ARBICO : QUARTER 3 - FINANCIAL STATEMENT FOR 2023

ARBICO PLC UNAUDITED FINANCIAL STATEMENT FOR PERIOD ENDED 30 SEPTEMBER 2023

1

Table of Content

Results at a glance	3
Statement of comprehensive income	4
Statement of financial position	5
Statement of changes in equity	6
Statement of cash flows	7
Notes to the financial statements	8

2

Result at a Glance:

							THE GROUP				THE COMPANY
				2023			2022			2023			2022
				SEP			SEP			SEP			SEP
				₦'000			₦'000			₦'000			₦'000
	Revenue			4,348,332			6,774,796			4,281,309			6,381,248
	Profit/Loss Before			(105,245.00)			72,859			232,162			143,979
	Tax
	Earnings per share			(0.69)			0.49			1.56			0.97

BY ORDER OF THE BOARD

COMPANY SECRETARY FRC/2013/NBA/00000000001615 26th October 2023

3

UNAUDITED CONSOLIDATED &

SEPARATE STATEMENTS OF PROFIT OR

LOSS AND OTHER COMPREHENSIVE

INCOME

FOR THE PERIOD ENDED 30 SEPTEMBER

2023

		THE					THE
		GROUP					COMPANY

NOTES
	9 MONTHS	3 MONTHS	9 MONTHS	3	9 MONTHS	3 MONTHS	9 MONTHS	3 MONTHS
	JAN-	MONTHS
	JUL- SEPT	JAN- SEPT	JAN- SEPT	JUL- SEPT	JAN- SEPT	JUL- SEPT
	SEPT	JUL- SEPT
	2023	2023	2022	2022	2023	2023	2022	2022
	₦'000	₦'000	₦'000	₦'000	₦'000	₦'000	₦'000	₦'000
Revenue 6	4,348,332	1,359,961	6774796	2241770	4,281,309	1,349,865	6381248	2032167
Cost of Sales 7	(4,053,311)	(1,432,900)	(6002190)	(3165263)	(3,721,505)	(1,426,937)	-5594116	-2762877
Gross Profit	295,021	(72,939)	772,606	(923,493)	559,804	(77,072)	787,132	(730,710)
Other Operating Income 8	30,375	17,303	8,037	4,509	30,375	17,303	7,921	4,499
Administrative Expenses 9	(430,641)	(188,884)	(707,784)	(351,669)	(358,017)	(134,704)	(651,074)	(340,065)
Expected Credit loss			-	-		.	-	-
Operating (loss)/profit	(105,245)	(244,520)	72,859	(1,270,653)	232,162	(194,473)	143,979	(1,066,276)
Finance income 10			-				-	-
(Loss)/profit before income taxation	(105,245)	(244,520)	72,859	(1,270,653)	232,162	(194,473)	143,979	(1,066,276)
Income Tax Expenses 11	-	-	-	-	-	-	-	-
(Loss)/profit For The Period	(105,245)	(244,520)	72,859	(1,270,653)	232,162	(194,473)	143,979	(1,066,276)
Other comprehensive income (loss)/income	-		-	-			-	-
for the year, ne
Total Comprehensive (loss)/Income	(105,245)	(244,520)	72,859	(1,270,653)	232,162	(194,473)	143,979	(1,066,276)
attributable to:
Equity holders of parent	(101,871)	9,467	73,570	(1,271,945)	232,162	(194,473)
Non Controlling Interest	(3,374)	1,333	(711)	1,292	-	-
to
Ordinary equity holders of the parent 12	(0.69)	(1.65)	0.49	(8.56)	1.56	(1.31)	0.97	(7.18)

4

ARBICO PLC

UNAUDITED CONSOLIDATED AND SEPARATE STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2023

NOTES

ASSETS

NON - CURRENT ASSETS

					THE GROUP
	9 MONTHS		9 MONTHS
	JAN-SEPT 2023		JAN-SEPT 2022		JAN-DEC 2022
	₦'000		₦'000		₦'000

					THE COMPANY
	9 MONTHS		9 MONTHS
	JAN-SEPT 2023		JAN-SEPT 2022		JAN-DEC 2022
	₦'000		₦'000		₦'000

	Property Plant and Equipment		13			1,317,242					1,505,370		1,317,242				1,382,713
						1,579,986			1,457,348
	Intangible Assets		14			2,490					3,280		2,490				3,280
						4,070			4,070
	Deferred Tax Asset		11			1,261,958			1,261,958		1,261,958		1,261,958		1,261,958		1,261,958
	Investment in Subsidiary		15										27,104		27,104		27,104
	Other assets
	TOTAL NON CURRENT ASSETS					2,581,690			2,846,014		2,770,608		2,608,793		2,750,480		2,675,055
	CURRENT ASSESTS
	Inventories					4,340,404			1,788,233		2,904,179		3,205,720		1,292,878		2,276,697
	Contract asset					12,600,303			7,205,646		10,716,279		11,719,038		6,827,594		10,256,400
	Trade and other receivables					289,593			738,783		5,746,024		1,618,657		2,145,654		7,617,168
	Prepayments					8,614,628			4,209,457		5,183,663		8,559,706		3,751,603		4,810,420
	Other asset					-					1,093,151		-		-		925,398
	Cash and cash equivalents					884,711			910,614		40,869		665,262		1,292,155		12,347
	TOTAL CURRENT ASSETS					26,729,638			14,852,733		25,684,165		25,768,384		15,309,884		25,898,430
	TOTAL ASSETS					29,311,329			17,698,747		28,454,773		28,377,177		18,060,364		28,573,485
	LIABILITIES
	NON - CURRENT LIABILITIES
	Share Deposit		22			1,950,000			1,950,000		1,950,000		1,950,000		1,950,000		1,950,000
	TOTAL NON-CURRENT LIABILITY					1,950,000			1,950,000		1,950,000		1,950,000		1,950,000		1,950,000
	CURRENT LIABILITIES
	Contract liability					10,729,308			6,542,089		15,685,856		9,745,351		5,696,691		14,701,899
	Bank overdraft					-					151,321		-				151,321
	Trade and other payables					19,504,226			9,771,650		10,929,816		19,296,144		9,428,559		11,146,022
	Income tax payable					185,999			52,036		217,400		185,999		52,036		217,400
	TOATL CURRENT LIABILITY					30,419,534			16,365,775		26,984,393		29,227,494		15,177,286		26,216,642
	TOTAL LIABILITY					32,369,534			18,315,775		28,934,393		31,177,494		17,127,286		28,166,642
	EQUITY
	Share Capital		21			74,250			74,250		74,250		74,250		74,250		74,250
	Share Premium		21			141,184			141,184		141,184		141,184		141,184		141,184
											1,193,534						1,193,534
	Asset revaluation reserve		21			1,193,534			(2,021,030)				1,193,534		(475,890)
	Accumulated losses					(4,463,799)			1,193,534		(1,878,821)		(4,209,285)		1,193,534		(1,002,125)
	Non-controlling interests					(3,374)					(9,767)		-		-		-
									(4,966)
	TOTAL EQUITY					(3,058,205)			(617,028)		(479,620)		(2,800,317)		933,078		406,843
	TOTAL EQUITY AND LIABILITY					29,311,329			17,698,747		28,454,773		28,377,178		18,060,364		28,573,485

5

ARBICO Plc

Statement of changes in equity

30 September 2023

The Group
			Issued Capital (Note	Share Premium (Note	Asset revaluation				Non controlling
		21)	21)	surplus		Other reserves	Total	interest	Total
			₦'000		₦'000	₦'000		₦'000	₦'000	₦'000	₦'000
As at 1 January 2023			74,250		141,184	1,193,534		(4,361,928)	(2,952,960)	-		(2,952,960)
Effective of adoption of new standard		-		-	-	-	-	-		-
As at 1 January 2023		74,250		141,184	1,193,534	(4,361,928)	(2,952,960)	-		(2,952,960)
Profit/(Loss) for the year/Changes		-		-	-	(101,871)	(101,871)	(3,374)		(105,245)
Other comprehensive income		-		-	-	-	-	-		-
Total comprehensive income		-		-	-	(101,871)	(101,871)	(3,374)		(105,245)
Acquisition of subsidiary		-		-	-	-	-	-
At 30 September 2023		74,250		141,184	1,193,534	(4,463,799)	(3,054,831)	(3,374)		(3,058,205)

Issued Capital (Note	Share Premium (Note	Asset revaluation
21)	21)	surplus
₦'000	₦'000	₦'000

Other reserves

₦'000

Total

₦'000

Non controlling interest

₦'000

Total

₦'000

		-	-
		-	-

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ARBICO PLC

UNAUDITED CONSOLIDATED & SEPARATE STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 30 SEPTEMBER 2023

THE GROUP THE COMPANY

		Sept.	Sept	Dec.	Sept.	Sept.	Dec.
			2022	2022	2023	2022	2022
		2023
		₦'000	₦'000	₦'000	₦'000	₦'000	₦'000

Operating activities	Notes
(Loss)/profit before tax		(105,245)	72,859	514,792	232,162	143,980	441,027
Adjustments to reconcile profit before tax to net cash flows
Depreciation of property, plant and equipment	13	72,025	193,857	275,018	72,025	193,875	275,038
Amortisation of intangible assets		790	1,579	2,369	790		2,369
Net Unrealized foreign exchange (gain)/loss	9			(54,437)	-		(14,647)
Profit on disposal of property, plant and equipment	8&9			-	-		-
Finance income	10						-
Impairment of receivables	9			-	-		-
Expected credit loss - Contract asset				217,913	-		217,913
Expected credit loss - Intercompany receivables	9		-	139,103	-		139,103
Contract asset recognised in revenue			-	-		85,663
Contract liability recognised in revenue					-
		(32,430)	268,295	1,094,758	304,977	337,855	1,146,466
Working capital adjustments
Increase in trade and other receivables		252,021	(556,073)	(3,203,669)	(971,993)	(52,860)	(5,000,163)
(Increase)/ decrease in prepayments		(8,494,351)	(55,290)	(2,888,664)	(8,447,469)	64,217	(2,685,998)
increase in inventories		(2,941,842)	(894,338)	(935,795)	(2,061,232)	679,701	(643,952)
Increase in contract asset		(6,310,121)	(5,668,246)	(8,507,657)	(5,546,804)	(5,278,151)	(8,060,327)
Increase/ (decrease) trade and other payables		11,670,744	3,793,273	4,186,166	11,895,128	1,777,619	4,981,411
Increase/(decrease) in advance from customers		-	4,372,913	9,976,221	-	4,527,596	9,985,535
Increase/(decrease) in contract liabilities		4,069,885		-	3,931,326		-
Other asset(restricted)				(525,784)			(504,715)
Income tax paid	11			(39,588)			(39,588)
Cash flows from/(used in) operating activities		(1,786,095)	1,260,534	(844,012)	(896,066)	2,055,977	(821,331)
Net cash flows from/(used in) operating activities		(1,786,095)	1,260,534	(844,012)	(896,066)	2,055,977	(821,331)
Investing activities
Purchase of property, plant and equipment	13		(239,582)	(247,536)		(239,582)	(247,536)
Finance income			1,329	-	-	1,329	-
Proceed from sale of property, plant and equipment		250,332		-	127,694
Purchase of intangible assets	14	1,974	-		1,974
Increase in other Investment
Advance payment in fixed deposit (restricted)				-
Financing activities Movement	10	1,690,206	(837,070)		364,065	(1,174,194)
Net cash flows used in investing activities		1,942,513	(1,075,323)	(247,536)	493,733	(1,412,447)	(247,536)
Net increase/(decrease) in cash and cash equivalents		156,418	185,211	(1,091,548)	(402,333)	643,530	(1,068,867)
Net foreign exchange difference		-	-	54,437	-	-	14,647
Cash and cash equivalents at the beginning of the year		728,293	725,403	926,659	1,067,596	648,625	915,246
Cash and cash equivalents at the end of the period	20	884,711	910,614	(110,452)	665,263	1,292,155	(138,974)

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ARBICO PLC

NOTES TO THE FINANCIAL STATEMENTS

1. Corporate information

Arbico Plc is a company incorporated on 18 June 1958 in Nigeria and commenced business thereafter. The company's shares were quoted on the Stock Exchange on November 30, 1978.

Its principal activities comprise construction and civil engineering as well as investment in and operation of infrastructure. The registered office is located at Plot D Block 7 Industrial Crescent Ilupeju, Lagos.

2. Basis of preparation

The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), the provisions of the Financial Reporting Council of Nigeria Act, No. 6 2011, the provision of the Companies and Allied and Matters Act, CAP 20 and the Laws of the Federation of Nigeria 2004 as applicable. The financial statements have been prepared on a historical cost basis, except for land and buildings that have been measured at fair value.

The financial statements are presented in Naira and all values are rounded to the nearest thousand. (₦'000), except when otherwise indicated.

3. Revenue

Construction contracts

The company principally operates fixed price contracts however sometimes the contract cost are varied due to additional works, If the outcome of such a contract can be reliably measured, revenue associated with the construction contract is recognized by reference to the stage of completion of the contract activity at year end (output method e.g. Surveys of Work completed to date) or obligations satisfied. In accordance with IFRS 15 revenue is recognized:

The outcome of a construction contract can be estimated reliably when:

1. The contract obligation has been performed.
2. The work done can been accurately estimated or surveyed.
3. The company's performance does not create an asset with an alternative use to the entity and the company has an enforceable right to payment for performance completed to date.

When the work done does not satisfy these conditions the contact cost to date is the held as a current asset (recoverable cost).

In applying output method, revenue recognized corresponds to the total contract revenue (as defined below) multiplied by the actual completion rate based on survey of work done. Contract revenue not yet billed are recognized and consequently held as contract assets in current assets.

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Contract revenue - Contract revenue corresponds to the initial amount of revenue agreed in the contract and any variations in contract work, claims and incentive payments to the extent that it is probable that they will result in revenue; and they are capable of being reliably measured.

Contract costs - Contract costs include costs that relate directly to the specific contract and costs that are attributable to contract activity in general and can be allocated to the contract. Costs that relate directly to a specific contract comprise; site labor costs (including site supervision); costs of materials used in construction; costs of design, cost of depreciation on plant and machinery and technical assistance that is directly related to the contract.

Company contracts are typically negotiated for the construction of a single asset or a group of assets which are closely interrelated or interdependent in terms of their design, technology and function. In certain circumstances, the percentage of completion method is applied to the separately identifiable components of a single contract or to a group of contracts together in order to reflect the substance of a contract or a group of contracts.

Assets covered by a single contract are treated separately when:

1. The separate proposals have been submitted for each asset.
2. Each asset has been subject to separate negotiation and the contractor and customer have been able to accept or reject that part of the contract relating to each asset.
3. The costs and revenues of each asset can be identified.

Contract cost for which their obligations have not been expressly stated or cannot be reliable measured are held as recoverable cost under current assets.

A group of contracts are treated as a single construction contract when:

1. the group of contracts is negotiated as a single package.
2. the contracts are so closely interrelated that they are, in effect, part of a single project with an overall profit margin.
3. the contracts are performed concurrently or in a continuous sequence

The three criteria must be met before combination can occur.

3. Revenue

Revenue

Profit/Loss Before Tax Earnings per share

THE GROUP	THE COMPANY
2023	2022	2023	2022
SEP	SEP	SEP	SEP
₦'000	₦'000	₦'000	₦'000
4,348,332	6,774,796	4,281,309	6,381,248
(105,245)	72,859	232,162	143,979
(0.69)	0.49	1.56	0.97

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4. Other Income:

	THE GROUP	THE COMPANY
	2023	2022	2023	2022
	SEP	SEP	SEP	SEP
	₦'000	₦'000	₦'000	₦'000
Claims on Insurance	3,202	-	3,202	-
Other Income	27,171	8,037	27,171	7,921
Finance Income	-	-	-	-
	30,375	8,037	30,375	7,921

5. Staff cost & Employees Benefit

	THE GROUP		THE COMPANY
	2023		2022	2023	2022
	SEP		SEP	SEP	SEP
	₦'000		₦'000	₦'000	₦'000
Salaries & Wages	99,506		122,235	128,832	89,994
Staff Welfare	1,897		12,651	6,302	12,531
Staff Medical	16,832		24,809	16,503	24,809
Labour	152,341		42,308	19,353	40,188
	256,115		202,003	170,990	167,522

6. Plant Property & Equipment

There are no restrictions on title to the items of property, plant and equipment. The Company has not pledged any item of property, plant and equipment as security for liabilities. The fair value of the company's buildings is in line with the carrying amount. However, revaluation of the buildings is done at management discretion.

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