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NCR OPTIMISTIC OF IMPROVED PROFITABILITY

By NBF News
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BY MICHAEL EBOH
NCR Nigeria PlcĀ  has expressed optimism of a significant improvement in its financial performance in the years ahead following the Central Bank of Nigeria's recent reversal of the directive on offsite Automated Teller Machines, ATM.

Speaking at the 60th annual general meeting of the company in Lagos, Chairman of the company, Otunba Adekunle Ojora said the directive stopping banks from setting up offsite ATM impacted negatively on its revenue base and profitability as it concentrated on the service and maintenance of existing ATMs with a minimal number of sales of new ATM to banks.

Specifically, he said the company has recorded significant improvement in the sale of ATMs in the current financial year and is optimistic that the sale will impact positively on its financials by the end of the 2012 financial year.

The company, despite a 40 per cent growth in its turnover, recorded significant decline in its operating profit, profit before tax and profit after tax for its 2011 financial year.

It recorded a turnover of N2.855 billion, rising from N2.042 billion recorded in its 2010 financial year.

Ojora attributed the increase in its turnover to the cashless economy policy of the CBN, as well as the reversal of the offsite ATM directive.

Its operating profit, however, dipped by 67 per cent to N369.275 million, from N1.104 billion in 2010; profit before tax stood at N369.681 million, dropping by 65 per cent from N1.061 billion recorded in 2010, while profit after tax dipped by 73 per cent from N721.586 million recorded in 2010 to N196.646 million in the year under review.

Despite the decline in its profit, the company declared a dividend of N345 million, representing a dividend per share of N3 for its shareholders.