2018
Initiates Commercial Department
THE INITIATES PLC.
7/19/2018
HALF YEAR MANAGEMENT ACCOUNT
FOR PERIOD ENDING IST JANUARY THROUGH 30
TH
JUNE 2018.
DOCUMENT TITLE: 2018 SECOND QUARTER MANAGEMENT ACCOUNT
DOCUMENT NO.: TIP-CFD-MNG -0014
REV NO.: 00
Page 1 of 21
Site/Location:
TIP BASE
Completed By: DOUGLAS ROSEMARY
Position: CHIEF FINANCIAL OFFICER
TABLE OF CONTENT
TITLE PAGE -------------------------------------------------------1
TABLE OF CONTENT--------------------------------------------------2
EXECUTIVE SUMMARY-------------------------------------------------3-5
STATEMENT OF COMPREHENSIVE INCOME----------------------------------6
STATEMENT OF FINANCIAL POSITION------------------------------------7
CHANGE IN EQUITY---------------------------------------------------8
CASHFLOW STATEMENT------------------------------------------------9
NOTE TO THE ACCOUNTS-- -------------------------------------------10-19
STATEMENT OF VALUE ADDED------------------------------------------20
FIVE YEARS FINANCIAL SUMMARY---------------------------------------21
DOCUMENT TITLE: 2018 SECOND QUARTER MANAGEMENT ACCOUNT
DOCUMENT NO.: TIP-CFD-MNG -0014
REV NO.: 00
Page 2 of 21
EXECUTIVE SUMMARY:
1. INTRODUCTION
The TIP 2018 Half-Year Management Accounts was prepared in accordance with IFRS, GAAP
and in compliance with TIP financial plan (budget), strategy and regulations.
This report, therefore; is to provide adequate and first-hand information that will
enhance informed decisions on the genuineness and reliability of the principal books
of accounts and the dependability of the internal control mechanism put in place by
management to ensure that the account is properly prepared and assets safeguarded.
2. HALF YEAR (JAN-JUNE 2018) PERFORMANCE
2.1 REVENUE
TIP Half-year Revenue rose from NGN273.989m in 2017 to an all-time high income of
NGN420.066m in 2018 representing a 53.37% increase in revenue generation over and
above the recorded revenue in the same period in 2017. Of the half-year Revenue of
NGN420.066m, the TDU Business Line alone contributed 76.31% (NGN320.548m). This is as
a result of Drilling Waste Collection and Treatment of 6nos wells for Addax Njaba
Drilling campaign that commenced late last year and was completed within the period
under review. Contributions from other Business Lines include: Cleaning &
Decontamination: NGN81.7m, HWC (Incineration):NGN9.2m, Waste Disposal Services:
NGN5.8m and Others: NGN2.7m).
2.2 GROSS PROFIT
TIP posted a Gross Profit of NGN162.484m for the period under review which is 48.84%
higher than that of the same period in 2017 (NGN109.164m) However, Total Direct Cost
of NGN257.582m (2017:NGN164.825m) which stood at 61.32% of Total Turnover for the
period is slightly higher than TIP approved standard benchmark of 60% of Total
Turnover as Direct Cost by 1.32%. This is likely due to NGN54m Provision (Accrued) for
DOCUMENT TITLE: 2018 SECOND QUARTER MANAGEMENT ACCOUNT
DOCUMENT NO.: TIP-CFD-MNG -0014
REV NO.: 00
Page 3 of 21
Waste Treatment under Other Direct Cost to absorb the cost of emptying the waste pit
that is harbouring yet to be treated waste collected from Addax Njaba Drilling project
as Revenue from this project has already been recognized in the period under
consideration.
2.3 NET PROFIT
The reported half-year Net Profit Before Tax stood at NGN81.912m (2017:NGN32.633m)
which is 19.49% of Turnover for the same period,
2.4 BALANCE SHEET
TIP Balance Sheet value has grown to NGN1.331b as at the close of business (COB) on
the 30 June, 2018.
a. Trade Receivables: This stood at NGN564.769m at the close of business on 30 June,
b. Account Payable
TIP Account Payable of NGN166.505m as at 30 June, 2018 can be conveniently covered
by the Trade Receivable of NGN564.769m at least 3 times over.
3. Q2 2018 PERFORMANCE
TIP’s Q2 2018 Total Revenue of NGN145.342m fell below the recorded revenue of the
corresponding quarter in 2017 of NGN164.881m showing a drop by 13.44%. Gross Profit
also dropped from NGN89.534m in Q2 2017 to NGN55.015m in Q2 2018.
The same effect is recorded when Q2 2018 performance is placed side by side with Q1
2018 results: Revenue:(Q2-NGN145.342m: Q1-NGN277.28m), Gross Profit: (Q2-NGN55.015m:
Q1-NGN94.4m) and Net Profit: (Q2-NGN12.539m: Q1-NGN60.43m)
DOCUMENT TITLE: 2018 SECOND QUARTER MANAGEMENT ACCOUNT
DOCUMENT NO.: TIP-CFD-MNG -0014
REV NO.: 00
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HIGHLIGHT OF THE HALF YEAR REPORT
ACTUAL HISTORICAL ACTUAL HISTORICAL
Q2 2018 Q2 2017 CHANGE YTD 2018 YTD 2017 CHANGE
N'Mn N'Mn % N'Mn N'Mn %
Revenue 145.34 164.88 (13.44) 420.07 273.97 34.78
Direct cost 90.33 89.53 0.88 257.58 164.83 36.01
Gross Profit 55.02 75.35 (36.96) 162.48 109.14 32.83
Total Indirect Expenses 38.07 40.99 (7.68) 73.18 72.27 1.24
Financial Cost 4.41 3.71 15.82 7.39 4.24 42.66
Profit Before Tax 16.95 34.35 (102.71) 89.30 36.87 58.71
Provision for Income Tax Expense 3.13 7.66 (144.38) 20.48 8.16 60.16
Profit for the period 9.40 22.98 (144.38) 61.43 24.48 60.16
ASSETS
Non-Current Assets
Property, plant and Equipment
Total Non-Current Assets
Current Assets
Inventories
Trade receivables
Cash and cash equivalents
Current tax assets
Other current tax assets
Total current Asset
Total Assets
Non-Current Liabilities
Deferred tax
Current Liabilities
Trade and Other payables
Current tax liabilities
Other current tax liabilities
Employees' benefits
Short term borrowings
Total current liabilities
Total Liabilities
Working Capital
Net Asset
44.71
100.00
68.50
61.69
31.11
(58.95)
67.71
61.61
53.18
518.82
548.10
146.21
783.13
163.45
209.99
163.19
707.07
665.03
4.25
29.40
1.57
-
11.06
62.79
2.85
45.00
2.35
1,331.23
29.28
397.13
128.23
46.53
566.36
2.33
6.02
87.97
25.53
7.89
65.51
590.42
-
ACTUAL
YTD 2018
N'Mn
666.19
666.19
225.71
27.53
YTD 2017
N'Mn
590.42
11.37
100.00
11.37
60.15
(1,081.52)
(31.04)
50.88
9.71
STATEMENT OF COMPREHENSIVE INCOME
THREE MONTHS ENDED 30TH JUNE
SIX MONTHS ENDED JUNE 30TH
CHANGE
HISTORICAL
STATEMENT OF FINANCIAL POSITION
SIX MONTHS ENDED JUNE 30TH
(11.61)
%
326.64
917.06
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RATIOS
ACTUAL HISTORICAL ACTUAL HISTORICAL
Q2 2018 Q2 2017 CHANGE YTD 2018 YTD 2017 CHANGE
% %
Earnings Per Share 0.01 kobo 0.03 kobo (59.08) 0.07 kobo 0.03 kobo 151.01
Gross Profit Margin 0.38% 0.46% (17.17) 0.39% 0.40% (2.90)
Net Profit Margin 6.47% 13.94% (53.58) 14.62% 8.93% 63.71
Net Asset Per Shares 0.88 kobo 0.79 kobo 10.76 0.88 kobo 0.78 kobo 12.85
Return on Capital Employed 1.16% 3.05% (62.04) 7.56% 3.25% 132.84
Current Ratios 1.28x 2.00x (35.86) 1.32x 1.81x (26.91)
Net Working Capital: 1.01x 0.99x 1.64 0.35x 0.60x (41.56)
Fixed Asset Turnover: 0.22x 0.28x (21.88) 0.63x 0.46x 35.89
Receivables Turnover 1.19x 2.00x (40.35) 1.19x 2.00x (40.35)
Payables Turnover 1.18x 2.00x (40.97) 1.17x 2.00x (41.27)
Return On Equity 0.01% 0.03% (63.05) 0.08% 0.03% 126.63
Return On Assets 0.11% 0.18% (39.28) 0.32% 0.30% 5.62
Price Earning per Share 47.32 kobo 19.36 kobo 144.38 7.24 kobo 18.18 kobo (60.16)
GRAPHICAL REPRESENTATION OF TIP'S PERFORMANCE FOR THE SECOND QUARTER 2018
GRAPHICAL REPRESENTATION OF TIP'S PERFORMANCE FOR THE HALF YEAR ENDED 30TH JUNE 2018.
THREE MONTHS ENDED JUNE 30TH
SIX MONTHS ENDED JUNE 30TH
-
200.00
400.00
600.00
800.00
1,000.00
1,200.00
1,400.00
ACTUAL Q2 2018 N'Mn
HISTORY Q2 2017 N'Mn
(200.00)
-
200.00
400.00
600.00
800.00
1,000.00
1,200.00
1,400.00
ACTUAL YTD 2018 N'Mn
HISTORY YTD 2017 N'Mn
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STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED)
FOR THE PERIOD ENDED 30TH JUNE 2018
ACTUAL HISTORICAL ACTUAL HISTORICAL
Q2 2018 Q2 2017 CHANGE YTD 2018 YTD 2017 CHANGE
Continuing Operations Note N N % N N %
Revenue 5 145,342,262 164,881,934 (13.44) 420,066,999
273,968,048 34.78
Cost of sales 6 90,326,751 89,534,623 0.88 257,582,567
164,825,232 36.01
Gross profit 55,015,511 75,347,311 (36.96) 162,484,432
109,142,816 32.83
Staff costs 8 18,023,200 15,062,438 16.43 34,938,993
28,686,759 17.89
Depreciation and impairment loss 9 1,530,320 1,374,169 10.20 3,038,488
2,734,369 10.01
Administrative expenses 10 18,514,538 24,555,972 (32.63) 35,202,414
40,849,943 (16.04)
38,068,057 40,992,579 (7.68) 73,179,895 72,271,071 1.24
Results from operating activities
16,947,454 34,354,732 (102.71) 89,304,538 36,871,745 58.71
Finance cost 11 4,408,206 3,711,028 15.82 7,391,917
4,238,405 42.66
Profit before taxation
12,539,247 30,643,704 (144.38) 81,912,621 32,633,340 60.16
Provision for Income tax expense 3,134,812 7,660,926 (144.38) 20,478,155 8,158,335 60.16
Profit after taxation
9,404,435 22,982,778
(144.38)
61,434,466 24,475,005
60.16
Other Comprehensive income
Foreign currency translation difference 12 11,011 5,029,002 (45,573.56) 5,889,923
16,175,824 (174.64)
Other comprehensive income for the period 11,011 5,029,002 (45,573.56) 5,889,923 16,175,824 (174.64)
Total comprehensive income for the period 9,415,446 28,011,779 (197.51) 67,324,389 40,650,829 39.62
-
Basic earnings per share (kobo)
0.01 0.03 0.07 0.03
Diluted earnings per share (kobo)
0.01 0.03 0.07 0.03
The notes on pages 10 to 19 form part of these financial statements.
THREE MONTHS ENDED JUNE 30TH
SIX MONTHS ENDED JUNE 30TH
DOCUMENT TITLE: 2018 SECOND QUARTER MANAGEMENT ACCOUNT
DOCUMENT NO.: TIP-CFD-MNG -0014
REV NO.: 00
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STATEMENT OF FINANCIAL POSITION
AS AT 30TH JUNE 2018
ACTUAL HISTORICAL 2017
30TH JUNE 2018 30TH JUNE 2017 CHANGE 31ST DEC.
Note N N % N
Assets
Non-current assets
Property, plant and equipment 13 666,193,070 590,419,883 11.37
678,098,211
Current assets
Inventories 14 2,353,582 - (100.00)
2,889,328
Trade and other receivables 15 566,362,323 225,711,350 60.15
383,107,035
Cash and cash equivalents 16 2,330,067 27,530,194 (1,081.52)
1,341,037
Current tax assets 17 6,019,626 7,887,917 (31.04)
75,477,891
Other current assets 18 87,968,412 65,507,459 25.53
2,861,171
Total current assets
665,034,009 326,636,920
50.88
465,676,462
Total Assets
1,331,227,079 917,056,803
31.11
1,143,774,673
#DIV/0!
Equity and Liabilities
Equity
Share capital 19 444,990,776 444,990,776 -
444,990,776
Share premium 20 17,780,000 17,780,000 -
17,780,000
Revaluation reserve 21 83,410,528 83,410,528 -
83,410,528
Retained earnings 23 236,945,921 160,890,297 32.10
169,621,532
#DIV/0!
Total equity
783,127,225 707,071,601
9.71
715,802,836
#DIV/0!
Non-current liabilities
Deferred tax liabilities 22 29,276,182 46,533,814 (58.95)
29,276,182
#DIV/0!
Current liabilities
#DIV/0!
Trade and other payables 24 397,125,436 128,229,647 67.71
275,677,609
Current tax liabilities 25 11,059,740 4,246,379 61.61
12,992,056
Other Current tax liabilities 26 62,793,082 29,402,100 53.18
47,356,345
Employees' benefits 29 2,845,414 1,573,263 44.71
2,669,645
Short term borrowings 28 45,000,000 - (100.00)
60,000,000
Total current liabilities
518,823,672 163,451,389
68.50
398,695,655
Total liabilities
548,099,854 209,985,203
61.69
427,971,837
#DIV/0!
Total equity and liabilities
1,331,227,079 917,056,803
31.11
1,143,774,673
These financial statements were approved by the Board of Directors on 25th July, 2018 and signed on
its behalf by:
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Mr. Joe Ogbonna Anosikeh Ossai Reuben Rosemary Douglas
Chairman Managing Director Chief Financial Officer
FRC No:FRC/2014/NIS/00000008836 FRC No:FRC/2014/NIAECHI/00000009687 FRC No:FRC/2017/ICAN/00000016060
The notes on pages 10 to 19 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
PERIOD ENDED 30TH JUNE 2018
Share Share
Revaluation
Retained Total
capital premium reserve earnings Equity
N N N N N
At 1 January
444,990,776 17,780,000 83,410,528 169,621,532 715,802,836
Profit for the year
- - - 61,434,466
61,434,466
444,990,776
17,780,000 83,410,528
231,055,998
777,237,302
Other comprehensive income:
Foreign currency translation difference
- - - 5,889,923 5,889,923
At 30th June 2018
444,990,776 17,780,000 83,410,528 236,945,921 783,127,225
STATEMENT OF CHANGES IN EQUITY
PERIOD ENDED 30TH JUNE 2017
Share Share
Revaluation
Retained Total
capital premium reserve earnings Equity
N N N N N
At 1 January
444,990,776 17,780,000 83,410,528
152,938,913
699,120,217
Performance Bonus (6,000,000)
(6,000,000)
Dividend paid (26,699,446)
(26,699,446)
Profit for the period
- - -
24,475,005
24,475,005
444,990,776
17,780,000 83,410,528
144,714,473
690,895,777
Other comprehensive income:
Foreign currency translation difference
- - - 16,175,824 16,175,824
At 30th June 2017
444,990,776 17,780,000 83,410,528 160,890,297 707,071,601
YEAR ENDED 31 DECEMBER 2017
Share Share
Revaluation
Retained Total
capital premium reserve earnings Equity
N N N N N
At 1 January
444,990,776 17,780,000 83,410,528 152,938,913 699,120,217
Prior year adjustments
- - - (16,091,944)
(16,091,944)
Performance Bonus
- - - (6,000,000)
(6,000,000)
Dividend paid
- - - (26,699,446)
(26,699,446)
Profit for the year
- - - 81,978,410
81,978,410
444,990,776
17,780,000 83,410,528
186,125,933
732,307,237
Other comprehensive income:
Foreign currency translation difference
- - - (16,504,401) (16,504,401)
At 31st December 2017
444,990,776 17,780,000 83,410,528 169,621,532 715,802,836
DOCUMENT TITLE: 2018 SECOND QUARTER MANAGEMENT ACCOUNT
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STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30TH JUNE 2018
SIX MONTHS ENDED JUNE 30TH
ACTUAL HISTORICAL ACTUAL HISTORICAL
2018 2017 CHANGE 2018 2017 CHANGE
Note N N % N N %
Cash flows from operating activities
Cash received from customers 140,945,658 124,622,819 11.58 256,094,004
229,329,986 10.45
Cash paid to suppliers and employees (184,956,628) (87,926,215) 52.46 (298,597,825) (166,073,422) 44.38
Net cash provided by operating activities
(44,010,970) 36,696,604
183.38
(42,503,821) 63,256,564
248.83
Cash flows from investing activities
Payments for property, plant and equipment - (16,672,307) (100.00) (1,507,149)
(32,834,780) (2,078.60)
Net cash provided by investing activities
- (16,672,307)
(100.00)
(1,507,149) (32,834,780)
(2,078.60)
Cash flows from financing activities
Short term loan repayment (35,000,000) - 100.00 (60,000,000)
(11,000,000) 81.67
Short term loan receipt 90,000,000 100.00 105,000,000 - 100.00
Dividend paid - (602,514) (100.00) -
- -
Interest paid (10,000,000) - 100.00 -
- -
Net cash provided by financing activities
45,000,000 (602,514)
101.34
45,000,000 (11,000,000)
124.44
Decrease in cash and cash equivalents 989,030 19,421,784 (1,863.72) 989,030 19,421,784 (1,863.72)
Cash and cash equivalents at 1 January 1,341,037 8,108,410 (504.64) 1,341,037
8,108,410 (504.64)
Cash and cash equivalents at 30th June 16
2,330,068 27,530,194
(1,081.52) 2,330,067 27,530,194 (1,081.52)
THREE MONTHS ENDED JUNE 30TH
DOCUMENT TITLE: 2018 SECOND QUARTER MANAGEMENT ACCOUNT
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30TH JUNE 2018
ACTUAL HISTORICAL ACTUAL HISTORICAL
Q2 2018 Q1 2017 CHANGE YTD 2018 YTD 2017 CHANGE
5. Turnover N N % N N %
TDU Inflow 119,077,889 3,166,808 97.34 320,548,782 7,859,698 97.55
HCW (Incineration) 5,933,599 1,870,896 68.47 9,210,306 7,804,442 15.26
E-waste - - - - - -
Cleaning and Decontamination 13,787,110 50,359,829 (265.27) 81,703,397 55,337,032 32.27
Asbestos 3,914,165 95,292,198 (2,334.55) 5,855,015 188,057,173 (3,111.90)
Other Income (note 7) 2,629,500 14,192,204 (439.73) 2,749,500 14,909,704 (442.27)
145,342,262 164,881,934 (13.44) 420,066,999 273,968,048 34.78
6. Cost of sales
Waste disposal 1,848,200 3,057,200 (65.41) 32,714,200 29,342,500 10.31
Hiring of equipment 13,819,575 12,810,713 7.30 62,634,009 14,065,838 77.54
Purchases - 9,200,999 (100.00) - 9,200,999 (100.00)
Diesel and lubricants 465,260 260,460 44.02 2,292,105 1,415,230 38.26
Repairs and Maintenance 7,310,178 1,704,360 76.69 14,198,413 7,770,637 45.27
Consumables 1,117,359 3,275,755 (193.17) 17,055,209 35,122,575 (105.93)
Depreciation 6,804,756 4,277,527 37.14 13,579,504 8,539,852 37.11
Direct wages 1,168,104 2,459,500 (110.55) 2,571,227 2,662,500 (3.55)
Community relations and security 655,846 43,128,342 (6,475.99) 48,534,378 45,527,202 6.20
Compliance
128,250 177,500 (38.40) 4,571,500 244,500 94.65
Other direct costs 57,009,224 9,182,267 83.89 59,432,023 10,933,398 81.60
90,326,751 89,534,623
0.88 257,582,567 164,825,232 36.01
6a. Other Direct Cost
Business Development
1,655,124 1,911,317
(15.48) 2,494,956 3,061,717 (22.72)
Insurance - 393,750 (100.00)
375,000 415,581 (10.82)
QHSE
1,354,100 6,877,200 (407.88) 2,562,067 7,456,100 (191.02)
Provision for WasteTreament
54,000,000 - 100.00 54,000,000 - 100.00
57,009,224 9,182,267
83.89 59,432,023 10,933,398 81.60
6b.
6c. Consumables
Orient Petroleum 137,700 - 100.00 137,700 - 100.00
SPDC- (Asbestos Local Package) 652,205 3,056,955 (368.71) 652,205 34,861,455 (5,245.17)
NPDC - 48,100 - 100.00
NNPC - 205,750 - 100.00
TDU 196,200 - 100.00 10,582,200 24,320 99.77
SNEPCO 58,700 - 100.00 356,700 18,000 94.95
Baker Hughes - 218,800 (100.00) - 218,800 (100)
Addax Petro 72,554 - 100.00 5,072,554 - 100.00
1,117,359 3,275,755 (193.17) 17,055,209 35,122,575 (105.93)
7. Other income
Sales of Secondary Products
2,629,500 1,200,000 54.36 2,749,500 1,917,500 30.26
Equipment Supply & Maintainance
- 12,767,300 (100.00) 12,767,300 (100.00)
Foreign exchange gains (note 14)
- 224,904 (100.00) - 224,904 (100.00)
2,629,500 14,192,204
(439.73) 2,749,500 14,909,704 (442.27)
Provision for WasteTreament: This represent provision for cost of treatment of waste by TIP collected within the period under review and whose income is recognized in this report
DOCUMENT TITLE: 2018 SECOND QUARTER MANAGEMENT ACCOUNT
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30TH JUNE 2018
ACTUAL HISTORICAL ACTUAL HISTORICAL
Q2 2018 Q2 2017 CHANGE YTD 2018 YTD 2017 CHANGE
N N % N N %
8. Staff costs
Medical expenses 1,290,387 871,583 32 2,156,762 1,013,883 52.99
Employer's pension contribution 1,375,088 1,225,913 11 2,732,538 2,408,213 11.87
Salaries and allowances 15,013,075 12,864,942 14 29,705,043 25,114,664 15.45
Staff welfare 344,650 100,000 71 344,650 150,000 56.48
18,023,200 15,062,438
16 34,938,993 28,686,759 17.89
9. Depreciation and impairment loss
Depreciation 1,530,320.46 1,374,169.30 10 3,038,488 2,734,369 10.01
1,530,320.46 1,374,169.30 10
3,038,488 2,734,369
10.01
10. Administrative expenses
Directors' remuneration 3,060,000 3,060,000 - 6,120,000 6,120,000 -
Directors' allowances and expenses
456,800 390,000 15
2,330,176 1,206,000
48.24
Board and AGM - 3,909,259 (100)
- 3,909,259 (100.00)
Transport and travelling expenses 504,750 566,068 (12)
1,232,357 1,338,708 (8.63)
Professional fees 1,620,000 3,853,115 (138)
3,226,189 7,850,356 (143.33)
Electricity (PHCN) 586,366 319,404 46 929,415 334,404 64.02
Fuel and diesel 2,168,158 1,561,914 28
3,388,313 4,022,686 (18.72)
Licenses/Permits and levies 1,190,405 1,870,322 (57)
1,373,955 2,567,922 (86.90)
Donation & Gift 100,000 220,000 (120)
350,000 230,000 34.29
Repairs and maintenance 1,232,400
515,800 58 2,494,100 1,297,350 47.98
Printing and stationery 245,373 251,060 (2)
583,249 604,840 (3.70)
Insurance 2,261,895 3,455,556 (53) 2,868,925 3,703,246 (29.08)
Telephone and postage 74,800 62,050 17
284,700 117,550 58.71
Entertainment 369,300 83,650 77
542,730 205,810 62.08
Internet expenses 868,769 943,795 (9)
1,318,144 1,215,395 7.79
Bank charges 252,759 633,287 (151)
854,504 977,161 (14.35)
Training expenses - - -
30,000 575,000 (1,816.67)
Local content tax 792,581 1,473,283 (86)
2,287,648 2,115,572 7.52
Subscription 525,000 217,500 59
555,500 354,400 36.20
Meal expenses 663,650 612,350 8
1,260,450 1,122,225 10.97
Corporate social responsibility 59,000 - 100
59,000 - 100.00
Advertisement - - -
- 10,000 (100.00)
Audit fee 1,000,000 - 100 2,000,000 - 100.00
Office Consumables 482,530 557,560 (16)
1,113,060 972,060 12.67
18,514,538 24,555,972
(33)
35,202,414 40,849,943
(16.04)
DOCUMENT TITLE: 2018 SECOND QUARTER MANAGEMENT ACCOUNT
DOCUMENT NO.: TIP-CFD-MNG -0014
REV NO.: 00
Page 12 of 21
NOTES TO THE FINANCIAL STATEMENTS
PERIOD ENDED 30TH JUNE 2018
11. Finance cost
ACTUAL HISTORICAL ACTUAL HISTORICAL
Q2 2018 Q2 2017 CHANGE YTD 2018 YTD 2017 CHANGE
N N % N N %
Interest on loans 3,508,206 561,028 84.01
5,926,477
1,088,405 81.63
Other financial charges 900,000 3,150,000 28.57
1,465,439
3,150,000 (114.95)
4,408,206 3,711,028
15.82
7,391,917 4,238,405
42.66
12. Foreign currency translation difference
This represents exchange difference arising from translation of foreign currency transactions during the period under review.
The following rates were applied : N350 TO $1 USD, N400 TO €1 EURO and N500 TO £1 GBP.
Exchange Gain or (Loss)
11,010
5,029,002.00 (45,576.68)
5,889,923.00
16,175,824.00
(174.64)
DOCUMENT TITLE: 2018 SECOND QUARTER MANAGEMENT ACCOUNT
DOCUMENT NO.: TIP-CFD-MNG -0014
REV NO.: 00
Page 13 of 21
NOTES TO THE FINANCIAL STATEMENTS
PERIOD ENDED 30TH JUNE 2018
13. Property, plant and equipment
The carrying amount of property, plant and equipment is stated as follows;
Cost/valuation
Depreciation and Carrying
impairment loss amount
N N N
Land and Building
184,505,900 (7,762,689) 176,743,212
Plant and machinery
540,221,729 (56,335,681) 483,886,048
Motor vehicles
2,694,000 (1,977,125) 716,875
Furniture and fittings
3,906,000 (3,235,232) 670,768
Office & HSE equipment
7,891,560 (3,715,393) 4,176,167
739,219,189 (73,026,119) 666,193,070
Land and
Building
Plant and
Machinery
Capital- Work - in-
Progress.
Motor Vehicles
Furniture
and Fittings
Office & HSE
Equipment
Total
13.1
Cost/valuation
N N N N N N
At 1 January 2018
149,333,285 431,579,460 142,802,735 2,694,000 3,906,000 7,396,560 737,712,040
Additions
540,000 472,149.29 - - - 495,000 1,507,149
Transfer in the period
34,632,615 108,170,120 (142,802,735) - - - (0)
At 30th June 2018
184,505,900 540,221,729 - 2,694,000 3,906,000 7,891,560 739,219,189
13.2 Depreciation and impairment loss
At 1 January 2018
(6,475,689) (42,756,177) (1,640,375) (2,584,297) (2,845,590) (56,302,128)
Charge for the year
(1,287,000) (13,579,504) (336,750) (650,935) (869,803) (16,723,991)
At 30th June 2018
(7,762,689) (56,335,681) - (1,977,125) (3,235,232) (3,715,393) (73,026,119)
Carrying amount
At 30th June 2018
176,743,212 483,886,048 - 716,875 670,768 4,176,167 666,193,070
At 30th June 2017
141,303,008 320,747,112 129,033,141 1,511,234 1,268,485 4,901,830 598,764,810
At 31st December 2017
142,857,596 388,823,282 139,491,035 1,053,625 1,321,703 4,550,970 678,098,211
13.3 Capital work-in-progress
This represents costs incurred by The Initiates Pic on property, plant and equipment which have were undergoing installation as at 31st December 2017.
However these equipment are now transferred to Plant and equipment as they are now used for operation effective 1st Janauary 2018.
2018 2017
Incinerator and E-Waste Plant Buildings 34,632,715 34,632,715
E-Waste Plant 37,073,693 36,723,693
Incinerator Plant 43,419,670 40,457,970
Vacuum Pump Bullseye - 75,826,638
Rotocar 24,676,657 24,676,657
Transformer 3,000,000 3,000,000
Transfer (142,802,735) (75,826,638)
- 139,491,035
DOCUMENT TITLE: 2018 SECOND QUARTER MANAGEMENT ACCOUNT
DOCUMENT NO.: TIP-CFD-MNG -0014
REV NO.: 00
Page 14 of 21
NOTES TO THE FINANCIAL STATEMENTS
PERIOD ENDED 30TH JUNE 2018
ACTUAL HISTORICAL
YTD 2018 YTD 2017 CHANGE
N N %
14. Inventories
Technical material 395,745 0.00 100.00
QHSE inventory 554,933 0.00 100.00
Stationeries 50,571 0.00 100.00
Diesel 1,352,333 0.00 100.00
2,353,582.02 0.00 100.00
15. Trade and other receivables
Trade receivables 564,769,195 219,485,205 61.14
Staff loan and advances 1,593,128 6,226,145 (290.81)
566,362,323 225,711,350
60.15
16. Cash and cash equivalents
Cash and cash equivalents represent cash in hand and at bank as at end of the period.
Cash in hand 272,727 58,245 78.64
Cash at bank 2,057,340 27,471,949 (1,235.31)
2,330,067 27,530,194
(1,081.52)
17. Current tax assets
This represent Prepaid expenses
6,019,626 7,887,917 (31.04)
6,019,626 7,887,917
(31.04)
18. Other Current tax assets
This represents withholding tax receivable in the year.
87,968,412 65,507,459
25.53
DOCUMENT TITLE: 2018 SECOND QUARTER MANAGEMENT ACCOUNT
DOCUMENT NO.: TIP-CFD-MNG -0014
REV NO.: 00
Page 15 of 21
NOTES TO THE FINANCIAL STATEMENTS
PERIOD ENDED 30TH JUNE 2018
ACTUAL HISTORICAL
YTD 2018 YTD 2017 CHANGE
N N %
19. Share capital
Authorised: (note 19.1)
900,000,000 ordinary shares of N0.50 each
450,000,000 450,000,000 -
Issued and fully paid: (note 19.2)
889,981,552 ordinary shares of N0.50 each
444,990,776 444,990,776 -
19.1 Authorized share capital
19.2 Paid up share capital
20. Share premium
At 1 January
17,780,000 17,780,000 17,780,000
At 30th June 2018
17,780,000 17,780,000 17,780,000
21. Revaluation Reserve
At 1 January 83,410,528 83,410,528 -
At 30th June 2018
83,410,528 83,410,528 -
22. Deffered Tax Liability
At 1 January 29,276,182 46,533,814 (58.95)
Movement in the year - (17,257,632) (100.00)
29,276,182 29,276,182 -
At the 12th - 16th Annual General Meeting held on 23rd March 2015, the authorized share capital of the
company which was formerly 350,000,000 ordinary shares of N1.00 each was converted to 900,000,000
ordinary shares of N0.50 each.
At the 12th - 16th Annual General Meeting held on 23rd March 2015, the paid up share capital of the
company was increased by the capitalization of dividends for 2013 and 2014 and also issue of bonus
shares to shareholders.
On 1 April 2008, the company's property, plant and equipment were revalued by Messrs. Jide Taiwo &
Co., on the basis of depreciated replacement cost to arrive at open market value of N76,586,905. The
revalued amount was incorporated in the 2008 financial statements.The surplus of N45,909,136 arising
therefrom was transferred to revaluation reserve account.
On 9 July 2015, the company's property, plant and equipment were revalued by Messrs. Ubochi Eleh &
Co., on the basis of open market value of N445,148,000. The revalued amount was incorporated in these
financial statements.The surplus of N37,501,392 arising therefrom was transferred to revaluation reserve
account.
DOCUMENT TITLE: 2018 SECOND QUARTER MANAGEMENT ACCOUNT
DOCUMENT NO.: TIP-CFD-MNG -0014
REV NO.: 00
Page 16 of 21
NOTES TO THE FINANCIAL STATEMENTS
PERIOD ENDED 30TH JUNE 2018
ACTUAL HISTORICAL
YTD 2018 YTD 2017 CHANGE
N N %
23. Retained earnings
At 1 January 144,714,472 152,938,913 (5.68)
Performance Bonus - (6,000,000) (100.00)
Dividend paid
- (26,699,446) (100.00)
Profit for the period 61,434,466 24,475,005 60.16
206,148,938 144,714,472 29.80
24. Trade and other payables
Trade payables 166,505,891 51,312,827 69.18
Dividend payable (note 23.1) 36,125,938 27,503,088 23.87
Accruals (note 23.2) 194,493,607 49,413,732 74.59
397,125,436 128,229,647
67.71
24.1 Dividend payable
At 1 January 526,676 803,641 (52.59)
Prior Year Dividends approved during the year (note 24.1.1) 35,599,262 26,699,447 25.00
Payments made during the period - - -
At 30th June 2018
36,125,938 27,503,088
23.87
24.1.1 Cash Dividend
24.2 Accruals
Accrued Directors' Fees 457,000 1,118,000 (144.64)
Accrued Director's Emolument 790,739 5,000 99.37
Provision for Treatment of Waste (24.2.1) 187,478,218 45,794,018 75.57
Accrued CSR (note 24.2.2) 1,200,000 - 100.00
Accrued direct wages 207,149 2,496,714 (1,105.27)
Accrued staff salaries and performance bonus 4,360,501 - 100.00
194,493,607 49,413,732
74.59
24.2.1
Consumables (Asbestos)
40,580,936 32,844,990
123.55
Consumables (Other Waste)
20,000,000 9,179,971
(100.00)
Maintenance
9,950,000 -
(100.00)
Rentals
5,525,364 -
(100.00)
Direct Wages
5,000,000 -
(100.00)
Security Expenses
23,027,618 2,519,259
(100.00)
Haulage & Disposal
83,394,300 1,249,799
(6,472.62)
Total Prov. for Treatment of Waste
187,478,218 45,794,018
409.39
24.2.2
Accrued CSR:
At the BOD Meeting held on 25 April 2018, 4 kobo per ordinary share was approved out of the profit for the year ended 31
December 2017, to be paid to Shareholders whose names were in the register as at 30 June 2018.
This represent four year scholarship 0f N300, 000 per year awarded by the Management to the children of Late Mr. Frank
Igeleke (Procurement Office) on his demise on the 21st of August 2017.
Provision for Treatment of Waste : This includes ealier provision made for unfinished asbestos project and current
N54 million made for waste in TIP storage pit.
DOCUMENT TITLE: 2018 SECOND QUARTER MANAGEMENT ACCOUNT
DOCUMENT NO.: TIP-CFD-MNG -0014
REV NO.: 00
Page 17 of 21
NOTES TO THE FINANCIAL STATEMENTS
PERIOD ENDED 30TH JUNE 2018
ACTUAL HISTORICAL
YTD 2018 YTD 2017 CHANGE
N N %
25. Current tax liabilities
Company Income Tax 11,059,740 4,246,379 61.61
11,059,740 4,246,379
61.61
26. Other current tax liabilities
Pay As You Earn 437,583 746,332 (70.56)
Withholding tax payable 19,917,572 7,301,745 63.34
Value Added Tax (VAT) Liability 3,349,355 - 100.00
Value Added Tax - Customers 39,088,572 21,354,023 45.37
62,793,082 29,402,100
53.18
27. Employees' benefits
Pension Contr Payable-Employees 1,002,874 715,761 28.63
Pension Contr Payable- Employer 1,842,540 857,502 53.46
Defined contribution plans (note 25.1)
2,845,414 1,573,263
44.71
27.1 Defined contribution plans
At 1 January 2,669,645 21,661 99.19
Provision for the period 2,845,414 2,669,645 6.18
Payments made during the period (2,669,645) (21,661) 99.19
At 30th June 2018
2,845,414 2,669,645
6.18
28. Short term borrowings
Wema Bank Plc Time loan (note 28.2) 60,000,000 11,000,000 81.67
Repayments in the period (60,000,000) (11,000,000) 81.67
Wema Bank Plc IDF (note 28.2) 45,000,000 - 100.00
45,000,000 -
100.00
28.1 Invoice Discounting Facility from Wema Bank Plc
At 1 January
-
- -
Invoice Discounting Facility in the period 45,000,000.00 - 100.00
Repayments in the period - -
At 30th June 2018
45,000,000.00
- 100.00
28.2 Loan facility from Wema Bank Plc
At 1 January 60,000,000 11,000,000 81.67
Repayments in the period (60,000,000) (11,000,000) 81.67
At 30th June 2018 -
-
-
In 2017, a loan facility of N70.0 Million was obtained from Wema Bank Plc by The Initiates Plc to finance the purchase of
equipment (Vaccum Pump Bullseye) for execution of the contract awarded by Shebah Exploration & Production
Company, and this facility has a tenor of 180 days with interest rate of 29% per annum. TIP has sucessfuly paid up the
time loan. However one of Addax invoice was discounted to solve working capital need due to delay in payment of client.
These represent pension contribution. It is computed as follows: 8% of the employee's basic salary, housing and transport
is contributed monthly by the employee and 10% of the employee's basic salary, housing and transport is contributed by
the employer. The monthly contribution is remitted to the Pension Fund Administrators in accordance with the Nigerian
Pension Reform Act 2014.
DOCUMENT TITLE: 2018 SECOND QUARTER MANAGEMENT ACCOUNT
DOCUMENT NO.: TIP-CFD-MNG -0014
REV NO.: 00
Page 18 of 21
NOTES TO THE FINANCIAL STATEMENTS
PERIOD ENDED 30TH JUNE 2018
ACTUAL HISTORICAL ACTUAL HISTORICAL
Q2 2018 Q1 2017 CHANGE YTD 2018 YTD 2017 CHANGE
29. Information regarding directors and employees Number Number % Number Number %
Below N3,000,000
-
N3,000,001 - N7,000,000
-
N7,000,001 and above 1 1 - 1 1 -
1 1 - 1
1 -
29.2 Employees
Average numbers of persons employed during the year:
Management
3 2 33.33 3 2 33.33
Senior Staff
28 11 60.71 28 11 60.71
Junior Staff
24 34 (41.67) 24 34 (41.67)
55 47
14.55
55 47
14.55
Aggregate payroll costs N
Salaries and allowances
18,023,200 15,062,438
16.43
34,938,993 28,686,759
17.89
The number of employees in Nigeria with gross Number
emoluments within the bands stated were:
N100,000 - N500,000
10 18 (80.00) 10 18 (80.00)
N500,001 - N1,000,000
20 13 35.00 20 13 35.00
N1,000,001 - N1,500,000
6 6 - 6 6 -
N1,500,001 and above
19 10 47.37 19 10 47.37
55 47
14.55
55 47
14.55
DOCUMENT TITLE: 2018 SECOND QUARTER MANAGEMENT ACCOUNT
DOCUMENT NO.: TIP-CFD-MNG -0014
REV NO.: 00
Page 19 of 21
NOTES TO THE FINANCIAL STATEMENTS
PERIOD ENDED 30TH JUNE 2018
Guarantees and other financial commitments
The company did not guarantee any loan to the directors and officers of the company during the period.
Financial commitments
Contingent liabilities
There were no contingent liabilities arising from litigations in the ordinary course of business.
Capital commitments
There were no capital commitments at 30 June 2018.
Reclassification of Balances.
Certain comparative balances have been reclassified to provide a more meaningful comparison.
Events after the reporting date
Earnings per Share
Earning per share are based on profit after tax and number of fully paid ordinary shares.
ACTUAL HISTORICAL ACTUAL HISTORICAL
Q2 2018 Q2 2017 CHANGE YTD 2018 YTD 2017
CHANGE
N N % N N %
Profit attributable to ordinary shareholders (in naira) 9,404,435 22,982,778 (144.38)
61,434,466 24,475,005
60.16
Number of ordinary shares issued and fully paid for basic earnings per share (in number)
889,981,552 889,981,552
-
889,981,552 889,981,552
-
Number of ordinary shares issued and fully paid for diluted earnings per share (in number)
889,981,552 889,981,552 - 889,981,552 889,981,552
-
Basic earnings per 50 kobo share
0.01 0.03
(144.38)
0.07 0.03
60.16
Diluted earnings per 50 kobo share
0.01 0.03
(144.38)
0.07 0.03
60.16
There were no events after reporting date which could have had material effect on the state of affairs of the company at 30 June 2018 and on the total
comprehensive income for the year ended on that date which have not been adequately provided for or recognized.
The Directors are of the opinion that all known liabilities and commitments which are relevant in assessing the company's financial statements have
been taken into account in the preparation of the financial statements under review.
DOCUMENT TITLE: 2018 SECOND QUARTER MANAGEMENT ACCOUNT
DOCUMENT NO.: TIP-CFD-MNG -0014
REV NO.: 00
Page 20 of 21
STATEMENT OF VALUE ADDED
FOR THE PERIOD ENDED 30TH JUNE 2018
Q2 2018 Q2 2017 CHANGE YTD 2018 YTD 2017 CHANGE
N % N % % N % N % %
Turnover 145,342,262 164,881,934
420,066,999
273,968,048
145,342,262 164,881,934 420,066,999 273,968,048
Less: Bought in materials and services
Imported
Local
90,326,751 89,534,623 257,582,567 164,825,232
Value added
55,015,511
100.00
75,347,311
100.00
162,484,432
100
109,142,816
100
Applied as follows:
To pay employees' salaries wages and 40,945,943 74.43 43,329,438 57.51 (5.50)
77,533,323 47.72 73,775,107 67.60 5.09
other benefits
To pay Government taxation 3,134,812 5.70 7,660,926 10.17 (59.08) 20,478,155 12.60 8,158,335 7.47 151.01
To provide for enhancement of
assets and expansion:
- deferred tax - - - - - -
- depreciation of fixed assets 1,530,320 2.78 1,374,169 1.82 11.36
3,038,488 1.87 2,734,369 2.51 11.12
- retained in the business 9,404,435 17.09 22,982,778 30.50 (59.08)
61,434,466 37.81 24,475,005 22.42 151.01
55,015,511
100.00
75,347,311
100.00 (26.98)
162,484,432
100.00
109,142,816
100.00 48.87
Note:
"Value added" represents the additional wealth which the company has been able to create by its own and its employees' efforts. This statement shows the allocation of that wealth
amongst employees, capital providers, government, and that retained for future creation of wealth.
DOCUMENT TITLE: 2018 SECOND QUARTER MANAGEMENT ACCOUNT
DOCUMENT NO.: TIP-CFD-MNG -0014
REV NO.: 00
Page 21 of 21
FIVE YEARS FINANCIAL SUMMARY
2017 2016 2015 2014 2013
N N N N N
Assets employed
Non-current Assets
678,098,211 587,311,661 510,297,266 396,615,765 389,051,523
Other non-current assets
- - 10,000,000 6,778,298 32,131,887
Current Assets
465,676,462 271,955,506 218,027,195 288,667,790 126,758,848
Total Assets
1,143,774,673 859,267,167 738,324,461 692,061,853 547,942,258
Equity
Issued capital
444,990,776 444,990,776 444,990,776 341,490,777 294,471,108
Share premium
17,780,000 17,780,000 17,780,000 17,280,000 17,280,000
Revaluation reserve
83,410,528 83,410,528 83,410,528 45,909,136 45,909,136
Retained earnings
169,621,532 152,938,913 33,869,063 94,800,809 (12,658,659)
Other component of equity
- - - - 46,646,916
715,802,836 699,120,217 580,050,367 499,480,722 391,648,501
Liabilities
Non-current liabilities
29,276,182 46,533,814 8,268,457 - 27,333,333
Current liabilites
398,695,655 113,613,136 150,005,637 192,581,131 128,960,424
Total liabilities and equity
1,143,774,673 859,267,167 738,324,461 692,061,853 547,942,258
Turnover
664,901,943 648,144,614 345,766,927 611,828,467 -
Profit before taxation
73,466,455 203,183,451 60,051,096 132,655,217 85,950,899
Taxation
8,511,955 (65,052,877) (22,883,903) (36,485,715) (30,757,650)
Profit after taxation
81,978,410 138,130,574 37,167,193 96,169,502 55,193,249
Other Comprehensive income
Foreign currency translation difference
(16,504,401) (2,507,724) #DIV/0! 13,606,283 (989,501)
- - 37,501,392 - 3,681,500
Other comprehensive income for the year
(16,504,401) (2,507,724) #DIV/0! 13,606,283 2,691,999
Total comprehensive income for the year
65,474,009 135,622,850 #DIV/0! 109,775,785 57,885,248
Basic earnings per share (kobo)
9 16 4 28 19
Diluted earnings per share (kobo)
9 16 4 11 6
Net assets per share (kobo)
80 79 65 146 133
Basic earnings per share are calculated on the profit after tax and the number of fully paid ordinary shares at the end of each year.
Net assets per share are based on the net assets and the number of fully paid ordinary shares at the end of each year.
31 December
Revaluation surplus on property, plant and
equipment
Diluted earnings per share are calculated on profit after tax for each of the years and number of fully paid ordinary shares as at
31 December 2017.