Caverton Offshore Support group earnings break, widening its yearly loss amidst a decline in contracts from customers.
According to an audited financial statement for the financial year 2022 submitted to the Nigerian Exchange, the company reported a loss of more than N5 billion in 2022.
The group reported a loss following a decline in revenue in the year. Details show that Caverton’s revenue fell to N29.2 billion in 2022 from about N35 billion in the comparable period in 2021. Key earnings breaker was a slump in a helicopter, and airline deal in 2022.
As the group cash cow, earnings from the segment declined to N25.344 billion, from about N34 billion recorded in the comparable year in 2021.
The company’s gross profit tumbled following a large decline in contracts which was far above the rate of reduction experienced in costs of sales.
NewsBeatng reports that revenue dropped by about 16% year on year amidst a tough economic environment and rising competition in the industry.
Despite the large drop, Caverton’s costs of sales was 3.7% below 2021 record. This resulted in a more than 55% annual decline in gross profit level. Unfortunately, the company was unable to manage its overhead spending.
Administrative expensive increase while it booked higher impairment loss on financial assets. In 2022, other income rose but the effect was doused by negative earnings from investment in associates.
Instead of the tax credit enjoyed last year, it recorded tax payments that dragged the bottom line downward. Overall, Caverton ended the year with an annual loss of N5.163 billion, extending from N4.343 billion reported a loss in 2021.
According to the register of members, apart from the three substantial shareholders (Tasmania Investments Limited, Aderemi Makanjuola and Molar Vessels Limited) no other person or persons held more than 5% of the issued and fully paid-up shares of the company at 31 December 2022.
Tasmania Investments Limited which is represented by Aderemi Makanjuola owns 73.42% of the group shares outstanding.
Makanjuola directly owns 16.63% of the group while Molar Vessels control 9.95% as of December 2022.
