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ABC Transport posts N7.75bn revenue for 2020

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ABC Transport Plc has witnessed a drop in its earnings for full-year ended December 31, 2020.

This is according to the audited group accounts forwarded by the firm to the Nigerian Stock Exchange.

The transport firm recorded a 16 per cent revenue increase of N7.75bn for 2020 compared to N6.68bn recorded in 2019.

ABC Transport recorded an operating loss of N70.46m for 2020, compared to an operating profit of N622m in 2019.

It recorded a loss before tax of N323.54m in 2020, as against a profit before tax of N412.89m recorded in 2019.

Similarly, the transport firm recorded a loss after tax of N478.88m in 2020, compared to a profit of N198.8m in 2019 from continuing operations.

In its financial statement, ABC Transport said the group was at risk of losing its earnings based on the unpredictable exchange rates. (adsbygoogle = window.adsbygoogle || []).push({});

The statement read, “The group is exposed to foreign exchange risk in the repatriation of funds generated in foreign currency on its west coast operations, in the transfer of funds to overseas for vehicle spares, and on balances on its domiciliary accounts.

“Funds generated from foreign operations are usually lodged in interest-bearing accounts with banks of the country where they were generated and transferred to naira denominated correspondent banks targeting periods of favourable exchange rates between the naira and the foreign currency.

“Procurements are equally planned to ensure transfers to overseas suppliers are made in periods of favourable exchange rates.”

Similarly, the luxury bus operator said work was in progress to make its cargo division a full courier and e-commerce logistics enterprise, offering inter and intra city services.

It said, “This segment has been identified as a fertile ground for growth commanding good margins. The imperative to pursue this strategy is further reinforced by the new normal occasioned by the COVID-19 pandemic which has seen a boost in courier and e-commerce business.”

The firm also said plans were ongoing to raise N1.4bn from the capital market to finance a five-year growth plan.

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