Interlinked technologies records N15.02 million losses in 2012 - Interlinked Technologies Plc has reported N15.021 million losses for the year ended 30th June, 2012, despite 38 per cent decline in cost of sales.
The company's unaudited 2012 financial statement filed with the Nigerian Stock Exchange, NSE, showed that the loss recorded was 569.6 percent decline from profit position of N3.19 million in 2011.
The profit before tax also slumped to negative position of N13.41 million from a positive region of N2.56 million in equivalent period of 2011, indicating 623.2 percent decrease.
Similarly, the gross earnings for the period slipped by 32.5 percent to N192.503 million the previous N285.17 million in the comparable period of 2011.
However, cost of sales improved slightly to close the year at N121.43 million from N195.91 million, representing 38 percent improvement; administrative expenses also improved marginally by 3.8 percent to N82.52 million from N85.80 million posted in the same period of 2011.
The Managing Director, Mr. Olusegun Layode, had hinted that the company was in a bad shape in the last meeting with shareholders where he said the company could not increase its selling price due to competitive pressures, even as he added that funding was unavailable to run the company's operation due to our low rights subscription in the previous year.
He explained that many of the company's significant customers stepped down on many projects Interlinked Technologies were awarded due to lack of funds. "Our Rights issue was concluded very late due to several factors beyond our control at that time. Consequently we were unable to utilize the funds we raised. We achieved 25 percent of the funds we set out to raise which is not enough for us to embark on our aggressive growth plans," he lamented.
The Chairman, Mr. Fabian Nnadozie, had said that the company would continue in its efforts to improve the Business of the coming years.
"So far, we have increased our product base by the introduction of new complimentary products in the Electrical, and Oil industries. Our main objective for this year is to strengthen our product portfolio, increase our customer base, develop our existing markets, open new markets and establish new branch offices in Abuja and Port-Harcourt, while further strengthening our presence in Warri.
We have developed a distributorship network for many of our products while paying particular attention to Consumer products that will give us continuous cash flow and steady profitability. We have broadened cooperation with Companies around the world in areas that will enhance our new objective and deepen our Business base. We have, in fact," Nnadozie had said.
Other highlights of the result showed that the value of the company's fixed assets dropped by 14 percent to 16.06 million, as against N18.68 million in 2011, while the working capital was down by three percent to N419.39 million from the previous N432.59 million.
By Nkiruka Nnorom