R.T. Briscoe says in talk with banks to restructure credit facilities

The management of R.T. Briscoe (Nigeria) Plc this week notified the Nigerian Stock Exchange (NSE) and the investing public of its discussion with seven banks to which the company is indebted, for a restructuring of the automobile and generator company’s credit facilities.

“One of the banks recently advertised in daily newspapers, notice of petition for winding up that it brought against the company in June 2016. We wish to assure our stakeholders and the general public that we are hopeful of restructuring our credit facilities with our bankers and settling our debts in the course of time,” said Seyi Onajide, managing director/CEO, R.T. Briscoe (Nigeria) Plc in letter to the NSE. 

Recall that July last year, Justice Ibrahim Buba of a Federal High Court in Lagos barred R.T. Briscoe Nigeria Plc from accessing its funds in various commercial banks in the country over an alleged N2.5billion debt owed Diamond Bank Plc. 

Listed on the Automobile/Auto Part Retailers subsector of the NSE Main Board, R.T. Briscoe (Nigeria) Plc has a Market Capitalisation of N588.178million and Shares Outstanding of 1.176billion units. Its share price has stood at 50kobo for some time.

Early this month, the board and management of R.T. Briscoe (Nigeria) Plc notified the Exchange of a likely delay in the filing of the audited financial statements of the company for the year ended December 31, 2016. The management noted that the company’s external auditors, KPMG Professional Services who are auditing the financial statements have confirmed that there might be an “Emphasis of Matter” in the Audit Opinion which would require that the financial statements be initially referred to the Financial Reporting Council of Nigeria for review before it is filed with the Nigerian Stock Exchange and announced to the public.      

The company’s unaudited condensed financial statements for the period ended September 30, 2016 showed revenue declined to N8.289billion from N9.572billion in the corresponding period of 2015.

R.T. Briscoe (Nigeria) Plc third-quarter (Q3) gross profit declined to N1.125billion from N1.755billion in Q3’ 2015. The Company’s Loss Before Income Tax (LBT) widened in the third-quarter (Q3) of 2016 to N1.733billion from N1.570billion LBT in Q3’2015.

Iheanyi Nwachukwu