2020/012 UNAUDITED FINANCIAL REPORT FOR THE YEAR … · RED STAR EXPRESS PLC FOR THE YEAR ENDED...

2020/012

Group Financials

2020/012

RED STAR EXPRESS PLC

UNAUDITED FINANCIAL REPORT

FOR THE YEAR ENDED 31 MARCH 2020

UNAUDITED FINANCIAL HIGHLIGHTS

FOR THE YEAR ENDED 31ST MARCH, 2020

MAJOR STATEMENT OF COMPREHENSIVE INCOME ITEMS

Interim Period Year to Date Interim Period Year to Date

Jan'20 - Mar'20 Apr'19 - Mar'20 Jan'19 - Mar'19 Apr'18 - Mar'19

N'000 N'000 N'000 N'000

TURNOVER 2,782,882 10,623,421 2,519,953 10,066,576

PROFIT BEFORE TAX 226,232 781,409 247,577 743,468

PROFIT AFTER TAX 153,838 531,358 168,351 466,247


Jan'20 - Mar'20 Apr'19 - Mar'20 Jan'19 - Mar'19 Apr'18 - Mar'19

N'000 N'000 N'000 N'000

N' 000 N' 000 N' 000 N' 000

TURNOVER 1,721,830 6,289,699 1,553,315 5,849,869

PROFIT BEFORE TAX 143,585 512,157 304,361 658,600

PROFIT AFTER TAX 97,638 348,267 206,965 414,774

MAJOR STATEMENT OF FINANCIAL POSITION ITEMS

Mar-20 Mar-19 Mar-20 Mar-19

N' 000 N' 000 N' 000 N' 000

TOTAL ASSETS 6,787,294 5,548,031 5,201,279 4,379,000

SHAREHOLDERS FUND 4,339,842 2,762,923 3,458,468 2,064,640

SHARE CAPITAL 463,176 294,748 463,176 294,748

SHARE PREMIUM 1,438,301 296,433 1,438,301 296,433

REVENUE RESERVE 2,438,365 2,171,742 1,556,991 1,473,459

INFORMATION PER 50 KOBO ORDINARY SHARE


NO OF ORDINARY SHARES 926,352 589,497 926,352 589,497

SHAREHIOLDERS FUND 4,339,842 2,762,923 3,458,468 2,064,640

EARNINGS PER SHARE (KOBO) - Ordinary 90 79 59 70

EARNINGS PER SHARE (KOBO) - Diluted 57 - 38 -

RETURN ON EQUITY(%) - Ordinary 19 17

RETURN ON EQUITY(%) - Diluted 12 -

NET ASSET PER SHARE(KOBO) 468 469 373 350

THE COMPANYTHE GROUP

THE GROUP THE COMPANY

Current Period Comparative Period


THE GROUP

THE COMPANY



CONSOLIDATED STATEMENT OF

COMPREHENSIVE INCOME


Interim Period Year to Date Interim Period Year to Date Interim PeriodYear to Date Interim Period Year to Date

Jan'20 - Mar'20 Apr'19 - Mar'20 Jan'19 - Mar'19 Apr'18 - Mar'19 Jan'20 - Mar'20 Apr'19 - Mar'20 Jan'19 - Mar'19 Apr'18 - Mar'19

N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000

Note

Turnover 1 2,782,882 10,623,421 2,519,953 10,066,576 1,721,830 6,289,699 1,553,315 5,849,869

Cost of sales 3 (2,118,715) (7,972,923) (1,841,392) (7,290,061) (1,261,154) (4,465,847) (1,053,516) (3,981,358)

Gross profit 664,167 2,650,497 678,560 2,776,515 460,676 1,823,852 499,799 1,868,511

Other income 2 185,967 197,727 44,864 119,397 86,210 95,478 126,821 134,044

850,135 2,848,225 723,425 2,895,912 546,885 1,919,330 626,620 2,002,555

Administrative and Other Operating Expenses 4 (531,792) (1,851,893) (446,339) (1,799,242) (373,781) (1,296,606) (295,223) (1,176,437)

Staff Gratuity 5 638 (15,511) (3,761) (165,848) 965 (10,168) (3,013) (111,669)

Depreciation & Amortisation 6 (66,554) (146,954) (25,747) (166,242) (28,523) (103,298) (24,022) (65,981)

Impairment Loss - - - - - - - -

Effect of change in estimate useful life of PPE - - - - - - - -

Total operating Expences (597,708) (2,014,359) (475,848) (2,131,332) (401,338) (1,410,071) (322,259) (1,354,087)

Finance Income 7 8,749 17,783 1,478 12,794 8,260 13,120 1,478 10,131

Finance Costs 7 (34,943) (70,240) (8,260) (33,906) (10,222) (10,222) - -

Profit Before interest and Tax 226,232 781,409 247,577 743,468 143,585 512,157 304,361 658,600

Interest and similar charges - - - - - - - -

Provision for diminution in investments

Profit Before Income Tax 226,232 781,409 247,577 743,468 143,585 512,157 304,361 658,600

Income Tax 8.1 (72,394) (250,051) (79,225) (277,222) (45,947) (163,890) (97,396) (243,826)

Profit from continuing operation 153,838 531,358 168,351 466,247 97,638 348,267 206,965 414,774

Profit attributable to:

Owners of the company 153,838 531,358 168,351 466,247 97,638 348,267 206,965 414,774

Non controlling Interests - - - - - - - -

Profit for the period 153,838 531,358 168,351 466,247 97,638 348,267 206,965 414,774

Earnings per share

Basic earnings per share (kobo) 29 90 79 38 70

Diluted earnings per share (kobo) 57 -

Number of ordinary shares in issue 29 926,352 589,497 926,352 589,497

The Group


The Company



UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31ST MARCH, 2020


Note N'000 N'000 N'000

ASSETS

Non Current Assets

Property, plant and equipments 9 1,612,444 1,388,952 693,553 691,856

Intangible Assets 10 61,290 47,508 59,357 47,508

Right Of Use of Assets 11 31,946 26,113

Long Term Prepayments 15 138,644 90,149 38,644 17,861

Financial Assets Available for Sale 11.1 395 535 395 535

Investment in subsidiary 11.2 - - 374,065 374,065

Deposit for shares - - 1,500 -

Total Non Current Assets 1,844,719 1,527,144 1,193,626 1,131,825

Current Assets

Inventories 12 51,652 50,901 44,865 46,838

Trade debtors 13 1,861,848 2,359,211 843,239 1,397,801

Other receivables 14 1,055,933 995,019 400,044 420,440

Current prepayments 15 142,727 93,422 119,593 84,363

Due from related company 28 942,291 901,936

Cash and cash equivalents 16 1,830,415 522,334 1,657,621 395,797

Total Current Assets 4,942,575 4,020,887 4,007,653 3,247,175

TOTAL ASSETS 6,787,294 5,548,031 5,201,279 4,379,000

EQUITY AND LIABILITIES

LIABILITIES

Non-current liabilities

Deferred taxation 18 172,274 172,274 50,380 50,380

Provision for liabilities and charges

Finance Lease Obligation 95,891 33,925

Employee Benefit Liabilities 44,752 46,336 44,365 44,365

Total Non Current Liabilities 312,917 252,535 94,745 94,745

Current liabilities

Trade creditors 405,133 708,924 402,702 699,710

Other creditors and accruals 17 1,261,581 1,442,498 966,309 1,169,779

Due to related companies 28 55,045 127,233

Finance Lease Obligation 195,210 90,392 45,237 -

Income tax liabilities 8.2 272,610 290,759 178,772 222,894

Total Current Liabilities 2,134,535 2,532,573 1,648,065 2,219,615

TOTAL LIABILITIES 2,447,452 2,785,108 1,742,811 2,314,360

Equity

Share capital 19 463,176 294,748 463,176 294,748

Share premium 1,438,301 296,433 1,438,301 296,433

Retained Earnings 2,438,365 2,171,742 1,556,991 1,473,459

Total Equity 4,339,842 2,762,923 3,458,468 2,064,640

TOTAL EQUITY AND LIABILITIES 6,787,294 5,548,031 5,201,279 4,379,000

Sola Obabori Babura Auwalu Badamasi

Group Managing Director Chief Financial Officer

FRC/2016/IODN/00000015290 FRC/2016/ICAN/00000014402

The CompanyThe Group

This consolidated financial statements were approved by the Board on the 3rd of June 2020 and signed by:

RED STAR EXPRESS PLCCONSOLIDATED STATEMENT OF CHANGES IN EQUITY


The Group The Company

Issued

Capital

Share

Premium

Retained

Earnings Total

Issued

Capital

Share

Premium

Retained

Earnings Total

N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000

As at 1st April 2019 294,748 296,433 2,171,742 2,762,923 As at 1st April 2019 294,748 296,433 1,473,459 2,064,640

Effect of adoption of new

accounting standard (11,251)


accounting standard (11,251)

At 1st January 2019 as restated 294,748 296,433 2,160,491 2,751,672 At 1st January 2019 as restated 294,748 296,433 1,462,208 2,053,389

Profit for the year 531,358 531,358 Profit for the year 348,267 348,267

Other comprehensive income: Other comprehensive income:

Re-measurement gain/(loss) on

defined benefit plan


defined benefit plan -

Dividend (253,483) (253,483) Dividend (253,483) (253,483)

Right issue of 336,855,291 ordinary

shares of 50 kobo each 168,428 1,141,869 1,310,296

Right issue of 336,855,291

ordinary shares of 50 kobo each 168,428 1,141,869 1,310,296

As at 31st March 2020 463,176 1,438,302 2,438,365 4,339,842 As at 31st March 2020 463,176 1,438,302 1,556,991 3,458,468

Consolidated Statement of Changes in Equity Consolidated Statement of Changes in Equity

For the period ended 31 March 2019 For the period ended 31 March 2019Issued

Capital

Share

Premium

Retained

Earnings Total

Issued

Capital

Share

Premium

Retained

Earnings Total

N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000

As at 1st April 2018 294,748 296,433 1,936,404 2,527,585 As at 1st April 2018 294,748 296,433 1,282,609 1,873,790


accounting standard (33,664) (33,664)


accounting standard (26,523) (26,523)

At 1st January 2018 as restated 294,748 296,433 1,902,740 2,493,921 At 1st January 2018 as restated 294,748 296,433 1,256,086 1,847,267

Profit for the year 466,247 466,247 Profit for the year 414,774 414,774

Other comprehensive income: Other comprehensive income:


defined benefit plan 38,396 38,396


defined benefit plan 38,396 38,396

Dividend (235,796) (235,796) Dividend (235,796) (235,796)

As at 31st March 2019 294,748 296,433 2,171,587 2,762,768 As at 31st March 2019 294,748 296,433 1,473,460 2,064,641



NOTE


N'000 N'000 N'000 N'000

Cash flows from operating activities:

Cash receipts from customers 9,509,760 9,762,597 5,795,541 5,561,072

Payment to suppliers and employees (8,648,834) (8,820,619) (5,332,545) (5,061,768)

Taxes paid (24,364) (83,774) (15,547) (13,551)

Cash outflow from long term prepayment (120,208) (120,417) (102,040) (108,979)

- - - -

Net cash provided by operating activities 21 716,354 737,787 345,410 376,774

Cash flows from investing activities:

Acquisition of Property Plant & Equipment 9 (895,729) (466,243) (195,251) (213,742)

Purchase of Intengible assets 10 (56,892) (40,335) (54,492) (40,335)

Proceeds from sale of PPE 300,233 1,928 233 887

Refund from PPE Vendor 2,398 2,398

Interest received 7 17,783 12,794 13,120 10,131

Dividend received - - 76,061 87,517

Net cash provided by investing activities (634,606) (489,458) (160,329) (153,144)

Cash flows from financing activities: - - - -

Proceeds from issue of share capital 1,318,037 - 1,318,037 -

Proceeds from Long term burrowings 300,000 48,300 - -

Term Loan/Lease repayment (90,392) (71,395) (4,421) -

Interest Paid (70,240) (33,906) (5,801) -

Dividend paid (231,071) (216,697) (231,071) (216,697)

Net cash provided by financing activities 1,226,333 (273,698) 1,076,744 (216,697)

Net (decrease)/increase in cash and cash

equivalents 1,308,082 (25,369) 1,261,824 6,933

Net foreign exchange difference - (2,165) - (2,165)

Cash and cash equivalents at the

beginning of the year 522,334 549,868 395,797 391,029

Cash and cash equivalents at the

end of the year 22 1,830,416 522,334 1,657,621 395,797

NB: A total sum of 1.309billion naira was successfully raised from the stock market in the form of Right Issues

from Existing shareholders of Red Star Express Plc. These funds were received towards the end of the financial

year and it forms part of the above report.

GROUP THE COMPANY

Notes to the Accounts (Statement Of Comprehensive Income)


1 TURNOVER

Interim

Period Year to Date

Interim

Period Year to Date

Interim

Period Year to Date Interim Period Year to Date


N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000

Courier 1,721,830 6,289,699 1,535,223 5,849,869 1,721,830 6,289,699 1,553,315 5,849,869

Logistics 309,882 1,563,624 427,477 1,688,197

Freight 360,830 1,274,633 218,969 872,121

Support Service 390,341 1,495,464 338,284 1,656,389

2,782,882 10,623,421 2,519,953 10,066,576 1,721,830 6,289,699 1,553,315 5,849,869

2 OTHER OPERATING INCOME

a. Other Income

Profit on Disposals of fixed Assets 157,368 157,406 958 1,928 195 233 887 887

Other Sundry income 28,599 40,321 43,906 117,469 14,588 19,184 38,417 45,640

185,967 197,727 44,864 119,397 14,783 19,417 39,304 46,527

b. Investment Income

Related Company Dividend 76,061 76,061 87,517 87,517

71,427 76,061 87,517 87,517

OTHER OPERATING INCOME 185,967 197,727 44,864 119,397 86,210 95,478 126,821 134,044

3 COST OF SALES

Staff cost 394,289 1,550,869 277,353 1,266,652 189,855 736,187 155,207 565,158

Pension 25,178 78,122 24,416 72,421 11,004 40,996 7,520 26,317

Gratuity 23,511 61,193 25,443 59,463 17,748 43,726 17,503 43,893

Medical 52,510 177,281 51,997 173,702 19,999 72,301 19,435 62,063

Training 2,397 17,003 1,861 16,857 1,959 13,697 3,859 13,640

International delivery costs 489,273 1,924,489 401,275 1,964,649 367,897 1,362,542 256,141 1,365,554

Domestic freight & Local deliveries 346,619 1,260,858 273,185 1,174,668 281,322 925,184 253,661 769,089

Vehicle running costs 279,510 974,669 231,101 811,034 85,484 276,509 88,599 255,700

Agent costs 89,075 317,316 83,931 278,701 87,667 312,344 82,212 275,644

Local transport 89,781 287,505 84,906 235,133 79,464 197,218 72,214 193,628

Clearing and documentation charges 221,741 491,613 252,713 494,607 58,952 158,673 41,230 139,048

Projects and Consolidation expenses 19,108 201,060 - 205,000 0

Rents ant rates of outlets 10,208 130,535 15,623 109,892 16,646 106,606 5,951 78,254

Insurance 6,175 51,935 16,724 53,708 1,378 21,728 5,347 21,443

Depreciation 49,003 319,107 75,618 273,165 24,711 93,855 21,499 80,822

Direct Operational Costs 20,336 129,368 25,247 100,409 17,067 104,281 23,137 91,106

2,118,715 7,972,923 1,841,392 7,290,061 1,261,154 4,465,847 1,053,516 3,981,358


Current Period Comparative Period Current Period Comparative Period

4 Administrative & Other Operating Expenses

Repairs and maintenance 55,958 273,781 29,950 269,896 40,411 165,627 24,475 146,837

Transportation, Selling and travelling costs 913 96,329 7,892 90,560 21,312 99,283 32,905 79,944

Legal and professional charges 23,191 51,725 23,787 49,016 17,415 34,225 18,001 28,383

Publicity and promotion 15,422 42,119 22,996 37,817 8,420 20,094 16,190 11,370

Communication and telephone 26,396 82,876 22,798 74,175 17,806 63,867 16,935 58,646

Printing and stationery 21,884 100,803 25,448 99,574 33,043 107,024 21,874 83,681

Subscriptions and donations 17,097 49,180 11,765 75,021 7,614 47,663 7,812 40,435

Audit fee 4,110 18,255 5,698 15,300 3,250 13,000 4,250 12,000

Bank Charges 6,948 29,001 6,259 26,958 4,745 21,332 4,186 17,888

Medical 70,627 101,820 12,005 101,042 5,000 18,075 4,129 26,599

Power and water 36,656 139,033 33,231 130,591 31,195 114,235 26,311 99,659

Rent and rates 0 0 0 0 0 0 0 0

Licence and registration 0 0 0 0 0 0 0 0

Office protection services 10,463 57,622 16,002 53,402 6,218 44,266 12,233 40,146

Staff costs 87,414 493,054 108,953 405,072 87,833 288,755 65,991 286,895

Hotel accommodation and entertainment 16,134 70,191 17,246 60,881 12,093 59,194 15,255 52,070

Insurance 10,818 22,258 4,451 67,635 1,121 15,312 1,632 26,600

Training 53,636 57,287 1,767 58,479 979 56,870 1,281 54,067

Newspaper and periodicals 519 2,118 420 1,801 410 1,671 341 1,461

Exchange loss 29,222 29,222 2,165 2,165 29,222 29,222 2,165 2,165

Write off of Property,plant and equipment 2,398 2,398

Specific provision for doubtful debts 39,472 123,572 84,595 169,507 42,387 85,887 58,777 102,277

Provisions for diminuition in investment 140 140 0 0 140 140 0 0

Annual general meeting expenses 7,255 11,506 8,909 7,951 3,166 10,864 4,757 2,917

531,792 1,851,893 446,339 1,799,242 373,781 1,296,606 295,223 1,176,437

5 Staff Gratuity

Employee benefit expenses (638.02) 15,511 3,761 165,848 (965.32) 10,168 3,013 111,669

(638.02) 15,511 3,761 165,848 (965.32) 10,168 3,013 111,669

6 Depreciation & Amortisation

Amortisation of Intangible Assets 12,027 43,110 5,295 25,495 11,827 42,643 5,295 25,495

Depreciation charge 54,528 103,844 20,453 140,747 16,696 60,654 18,726 40,486

66,554 146,954 25,747 166,242 28,523 103,298 24,022 65,981

7 Finance Income/ Finance Costs

Interest Received 8,749 17,783 1,478 12,794 8,260 13,120 1,478 10,131

Finance Cost - Interest payment on lease rentals 34,943 70,240 8,260 33,906 10,222 10,222 0 0




Interim

Period Year to Date

Interim

Period Year to Date


N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000

6. TAXATION

8.1 Statement of Comprehensive Income

Income tax 72,394 234,423 74,273 240,569 45,947 153,647 91,308 189,198

Education tax - 15,628 4,952 22,966 - 10,243 6,087 15,499

Irrecoverable WHT - -

72,394 250,051 79,225 263,535 45,947 163,890 97,396 204,697

Tax back duty assessment 24,753 23,531

Deferred taxation (Note 15) (11,067) - 15,598 Relating to origination & reversal of

temporary differences

Charge for the year

Write back for the year - - - -

72,394 250,051 79,225 277,221 45,947 163,890 97,396 243,826


N'000 N'000 N'000 N'000

8.2 Statement o Financial Position

At the beginning of the year 290,759 250,229 222,894 166,563

Charge for the year 250,051 288,288 163,890 228,228

Tax Back Duty Audit Assessment (2,547) - (2,547) -

Payments during the year (24,364) (83,774) (15,547) (13,551)

Withholding tax credit utilised (241,288) (163,984) (189,917) (158,346)

At the end of the year 272,610 290,759 178,772 222,894

.3

The charge for income tax in these consolidated financial statements is based on the

provisions of the Companies Income Tax Act, CAP C21, LFN 2004 as amended to date.

Education tax is based on the provisions of the Education Tax Act, CAP E4, LFN 2004.


Current Period Comparative Period Current Period Comparative Period

9 SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT.31ST MARCH, 2020

Group

Cost Land Buildings

Plant &

Machiner

y

Motor

Vehicles

MOTOR

CYCLES

COMPUTER &

OTHER

EQUIPMENT

Furniture,

Fittings &

Eqiup

WORK IN

PROGRESSTotal

N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000

At 1 April 2019 300,909 528,449 86,371 1,265,295 488,148 381,099 104,237 23,463 3,177,971

Addition 320,371 26,170 2,079 355,617 92,445 53,939 17,509 27,600 895,729

Transfers/Reclassification (39,169) (72,015) - - - - - - (111,184)

Disposals (142,827) (3,236) - (2,194) (1) - - (148,258)

At 31st March, 2020 439,284 482,604 85,215 1,620,912 578,399 435,036 121,746 51,063 3,814,259

Depreciation and impairment

At 1 April 2019 - 127,213 66,800 787,659 447,104 287,482 72,761 - 1,789,019

Depreciation charge for the year - 8,272 10,577 281,210 60,450 46,161 11,558 - 418,228

Disposals (3,235) (2,194) (5,429)

Adjustment -

At 31st March, 2020 - 135,485 74,142 1,068,869 505,361 333,643 84,319 - 2,201,818

- -

Net book value -

At 31st March, 2020 439,284 347,120 11,073 552,044 73,038 101,393 37,427 51,063 1,612,444

At 31 March 2019 300,909 401,236 19,571 477,636 41,044 93,617 31,476 23,463 1,388,952

SCHEDULE OF PROPERTY PLANT AND EQUIPMENT.

31ST MARCH, 2020

Company

Cost Land Buildings

Plant &

Machiner

y

Motor

VehiclesMotor Cycles

Computer &

Other Equipment

Furniture,

Fittings &

Eqiupment

Capital Work

In ProgressTotal

N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000

At 1 April 2019 223,513 343,029 77,997 322,306 105,863 364,009 64,665 15,406 1,516,788

Addition 5,000 26,170 2,079 82,168 15,821 48,367 15,008 637 195,251

Transfers/Adj (39,169) - - - - - - - (39,169)

Disposal - - (3,236) - (2,194) (1) - - (5,431)

At 31st March, 2020 189,344 369,199 76,841 404,474 119,490 412,374 79,673 16,043 1,667,440


At 1 April 2019 - 99,326 58,973 255,583 89,577 279,286 42,187 - 824,932

Depreciation charge for the year - 10,376 10,194 69,658 13,822 41,514 8,821 - 154,384

Disposals - (3,235) - (2,194) - - - (5,429)

Adjustment

At 31st March, 2020 - 109,702 65,932 325,241 101,205 320,800 51,008 - 973,887

Net book value

At 31st March, 2020 189,344 259,498 10,909 79,234 18,285 91,575 28,665 16,043 693,553

At 31 March 2019 223,513 243,703 19,024 66,723 16,286 84,723 22,478 15,406 691,856

10 INTANGIBLE ASSETS31ST DECEMBER, 2019

THE GROUP THE COMPANY

N'000 N'000

At 1 April 2019 134,140 133,640

Addition 56,892 54,492

Disposals

Adjustment

At 31st December, 2019 191,032 188,132


At 1 April 2019 86,632 86,132

Depreciation charge for the year 43,110 42,643

Disposals

Adjustment

At 31st December, 2019 129,742 128,775

Net book value

At 31st December, 2019 61,290 59,357

At 31 March 2019 47,508 47,508

The Intangible assets represent investments on Computer Software and Software Licenses. This is to be amortised to profit or loss over a period of three years

when the application is installed and put into use.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


2020 2019 2020 2019

MAR MAR MAR MAR

N'000 N'000 N'000 N'000

11 RIGHT OF USE ASSET

Present Value of Leased Asset 52,960 39,460

Adjustment upon application of IFRS 16 (11,251) (11,251)

41,709 28,209

Charge for the year (9,763) (2,096)

As at 31st March 2020 31,946 26,113

11. FINANCIAL ASSETS AVAILABLE FOR SALE

11.1 Quoted Equities

Nemeith International Pharmaceuticals Plc

822,743 ordinary shares of 50 Kobo each 2,057 2,057 2,057 2,057

2,057 2,057 2,057 2,057

Fair Value loss (1,662) (1,522) (1,662) (1,522)

395 535 395 535

11.2 Unquoted investments at cost:

Investment in subsidiaries: % Holding

Investment in Red Star Freight Limited 100 100,000 100,000

Investment in Red Star Supports Services Limited 100 49,065 49,065

Investment in Red Star Logistics Limited 100 225,000 225,000

374,065 374,065

12 STOCKS

Stationeries and packaging materials 31,791 30,914 25,162 26,883

Fuel and oil 10,833 10,362 10,833 10,362

Spare parts 9,028 9,625 8,870 9,593

Provision for obsolete stock - - - -

51,652 50,901 44,865 46,838

13 TRADE DEBTORS

Trade debtors 2,021,075 2,562,768 946,749 1,520,780

Provision for doubtful debts (159,227) (203,557) (103,510) (122,979)

1,861,848 2,359,211 843,239 1,397,801


RED STAR EXPRESS PLCNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


2020 2019 2020 2019

MAR MAR MAR MAR

N'000 N'000 N'000 N'000

14 OTHER RECEIVABLES

WHT receivable from customers 515,937 444,195 121,829 146,064

WHT receipts received 299,988 271,581 132,597 116,746

Bank interest receivable 989 989 989 989

Staff car advance 70,540 76,476 55,371 62,843

Staff business cash advance 9,670 56,365 391 13,887

Other staff & operational advances 158,810 145,413 88,867 79,911

-

1,055,933 995,019 400,044 420,440

15 PREPAYMENTS

Long term Prepayments 138,644 90,149 38,644 17,861

Current Prepayments 142,727 93,422 119,593 84,363

281,371 183,571 158,237 102,224

16. Cash, Bank balances and other equivalents

Cash balances 938 881 678 801

Cash-in-transit 43,133 41,847 41,008 40,401

Bank Balances 284,017 308,788 188,818 223,703

Short Term Deposits 195,722 172,397 120,233 132,397

523,811 523,913 350,738 397,302

Right Issue Proceeds (Note 16.1) 1,318,037 1,318,037

Impairment on Short term deposits (11,432) (1,579) (11,153) (1,505)

1,830,415 522,334 1,657,621 395,797

16.1 Right Issue Proceeds

Gross Proceeds from Issue 1,347,421 1,347,421

Interest Income 8,100 8,100

1,355,521 1,355,521

Issuing charges (37,484) (37,484)

1,318,037 1,318,037

17. OTHER CREDITORS AND ACCRUALS

Accruals 383,339 359,553 278,200 268,857

Agents & Clearing charges 343,868 475,939 340,986 475,924

Withholding Taxes 76,322 98,313 61,182 83,579

Value added tax 255,369 293,682 128,815 189,090

Staff pension accruals (Note 17.1) 11,704 36,595 3,402 4,772

Unclaimed Dividend 130,795 97,063 130,795 97,063

Other creditors 60,184 81,353 22,928 50,494

1,261,581 1,442,498 966,309 1,169,779

17.1 Staff pension accruals


Provision for the year 181,067 100,533 75,362 82,636

Payments and remittances (205,958) (82,545) (76,732) (82,591)


18. DEFERRED TAXATION


Charge for the year (11,067) 15,598

Tax income/expense recognized in OCI - 16,456 - 16,456

Transition effect of adopting IFRS 9 (14,427) (11,367)



RED STAR EXPRESS PLCNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


Mar-20 Dec-18 Mar-20 Dec-18

N'000 N'000 N'000 N'000

19 SHARE CAPITAL

Authorised

1,000,000,000 ordinary shares

of 50 kobo each 500,000 500,000 500,000 500,000

Issued and fully paid

926,352,051 ordinary shares

of 50 kobo each 463,176 294,748 463,176 294,748

20 GENERAL RESERVE

At the beginning of the year 2,171,742 1,936,404 1,473,459 1,282,609

Profit for the period 531,358 466,247 348,267 414,774

Effect of adoption of new accounting standard (11,251) (11,251)

Other comprehensive Income - - -

Transfer to RSE Foundation - - - -

Acturial Loss on defined benefit plan - - -

Prior year adjustment (uncaptured) - -

Dividend declared (253,483) (235,796) (253,483) (235,796)

At the end of the year 2,438,365 2,166,855 1,556,991 1,461,587




AS AT 31ST MARCH, 2020


N'000 N'000 N'000 N'000

21. RECONCILIATION OF NET PROFIT AFTER TAXATION

TO CASH PROVIDED BY OPERATING ACTIVITIES

Net profit before taxation 781,409 743,469 512,157 658,599

Adjustment to reconcile net income to

net cash provided by operating:

Depreciation and amortisation 461,338 359,702 197,027 160,443

Long term prepayment utilized 344,734 104,506 158,422 113,632

Interest income (17,783) (12,794) (13,120) (10,131)

Interest paid (Interest expense) 70,240 33,906 5,801 -

Issue of shares (Right issue) - - - -

(Profit)/loss on disposal of fixed assets (157,406) (1,928) (233) (887)

Write off of property, plant and equipment - 2,398 - 2,398

Loss on disposal of investment - - - -

Exchange difference 29,222 2,165 29,222 2,165

Expected Credit losses on financial assets 65,975 26,284 68,714 21,509

Other Income (197,727) (119,397) (19,417) (46,527)

(431,596) (496,015)

Changes in assets and liabilities:

(Increase)/decrease in inventory (751) 2,055 1,973 2,378

(Increase)/decrease in trade and other receivables 497,363 (508,690) 574,958 (650,252)

(Increase)/Decrease in prepayments (97,800) (15,911) (56,013) 4,653

Increase/(decrease) in trade and other payables (484,707) 342,439 (500,478) 278,114

Increase/(decrease) in employee benefits (1,584) (32,137) 0 (32,137)

Tax Paid (24,364) (83,774) (15,547) (13,551)

Cash flow from long term prepayment (120,208) (120,417) (102,040) (108,979)

Net cash provided by operating activities 716,354 737,787 345,410 376,774






N'000 N'000 N'000 N'000

22. RECONCILIATION OF CASH

AND CASH EQUIVALENTS

Cash balances 938 881 678 801

Cash-in-transit 43,133 41,847 41,008 40,401

Bank Current Account 284,017 308,788 188,818 223,703

Short term deposits 195,722 170,818 120,233 130,892

523,811 522,334 350,738 395,797

Right Issue Proceeds 1,318,037 1,318,037

1,841,848 522,334 1,668,775 395,798

23. EMPLOYMENT AND EMPLOYEES

23.1 Staff

Number Number Number Number

Managerial 6 7 3 4

Senior staff 54 50 37 34

Supervisors 233 223 55 60

Junior staff 1,532 1,690 180 176

1,825 1,970 275 274

Staff costs:

Salaries, wages and other benefits 1,738,535 1,400,312 820,234 597,958

Staff pension and gratuity 149,356 132,442 33,894 45,201

1,887,891 1,532,755 854,128 643,159

23.2 Employees remunerated at higher rates,

excluding allowances:

N N Number Number Number Number

140,001 - 210,000 1,347 1,505 165 163

210,001 - 360,000 413 407 65 66

360,000 - 900,000 55 49 38 38

900,001 - 1,700,000 7 6 4 4

1,700,001 - 2,011,000 3 3 3 3

1,825 1,970 275 274

Average number of persons employed in the financial year

under review and the staff costs were as follows:





24. Compensation of key management personnel of Red Star Express


N'000 N'000 N'000 N'000

.1 Fees and sitting Allowances 3,647 3,089 3,647 3,089

Executive compensation 3,386 3,078 3,386 3,078

Other Directors and benefits 7,092 6,754 7,092 6,754

14,124 12,920 14,124 12,920

Fees and emoluments disclosed above include amount paid to:

N'000 N'000

Chairman 1,673 1,616

The highest paid Director earned 11,350 11,655

.2 The number of Directors excluding the

Chairman whose emoluments were within

the following ranges were:

N N Number Number Number Number

Below N1,000,000 - - - -

1,000,000 - 2,000,000 4 5 4 5

2,000,001 - 3,000,000 - - - -

3,000,001 and above 3 3 3 3

25. GUARANTEES AND OTHER FINANCIAL COMMITMENTS

.1 Contingent liabilities

.2 Financial commitments

.3 Performance Bond

As at 31st March 2020, there were no contingent liabilities . The Directors are of the opinion that, based on the

Solicitors' advice, no material loss will arise from them. Consequently, no provision has been made in these

consolidated financial statements for the amount.

The Directors are of the opinion that all known liabilities and commitments which are relevant in assessing the

Company's state of affairs have been taken into account in the preparation of these consolidated financial

statements under review.

The Company accepted a performance bond of N50 million (2018- N50 million) in favour of Nigeria Customs

Service.





26. SUPPLIERS

Kungo-Rock Investments Limited

Chita Express Limited

Aegis Core LimitedKnight Pride Int'l Limited

Air France

British Airways

27. POST BALANCE SHEET EVENTS

28. RELATED PARTY TRANSACTIONS

a. Parent and ultimate controlling party

The consolidated financial ststements include the financial statements of Red Star

Express Plc and the subsidiaries listed below

%

Red Star Freight Limited 100

Red Star Logistics Limited 100

Red Star Supports Services Limited 100

b.


N'000 N'000 N'000 N'000

Due from related company

Red Star Freight Limited 352,026 241,690

Red Star Logistics Limited 599,252 660,246

942,291 901,936

Due to related companies

Red Star Supports Services Limited 55,045 127,233

55,045 127,233

The Company's significant suppliers are mainly local. Some of the major suppliers are:

The Company is not associated with the suppliers.

The Directors are of the opinion that there were no significant post balance sheet events which would have had any

material effect on the balance sheet and the profit for the period ended on that date, which have not been adequately

provided for or disclosed in the consolidated financial statements.

The companies receive payments from customers on behalf of each other and these are transferred accordingly. The

balances due from/to the related companies which are disclosed in the balance sheet are as follows:





29 EARNINGS PER SHARE

Basic Earnings Per Share

Interim Period Year to Date Interim Period Year to Date Interim Period Year to Date Interim Period Year to Date


N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000

Profit for the year attributable to shareholders 153,838 531,358 168,351 466,247 97,638 348,267 206,965 414,774

Number Number Number Number Number Number Number Number

Weighted Average number of ordinary shares outstanding 926,352 589,497 926,352 589,497

Earnings per share (Kobo) 57 79 38 70

30 COMPARATIVE FIGURES

Certain prior year's figures have been reclassified in line with current year's presentation for more meaningful comparison.

31 Segment Information

The Group

Segment

Statement of

Year to Date Year to Date Year to Date Year to Date Year to Date Year to Date Year to Date Year to Date Year to Date Year to Date

Apr'19 - Mar'20 Apr'18 - Mar'19 Apr'19 - Mar'20 Apr'18 - Mar'19 Apr'19 - Mar'20 Apr'18 - Mar'19 Apr'19 - Mar'20 Apr'18 - Mar'19 Apr'19 - Mar'20 Apr'18 - Mar'19

Segment

Statement of

Comprehensive

Income N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000

Revenue (External Customers) 6,289,699 5,849,869 1,563,624 1,752,746 1,274,521 872,121 1,496,444 1,656,389 10,623,421 10,066,576

Finance Income 13,120 10,131 4,663 2,663 - - - - 17,783 12,794

Cost of Sales (4,465,847) (3,981,358) (1,266,912) (1,475,227) (1,094,427) (746,199) (1,248,441) (1,248,793) (7,972,923) (7,290,061)

Other Income 95,478 134,044 163,638 17,387 399 5,648 14,273 5,056 197,727 119,397

Depreciation & Amortisation (103,298) (65,981) (5,595) (5,466) (1,725) (443) (880) (963) (146,954) (166,241)

Other Operating Expenses (1,306,774) (1,288,105) (189,187) (206,419) (129,027) (93,927) (191,197) (327,366) (1,867,404) (1,965,091)

Finance Charges (10,222) - (36,067) (17,140) (8,792) (16,767) (70,240) (33,906)

Profit before income tax 512,157 658,601 234,165 68,544 49,742 37,200 61,406 67,556 781,409 743,468

Income tax expence (163,890) (243,827) (70,249) (14,533) (14,923) (7,037) (18,422) (17,279) (250,051) (277,221)

Profit after tax 348,267 414,774 163,915 54,010 34,820 30,163 42,984 50,277 531,358 466,246

Mar-20 Mar-19 Mar-20 Mar-19 Mar-20 Mar-19 Mar-20 Mar-19 Mar-20 Mar-19Segment

Statement of

Financial Position N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000

Non Current Assets 1,193,626 1,131,825 731,687 528,845 31,750 3,479 163,220 164,770 1,844,719 1,527,144

Current assets 4,007,653 3,247,175 1,048,997 1,018,972 677,655 498,756 345,963 356,140 4,942,575 4,020,887

Total Assets 5,201,278 4,379,000 1,780,684 1,547,817 709,405 502,235 509,183 520,910 6,787,294 5,548,031

Ordinary Share Capital 463,176 294,748 225,000 225,000 100,000 100,000 49,065 49,065 463,176 294,748

Share Premium 1,438,301 296,433 - - - - - - 1,438,301 296,433

Retained Earnings 1,556,991 1,473,459 416,108 295,677 123,111 101,677 303,421 293,560 2,438,365 2,171,742

Non Current Liabilities 94,745 94,745 206,361 116,025 52,887 259 19,652 37,003 312,917 252,535

Current liabilities 1,648,065 2,219,615 933,216 911,115 433,406 300,299 137,045 141,282 2,134,535 2,532,573

Total Equity & Liabilities 5,201,280 4,379,000 1,780,684 1,547,817 709,405 502,235 509,183 520,910 6,787,294 5,548,031

32 Securities Trading Policy

Current Period

The calculation of basic earnings per share at 31st March 2020 for the company was based on the profit attributable to ordinary shareholders of N348 million and a weighted average number of ordinary

shares outstanding of 926.4 million for the company. While the group EPS calculation was based on the profit attributable to the group shareholders of N531 million and a weighted average number of

ordinary shares outstanding of 926.4 million shares.


Current Period Comparative PeriodComparative Period

In accordance with the Post-Listing Rules of the Nigerian Stock Exchange, Red Star Express Plc., has in place a Share Dealing Policy which regulates securities transactions by Directors,

Employees and other Insiders.

The Directors, Employees and other Insiders complied with this Rule.

Courier Logistics Freight GroupSupport Services

2020/012 UNAUDITED FINANCIAL REPORT FOR THE YEAR … · RED STAR EXPRESS PLC FOR THE YEAR ENDED...

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