s asset base from ₦1.75 trillion to ₦9.90 trillion.
Operationally, the Group recorded strong underlying performance, with a 20.35% increase in revenue. However, accounting profits were significantly inflated by non-cash, transaction-driven adjustments, such as a ₦217.10 billion provisional gain on bargain purchase and a ₦393.19 billion translation gain related to the business combinations.
1. Comprehensive Profitability Analysis
Revenue and Core Margins
• Top-Line Growth: Consolidated revenue grew by 20.35%, moving from ₦581.15 billion in 2024 to ₦699.43 billion in 2025. The standalone parent company functions as a holding entity and records no direct operating revenue.
• Cost of Sales Surge: Direct operating and production costs spiked by 74.16% to ₦391.22 billion (up from ₦224.63 billion in 2024). This disproportionate cost inflation severely compressed the Gross Profit Margin from 61.35% in 2024 to 44.07% in 2025.
• Gross Profit: Absolute gross profit fell by 13.55% to ₦308.21 billion.
Transaction-Driven Adjustments and Non-Operating Income
The operational compression was completely masked by one-off accounting credits arising from the acquisition completed on 30–31 December 2025:
• Gain on Bargain Purchase: The Group recorded a provisional accounting credit of ₦217.10 billion, which occurs when the fair value of net assets acquired exceeds the purchase price.
• Translation Gain on Business Combination: An additional non-cash credit of ₦393.19 billion was recognized in the income statement, alongside a massive exchange loss under other items of (₦89.66 billion).
• Share of Associate Profits: Before taking full control, Aradel's equity-accounted share of profits from its associate investments brought in ₦109.52 billion.
Overheads and Net Income
• Administrative Scaling: General and administrative overheads increased by 65.63% to ₦93.13 billion, reflecting expanding group operations.
• Pre-Tax and Net Profits: Profit before taxation expanded by 163.60% to ₦835.01 billion. After accounting for a tax expense of ₦77.67 billion, consolidated Profit After Taxation landed at ₦757.34 billion.
• Earnings Per Share (EPS): Basic and diluted EPS surged from ₦59.35 to ₦173.62.
Consolidated Income Statement Transformation (2024 vs 2025)
2024: ████░ ₦259.07 Billion (Net Profit)
2025: ████████████░ ₦757.34 Billion (Net Profit - *Heavily driven by non-cash acquisition gains*)
2. Balance Sheet & Financial Health Assessment
The consolidation of NDW and RAEC assets on 31 December 2025 completely restructured the balance sheet framework. Note: Because the acquisition date was at the very end of the year, these subsidiaries' asset and liability balances are fully integrated into the balance sheet, but their historical 2025 revenues are not included in the income statement.
Group Balance Sheet Restructuring (In ₦ Trillions)
Asset Base 2024: [█ 1.75 trillion]
Asset Base 2025: [██████████ 9.90 trillion]
Asset Base Expansion
• Property, Plant and Equipment (PPE): PPE scaled exponentially from ₦676.64 billion to ₦5.13 trillion, highlighting the immense oil and gas infrastructure absorbed from the new subsidiaries.
• Liquidity Inflow: Current assets jumped to ₦3.39 trillion, driven by trade receivables scaling to ₦1.73 trillion and cash/cash equivalents skyrocketing from ₦411.80 billion to ₦1.50 trillion.
• Deferred Tax Assets: The Group recognized ₦891.46 billion in deferred tax assets.
Liabilities and Structural Obligations
Total liabilities grew from ₦345.73 billion to ₦7.75 trillion, shifting the Group into a highly leveraged position:
• Decommissioning Liabilities: Future oil field environmental cleanup obligations expanded dramatically from ₦36.94 billion to ₦1.46 trillion.
• Borrowings: Long-term debt climbed to ₦1.56 trillion, while short-term borrowings rose to ₦438.92 billion.
• Contingent Consideration: A substantial ₦1.42 trillion liability was provisionally recognized under current liabilities, representing potential future payments linked to the acquisitions.
• Trade Payables: Short-term operational payables ballooned to ₦2.40 trillion.
Equity and Dividends
• Total Equity: Shareholders' equity reached ₦2.15 trillion, with ₦657.98 billion held as non-controlling interests (NCI) belonging to minority partners in the new subsidiaries.
• Robust Dividends: Despite the massive capital deployment, the board recommended a final dividend of ₦23.00 per share. Combined with the ₦10.00 interim dividend paid earlier in the year, the total dividend payout for 2025 stands at ₦33.00 per share (Totaling ₦143.38 billion).
3. Cash Flow and Capital Allocation Analysis
The cash flow statement reflects a massive real cash expansion underneath the one-off accounting treatments.
• Operating Cash Flows: Net cash generated from operations stood at a strong ₦208.07 billion, down from ₦304.57 billion in 2024 due to significant working capital ties in trade receivables (₦73.74 billion outflow) and inventory builds (₦27.09 billion).
• Investing Inflows via Acquisition: While Aradel deployed ₦138.73 billion directly into internal PPE capital expenditures, it registered a net cash inflow from investing activities of ₦680.53 billion. This was driven entirely by a ₦832.53 billion net cash injection representing the existing cash balances inside NDW and RAEC that were absorbed on the consolidation date.
• Financing Dynamics: Financing activities generated a net ₦219.59 billion. The group raised ₦503.79 billion in additional borrowings, utilized ₦116.58 billion to repay existing loans, and distributed ₦139.04 billion in cash dividends to parent shareholders.
• Closing Cash Balance: Net cash and cash equivalents grew substantially to close the year at ₦1.50 trillion.
4. Strategic SWOT Analysis
Strengths (S)
• Unprecedented Asset Scale: The step acquisition vaults Aradel into an elite tier of energy companies, managing ₦9.90 trillion in assets with vast oil and gas reserves.
• Excellent Liquid Cash Position: Closing the year with ₦1.50 trillion in liquid cash provides massive financial flexibility for deployment in 2026.
Weaknesses (W)
• Compressed Core Operating Margins: Cost of sales outpaced organic revenue growth, dropping the gross profit margin by more than 17 percentage points.
• Heavy Accounting Distortion: A significant portion of net income (₦610.29 billion) stems from non-cash, provisional acquisition accounting and translation gains, rather than direct physical production.
Opportunities (O)
• Synergy and Integration: Full commercial integration of NDW and RAEC starting 1 January 2026 should unlock massive upstream/midstream operational efficiencies and top-line expansion.
• Refining Valuation Estimates: Finalizing the provisional Purchase Price Allocation (PPA) could optimize long-term asset depreciation structures and tax assets.
Threats (T)
• Explosive Growth in Liabilities: Inheriting ₦1.46 trillion in decommissioning cleanup costs and ₦1.42 trillion in current contingent liabilities creates severe balance sheet pressure if energy prices decline.
• Integration and Transition Risks: Managing a 465% growth in liability structures while transitioning to a new external auditor (KPMG replaces Deloitte) will test corporate governance stability.

https://doclib.ngxgroup.com/Financial_NewsDocs/47218_ARADEL_HOLDINGS_PLC-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2025_FINANCIAL_STATEMENTS_JUNE_2026.pdf

Sunrisepebble:
Ofcourse. It’s reflected in the final dividend paid

Is it true that Aradel's dividend yield is higher than Seplat's for the financial year 2025?

The audited 2025 financial statements of C&I Leasing Plc confirm a paradox of stellar top-line earnings growth vs structural bottom-line chokes. The primary threat to long-term equity returns is the clear evidence of severe borrowing cost inflation consuming its operational success.
A deeper, data-driven analysis from the 2025 audited accounts explains why the stock has experienced price stagnation around the ₦6.00 mark.
1. The Earnings vs Financing Divergence (2025 Audited Data)
• Impressive Revenue Scaling: The Group achieved an outstanding 36.5% increase in Gross Earnings, jumping from ₦36.74 billion in 2024 to ₦50.15 billion in 2025. This was driven by high volume utilization across its core fleet management, marine logistics, and personnel outsourcing contracts.
• Excellent Operating Profit: Operating profit rose 57% to ₦15.97 billion (up from ₦10.17 billion in 2024), proving that the core day-to-day operations are highly profitable.
• The Finance Cost Wall: Because leasing requires massive leverage to purchase capital assets (vehicles, ships, cranes), the company is fully exposed to high interest rates. Servicing corporate bonds and short-term loans consumed a massive portion of its operating revenue.
• Profit Compression: After deducting these immense financing fees, Profit Before Tax stood at a compressed ₦2.98 billion (up only marginally from ₦2.68 billion in 2024).
• Net Profit Paper Adjustments: Although final Profit After Tax rose to ₦3.91 billion due to deferred tax adjustments, the real cash generated and available for distribution to equity shareholders remains tightly constrained.
2. Financial Position & Balance Sheet Vulnerability
• Total Assets: The Group holds ₦141.82 billion in total assets. However, these are predominantly long-term, illiquid capital assets (fleet vehicles and marine hardware) that deplete over time via heavy depreciation cycles.
• Total Equity vs Debt: Total shareholders' equity sits at ₦51.15 billion. While its Capital Adequacy Ratio is stable at 14%, the massive volume of debt liabilities compared to its net equity creates a rigid capital structure that prevents the company from pivoting quickly during macroeconomic shocks.
3. Why the Stock is Stagnant on the NGX
• The Share Capital Dilution: In recent cycles, the company capitalized ₦589.72 million from its share premium account to execute a massive 2-for-3 bonus share issue. While bonus shares reward existing holders on paper, they expand the total number of outstanding shares floating in the market.
• Diluted Per-Share Value: This expanded share volume means future earnings are diluted across a much wider base. Even though EPS officially hit 122.77 kobo in 2025, the market is discounting the share price because a higher volume of shares requires significantly more cash to deliver a high per-share dividend.
• Sub-Par Dividend Yield: The board approved a 20-kobo dividend per share for the financial year. At a trading price of ₦6.00, this yields a low 3.33% cash return. Long-term institutional investors are choosing to ignore the stock because 3.33% fails to provide a viable hedge against local inflation, keeping trading liquidity flat.
Strategic Recommendation
Capital Deployment Verdict: SELL / SWAP
[████████████████████ 100%] Gross Income Is Growing
[██████████░░░░░░░░░░ 50%] Operating Profit Is Maximized
[██░░░░░░░░░░░░░░░░░░ 10%] Free Cash to Shareholder Diluted by High Interest & Bonus Issues
While C&I Leasing is a stable, well-managed operational company, it is structurally a debt-servicing machine for its lenders rather than a wealth-compounding asset for its retail shareholders.

deathwing:
There no 'millions' of other people. There are only 1.3m max. The stats are public, that's why I say it's not an achievement metric. Literally less than 1.5m people are in the entire Nigerian stock market.

Hypocrites. When it goes south, they blame it on all manner of government policies. Now that it goes up, they say it has nothing to do with government policies. Na wah.

deathwing:
Aradel FY2025

https://doclib.ngxgroup.com/Financial_NewsDocs/47218_ARADEL_HOLDINGS_PLC-_QUARTER_5_-_FINANCIAL_STATEMENT_FOR_2025_FINANCIAL_STATEMENTS_JUNE_2026.pdf

This one is going back to 500

Ah, why do you say so.
I think the result is average but don’t see it declining that much

Agbalowomeri:
This one is going back to 500

Aradel N33/1750 *100=1.9%
SEPLAT FY25 $25c*1400 / 9100 *100 =3.8%

opadiya:
Is it true that Aradel's dividend yield is higher than Seplat's for the financial year 2025?

Sunrisepebble:
Aradel N33/1750 *100=1.9%
SEPLAT FY25 $25c*1400 / 9100 *100 =3.8%

But these were not the prices at the end of the FY

No matter; those are the dividend yields when you buy today. Isn't that what should move prices?

deathwing:
But these were not the prices at the end of the FY

deathwing:
But these were not the prices at the end of the FY

Exactly my thought.It started its major swing this year.

Aradel 33/670*100=4.925%
Seplat $.25c*1400=N350
350/5089*100=6.878%
The conclusion is the same. I used price as at dividend date declaration for the last one

deathwing:
But these were not the prices at the end of the FY

CONHALLPLC — wave count from May/June played out straight into the wave 1 target. 📈
Profit-taking isn't greed, it's discipline and part of the game. Bank the gain, wait for the next setup. Wave 2 correction likely next.

Sunrisepebble:
Aradel 33/670*100=4.925%
Seplat $.25c*1400=N350
350/5089*100=6.878%
The conclusion is the same. I used price as at dividend date declaration for the last one

Many thanks.