ABC TRANSPORT : QUARTER 5 - FINANCIAL STATEMENT FOR 2023

ABC TRANSPORT PLC

CONSOLIDATED AND SEPARATE ANNUAL REPORT AND FINANCIAL STATEMENTS 31 DECEMBER 2023

ABC TRANSPORT PLC

CONSOLIDATED AND SEPARATE ANNUAL REPORT FINANCIAL

STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

INDEX		PAGE
Directors, Professional Advisers and Registered office	i
Summary of Performance	ii
Report of the Directors	iii
Report of the Audit Committee	vi
Statement of Directors' Responsibilities	1
Statement of Compliance	2
Management's Report on Assessment of Internal Control over Financial Reporting	3
Certification of Management's Assessment on Internal Control over Financial Reporting	4
Independent Practitioner's Report	5
Independent Auditor's Report	7-10
Consolidated	and Separate Statements of Financial Position	11
Consolidated	and Separate Statement of Profit or Loss and Other Comprehensive Income	12
Consolidated and Separate Statement of Changes in Equity	13
Consolidated and Separate Statement of Cash Flows	15
Notes to the financial statements	16
Other national disclosures:
Consolidated and Separate Statement of Value Added	79
Five-year Financial Summary - Group	80
Five-year Financial Summary - Company	81

ABC TRANSPORT PLC

CONSOLIDATED AND SEPARATE ANNUAL REPORT AND FINANCIAL STATEMENTS Directors, Professional Advisers and Registered Office

FOR THE YEAR ENDED 31 DECEMBER 2023

DIRECTORS:	Prince Olumide Obayomi	-	Chairman
	Mr. Frank Nneji	-	Non-Executive Director
	Mr. Jude Nneji	-	Managing Director
	Alh. Kabiru Yusuf	-	Non-Executive Director
	Pastor Bamidele Asije	-	Non-Executive Director
	Mr. Rex Okoro	-	Executive Director
	Mrs. Ifeoma Adeoye	-	Non-Executive Director
COMPANY
SECRETARY/LEGAL
ADVISER	Onyekachukwu C Chigbo, Esq.
REGISTERED	KM 5, MCC/Uratta Road, Umuoba Uratta
OFFICE:	P.O. BOX 2575, Owerri Imo State
	Tel: [phone],
	Fax: [phone]
	E-mail: [e-mail]
	www.abctransport.com
	Company Registration number:219970
	Company FRC number FRC/2012/00000000336
AUDITORS:	Mazars Professional Services
	18, Oba Akran Avenue,
	Ikeja, Lagos
	[phone]
PRINCIPAL	Fidelity Bank Plc
BANKERS:	Zenith Bank Plc
	Access Bank Plc
	Guaranty Trust Bank Plc
REGISTRAR	First Registrars Nigeria Limited
	Plot 2, Abebe Village Road
	Iganmu, Lagos

INVESTOR

RELATIONS	ABC Transport Plc has a dedicated Investor's portal on its corporate website which can
be accessed through this link:https://www.abctransport.com/investors.html
		I

ABC TRANSPORT PLC

SUMMARY OF PERFORMACE

FOR THE YEAR ENDED 31 DECEMBER 2023

The group and company's result for the year ended December 31,2023 are set out on page 8 of this report.

The summarised results are presented below:

	Group	Group	Company	Company
	2023	2022	2023	2022
	N'000	N'000	N'000	N'000
Revenue from contracts with customers	7,331,982	7,625,866	3,536,677	5,487,806
Gross Profit	1,665,001	1,304,565	891,184	1,040,052
(Loss)/Profit before income tax	(368,614)	279,225	260,936	122,906
Income tax expense	(171,941)	(219,119)	(112,965)	(92,415)
(Loss)/Profit after income tax	(540,555)	60,106	147,971	30,490
Total Asset	7,023,496	6,642,902	4,774,391	4,261,504
Shareholder's fund	522,770	798,365	989,897	877,816
Basic and diluted (loss)/Profit per share (Kobo)	(23)	2.51	6.18	1.27

As at the date of approval of the consolidated financial statement of the company, ABC Transport Plc's outlook for 2023 and beyond shows there is no going concern threat to the enterprise

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ABC TRANSPORT PLC

CONSOLIDATED AND SEPARATE ANNUAL REPORT AND FINANCIAL STATEMENTS

REPORT OF THE DIRECTORS

FOR THE YEAR ENDED 31 DECEMBER 2023

The Directors submit their report together with the audited financial statements for the year ended 31 December 2023.

		GROUP		COMPANY
1 OPERATING RESULT		2023	2022	2023			2022
		N'000	N'000	N'000	N'000
(Loss)/profit for the year	(540,555)	60,106	147,971			30,490

2 DIVIDEND

The Board has recommended the payment of 2.5 kobo (2022 : 1.5 kobo) per ordinary share to members. The resolution to this effect will be put to members at the Annual General Meeting.

3 LEGAL FORM

ABC Transport Plc was incorporated as a Private Limited Company on April 5, 1993 and also commenced operation that same year, the company was converted to a Public Limited Liability Company on November 21, 2005. The shares were quoted on the Nigerian

Stock Exchange on December 20, 2006. As approved by the Shareholders at the Annual General Meeting of 12th August 2011, the Company's name was changed from Associated Bus Company Plc to ABC Transport Plc in 2011.

4 PRINCIPAL ACTIVITIES

The principal activities of the Group include road transportation and logistics. It provides both long and short haul bus services as well as bus charter services; consolidated cargo and haulage services within Nigeria and the West African sub- region. It is also engaged in the import/sale of vehicle spares, assembly of heavy-duty trucks and the hospitality business.

5 DIRECTORS AND DIRECTORS' INTERESTS

None of the directors has notified the Company for the purpose of section 303 of the Companies and Allied Matters Act, 2020 of their direct or indirect interest in contracts or proposed contracts with the Company during the year ended 31 December 2023.

6 DIRECTORS' RESPONSIBILITIES

The Directors are responsible for the preparation of the financial statements which give a true and fair view of the statement of financial position of the Company at the end of each financial year and of the profit or loss for that period and which comply with the Companies and Allied Matters Act, 2020. In doing so they ensure that:

• proper accounting records are maintained;
• internal control procedures are instituted which as far as is reasonably possible, safeguard the assets and prevent and detect fraud and other irregularities;
• applicable accounting standards are followed;
• suitable accounting policies are adopted and consistently applied;
• judgments and estimates made are reasonable and prudent; and
• the going concern basis is used, unless it is inappropriate to presume that the Company will continue in business.

7 Directors' Shareholdings: Section 301 of the Companies and Allied Matters Act 2020

			Indirect
		Direct Interest as	Interest as at	Direct Interest as	Indirect Interest
S/N	Name	at Dec. 2023	Dec. 2023	at Dec. 2022	as at Dec. 2022
1	Prince Olumide Obayomi	110,000	5,720,000	110,000	5,720,000
2	Mr. Francis Nneji	1,051,680,000	335,935,826	1,051,680,000	335,935,826
3	Mr. Jude Nneji	30,580,213	-	30,580,213	-
4	Alh. Kabiru Yusuf	1,474,000	-	1,474,000	-
5	Mr. John Okoro*		-	1,524,185	-
6	Mr. Bamidele Asije	700,000	279,835,881	700,000	279,835,881
7	Mr. Rex Okoro	1,000,000	-	-	-
8	Mrs Ifeoma Adeoye	-	-	-	-

Prince Olumide Obayomi, Mr. Francis Nneji and P a s t o r Bamidele Asije have indirect shareholdings through Royal Funbay Limited, Rapido Ventures Ltd. and Drolemoc Farms Limited respectively.

*Mr. John Okoro resigned as a Director effective 30th June 2023.

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ABC TRANSPORT PLC

CONSOLIDATED AND SEPARATE ANNUAL REPORT AND FINANCIAL STATEMENTS

REPORT OF THE DIRECTORS

FOR THE YEAR ENDED 31 DECEMBER 2023

8 PROPERTY, PLANT & EQUIPMENT

Movements in fixed assets during the year are shown in the financial statement in note 14

9 MAJOR SUPPLIERS:

The Company's significant local suppliers are:

1. O. ObisonInt'l Agency Chidel Ventures Ltd. Jibeco Nigeria Limited
   Kwereson Ent. Nigeria Limited - Lagos Ideal Standard Services
   1st Magnificent Energy Ltd. Amanni Oil and Gas
   Iyke Paulson Co. Nig. Ltd.

10 DONATIONS

The following amounts have been given by way of donations and gifts during the year under review.

	N'000
Corporate gifts	831
Condolences, Burial, Weddings, etc.	1,495
	2,326

There was no donation or gift made to any political party, political association or for any political purpose in the course of the year under review.

11 EMPLOYMENT AND EMPLOYEES

1) Employment and Employees

ABC Transport Plc is an equal opportunity employer concerned with the retention of staff and strives to remain the employer of choice within the road transport sector. The company provides a total compensation package that enables it to attract and retain highly skilled and qualified employees while recognizing the need to manage payroll costs.

2) Employment of Disabled Persons

The Company has reviewed its employment policy in line with the needs of the business. A policy of the Company stipulates that there should be no discrimination in considering applications for employment including those from disabled persons. All employees whether or not disabled are given equal opportunities to develop.

3) Work Environment

The Company strives to ensure a safe working environment for its employees. Health and safety regulations are in force within the Company's premises and employees are aware of existing regulations. Subsidies are provided to all levels of employees for medical, transportation, housing etc.

4) Employee Involvement, Development and Training

Training workshops and seminars are organized regularly for employees at all levels. The Company places a great premium on the involvement of its employees in the attainment of its goals. It is also committed to keeping them informed about its progress and performance. The Company equally seeks the views of its employees particularly concerning matters which directly affect them.

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ABC TRANSPORT PLC

CONSOLIDATED AND SEPARATE ANNUAL REPORT AND FINANCIAL STATEMENTS

REPORT OF THE DIRECTORS

FOR THE YEAR ENDED 31 DECEMBER 2023

Formal meetings are held amongst staff within the operational zones and suggestions and opinions of employees are sought and considered on the general operations of the company as well as matters affecting them.

Career development of each employee and succession planning are major priorities of the company. The employees of the company attend short and long term training programmes which are tailored to meet the needs of both the employee and company. Employees are adequately rewarded and motivated to achieve results.

5) Health, safety at work and welfare of employees

The company considers the health, safety and welfare of its employees of paramount importance. In pursuance of this, the company has a group life insurance policy and pension scheme. It has also retained the services of healthcare providers across various locations. Safety standards are adhered to in the workplace. The employees of the company are currently enrolled by the company to the National Health Insurance Scheme.

6) Safety Policy

ABC places a high premium on the safety of its passengers and crew while on transit. To this end, the company organizes quarterly safety re-orientation and training programmes for its crew. All the vehicles in our fleet are fitted with tracking devices and speed limiters which monitor the speed of the vehicles. For the period under review, the accident rate of the company's fleet was well within acceptable limits, with a large number of the recorded accidents attributable to the errors and miscalculations of other road users.

12. COMPLAINTS MANAGEMENT POLICY

ABC Transport Plc has in place a Complaints Management Policy in accordance with the requirement of the Securities and Exchange Commission. The policy sets out the broad framework for receiving, registering and handling shareholders and investors complaints in an impartial, confidential and timely manner.

13. SECURITIES TRADING POLICY

ABC Transport Plc has a Securities Trading Policy which applies to all employees and Directors. The policy applies to all employees that may at any time possess any insiders or material information about the company. The trading policy includes the need to enforce confidentiality against external advisers.

14. INDEPENDENT AUDITORS

In accordance with Section 401(2) of the Companies and Allied Matters Act 2020, Mazars Professional Services has indicated their willingness to continue in office as the Company's Auditors. A resolution will be proposed authorising the Directors to determine their remuneration.

BY ORDER OF THE BOARD

Onyekachukwu C. Chigbo, Esq.

Company Secretary/Legal Adviser

FRC/2020/002/00000021630

Imo State,

Nigeria.

Dated this 27th day of April 2024

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ABC TRANSPORT PLC

REPORT OF THE AUDIT COMMITTEE

TO THE MEMBERS OF ABC TRANSPORT PLC

In compliance with Section 404(4) of the Companies and Allied Matters Act 2020, we, the members of the Audit Committee of ABC Transport Plc, having carried out our statutory functions under the Act hereby report that:

1. The scope and planning of both the external and internal audit programs for the year ended 31st December, 2023 were adequate in our opinion.
2. The accounting and reporting policies of the company are in conformity with statutory requirements and agreed ethical practices.
   3.The company's systems of accounting and internal controls were adequate.

1. Having reviewed the External Auditor's findings and recommendations on management matters, we are satisfied with management's response thereon.

Finally, we acknowledge Management's co-operation in the conduct of these duties.

The members of the Statutory Audit Committee for the 2023 financial year were:

Mr. Chibuzor Eke (Chairman)	Shareholders' Representative
Mr. Jude Okpala	Shareholders' Representative
Mr. Kenneth Nnabuike Nwosu	Shareholders' Representative
Alh. Kabiru Yusuf	Directors' Representative
Pastor Bamidele Asije	Directors' Representative
Barr. Onyekachukwu C. Chigbo	Company Sec/ Sec. of Committee

Date: 26th April 2024

MR. CHIBUZOR EKE

Chairman, Audit Committee

FRC/2013/NIMN/00000004670

VI

ABC TRANSPORT PLC

STATEMENT OF DIRECTORS' RESPONSIBILITIES

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

The Companies and Allied Matters Act, 2020, requires the Directors to prepare consolidated and separate financial statementss for each financial year that give a true and fair view of the statement of financial position of the group and its subsidiaries at the end of the year and of its profit or loss and other comprehensive income. The responsibilities include ensuring that the group and its subsidiaries and its

1. keeps proper accounting records that disclose, with reasonable accuracy, the financial position of the group and its subsidiaries and its subsidiaries and comply with the requirements of the Companies and Allied Matters Act, 2020;
2. establishes adequate internal controls to safeguard its asset and to prevent and detect fraud and other irregularities; and
3. prepares its consolidated and separate financial statementss using suitable accounting policies supported by reasonable and prudent judgments and estimates, and are consistently applied.

The Directors accept responsibility for the annual consolidated and separate financial statements, which	`
have been prepared using appropriate accounting policies supported by reasonable and prudent judgment
and estimates, in accordance with International Financial Reporting Standards issued by the International
Accounting Standards Board; in compliance with Financial Reporting Council of Nigeria Act No. 42, 2023
and in the manner required by the Companies and Allied Matters Act, 2020.
The Directors are of the opinion that the consolidated and separate financial statementss give a true and
fair view of the financial position of the group and its subsidiaries and of its (loss)/profit for the year ended
31 December 2023. The Directors further accept responsibility for the maintenance of accounting records
that may be relied upon in the preparation of consolidated and separate financial statementss, as well as
adequate systems of internal financial control.
Nothing has come to the attention of the Directors to indicate that the group and its subsidiaries will not
remain a going concern for at least twelve months from the date of this statement.
______________________________		_______________________________
Prince Olumide Obayomi	Mr Jude Nneji
Director	Director
FRC/2014/ICAN/009248	FRC/2015/PCNNG/0000011844
Date: 27 April 2024	Date: 27 April 2024

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ABC TRANSPORT PLC

STATEMENT OF COMPLIANCE IN RELATION TO THE CONSOLIDATED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

Certification Pursuant to Section 405(1) of Companies and Allied Matter Act, 2020

We the undersigned hereby certify the following with regards to our Audited Financial Statements for the year ended 31 December 2023 that:

a) We have reviewed the report;

To the best of our knowledge, the report does not contain:

• Any untrue statement of a material fact, or
• Omit to state a material fact, which would make the statements misleading in the light of circumstances under which such statements were made;

1. To the best of our knowledge, the financial statement and other financial information included in this report fairly present in all material respects the financial condition and results of operation of the company as of, and for the periods presented in this report.
2. We:

• are responsible for establishing and maintaining internal controls.
• have designed such internal controls to ensure that material information relating to the Company is made known to such officers by others within the entity particularly during the period in which the periodic reports are being prepared;
• have evaluated the effectiveness of the Company's internal controls as of date within 90 days prior to the report;
• have presented in the report our conclusions about the effectiveness of our internal controls based on our evaluation as of that date;

d) We have disclosed to the auditor of the Company and Audit Committee:

• All significant deficiencies in the design or operation of internal controls which would adversely affect the company's ability to record, process, summarize and report financial data and have identified for the company's auditor any material weakness in internal controls; and
• Any fraud, whether or not material, that involves management or other employees who have significant role in the company's internal controls.

We have identified in the report whether or not there were significant changes in internal controls or other factors that could significantly affect internal controls subsequent to the date of our evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Mr Jude Nneji	Mr. Rex Okoro
Managing Director/CEO	Chief Finance Officer
FRC/2015/PCNNG/0000011844	FRC/2014/ICAN/007350
Date: 27 April 2024	Date: 27 April 2024

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