The A.G. Leventis (Nigeria) Plc has reported group revenue of N11.49 billion for the 2017 financial year, against N12.78 billion achieved in the corresponding period in 2016.
The company, however, expressed optimism that the business would be revived to a profit-making venture as the management has made it a top priority to engage in discussion with potential investors willing to provide financial support that will transform the fortunes of the firm.
Its Chairman, Ahmed Mantey, who disclosed this at the firm’s 59th yearly general meeting in Lagos yesterday, said the profit before tax of the company and the group declined to close at a loss of N2.9 billion and N3.8 billion respectively when compared with that of the previous year.
Mantey attributed this, largely, to the challenging operating environment in 2017 exacerbated by the impact of the economic recession, which lasted till the third quarter, resulting to slow economic activities and poor circular flow of money.
For its Leventis Motors Division, Mantey said the extremely tight market affected the division to record seven per cent decline in revenue from N8.3 billion in 2016 to N7.7 billion during the period under review.
He said the effect of the recession on the economy affected the sales of trucks, as transporters were unable to purchase at the available prices.
Chrisstahl Nigeria Limited, another subsidiary, according to him, also recorded 59 per cent decline in revenue from N281.9 million in 2016 to N116.23 million in 2017.
However, the real estate business posted five per cent rise in revenue due to high occupancy rates achieved in prime locations and increased level of occupancy in its outstations.
According to him, the decline was largely impacted by the decision of the shareholders to keep the business in hibernation mode.
The chairman, however, assured shareholders that the firm’s renewed focus on capacity-building, operational efficiency, financial discipline and aggressive marketing across segments would reposition the group for sustainable growth.
The Founder, Independent Shareholders Association of Nigeria, Sir Sunny Nwosu, lauded the firm for its perseverance amid harsh operating environment.