Credit Direct Limited: Impressive profit amidst pressure
Credit Direct Limited, a leading innovation company has released its statement of financial position as at December 31st 2021.
For the 2021 financial year, Credit Direct recorded more sales than it did in the corresponding year.
The sales can also recognised as a better sales which can be translated in to better profits.
Specifically, , Profit After Tax (PAT) for the year was far better than corresponding year, and the interplay between a higher revenue and a lower profit had a up sizing effect on the company’s profitability ratios.
It is however worth noting that the company’s profitability ratios are still on upward performance with the company standard.
Profit shows sustainable performance.For its 2021 financial year, the company recorded a 3.6 per cent increase rate in its net revenue (this simply means that the sale figure rose better than it did in the corresponding year.
Such net revenue rose significantly to N10. 4 billion, up from N10.1 billion in the preceding year. It is worth of note that this 3.6 per cent increase rate, even though is a bit low is still good when compared with the company average for the same period under review.
Profit After Tax (PAT) increase rate followed right pattern seen on upward performance. Credit Direct Limited recorded an increase rate in Profit After Tax (PAT) obligation for the previous year which stood at the sum of N2.007 billion against N1.527 billion achieved in 2029, this revealed a marginal difference of 31.5 per cent.
As Profit Before Tax (PBT) obligation for 2021 stood at N3.19 billion, up from a profit of N2.4 billion in the prior year, this can be translated into a 32.9 per cent appreciation.
Credit Direct Limited, reported total assets for the 2021 financial Year which grew impressively to N29.4 billion, 12.9 per cent more than N26.051 billion assets deployed in 2020.As loans and advances of the company increased to N23.39 billion in 2021 financial year, but the company recorded a bit decline rate in property, plant and equipment in 2021.The company recorded N2.486 billion in 2021 from N2.553 billion in 2029, this figure revealed a decline rate of 2.6 per cent.
The break down under net revenue showed that the impairment credit e financial assets declined to a N21.9 per cent to N1.320 billion in the previous year from N1.691 billion achieved in the corresponding year 2020.
However, the total liabilities of the company stood at the sum of N21.291 billion in 2021, up from a profit of N18.367 billion in the corresponding year and translation into a 15.9 per cent appreciation rate.
As the rate of borrowings of the company rose by 15.7 per cent to a N17.264 billion in previous year 2021 from N14.893 billion borrowed on preceding year 2020.
The company dividend payable increase to N1.560 billion in 2021 to N1.300 billion in 2020, an improvement of a 0.2 per cent.
PROFITABILITY RATIO
From the analysis, Credit direct Limited recorded profitability in all measures most especially for the 2021 financial year, However when doing comparison to its preceding year result, almost all the parameters showed increase rate.
First to achieve a growth rate was the profit margin of the company which appreciated to 31 per cent in 2021 from 24 per cent in 2020, what this figure means for every N100 earned by the company in the course of the year, N31.0 of it can be translated in to profit higher than N24.0 in the corresponding year.
Also, Return on Assets (ROA) inched weight to 11 per cent from 9 per cent in 2020. Analysis shows that every N100 worth of assets employed by the company in the course of 2021 could only contribute N11.0 to the Profit After Tax higher than N9.0 in 2021.
For the 2021 financial year Credit Direct Limited equity value stood at N8.131 billion and for every N100 equity deployed the company made an Profit After Tax of N24.70, better than and as compared to an Profit after tax of N19.9 in the preceding year.
