Chellarams Plc, one of the leading conglomerates on the Nigerian Stock Exchange, has announced a revenue drop of N12.4 billion to N8.733 billion for the financial year ended March, 2018, representing 29.57 per cent.
The company’s result which was released to the NSE showed that the profit before tax went down to N269.9 million from N567.74 million at the comparative period of 2017; profit before tax dropped to 52.46 per cent, while profit after tax also declined by 39.92 per cent, to N200.7 million from N334.06 million at the same period.
Cost of sales depreciated from N9.05 billion in 2017 to N6.92 billion, while gross profit shed 45.67 per cent to N1.82 billion, as against N3.32 billion declared in 2017.
It will be recalled that the company migrated from the Main Board to the ASeM Board of NSE. The company said this was as a result of its inability to meet the free float requirements of the main board.
The NSE requires a free float of 20 per cent for companies listed on the Main Board, but companies listed on the Alternative Securities Market (ASeM) are required to hold a free float of 15 per cent.
However, Chellarams Plc had applied to migrate the ASeM Board following the company’s 14.87 percent free float deficiency on March 20, 2017. A free-float represents the portion of shares of a company that are in the hands of public investors as opposed to locked-in stock held by promoters, company officers, controlling-interest investors, or government.
The free float helps to better calculate the market capitalisation of companies because it provides a more accurate reflection than entire market capitalisation of what public investors consider the company to be worth.
Chellarams is a conglomerate with capabilities that span a diverse array of industries including manufacturing, retail, and distribution, marketing and power generation.
