TRANS NATIONWIDE EXPRESS : QUARTER 3 - FINANCIAL STATEMENT FOR 2023

UNAUDITED FINANCIAL STATEMENT

FOR THE PERIOD ENDED SEPTEMBER 30, 2023

TRANS-NATIONWIDE EXPRESS PLC

PERIOD ENDED SEPTEMBER 30 2023

TABLE OF CONTENTS

CONTENTS	PAGE
Statement of Accounting Policies	3	- 5
Statement of comprehensive income	6
Statement of financial position	7
Statement of changes in equity	8
Statement of cash flow	9
Notes to the financial statements	10 - 17

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TRANS-NATIONWIDE EXPRESS PLC

PERIOD ENDED SEPTEMBER 30, 2023

STATEMENT OF ACCOUNTING POLICIES

Nature of operations and general information

Brief history

The company was incorporated as TNT SKYPAK NIGERIA LIMITED on 28th March, 1984 as a private limited liability company and on 6th

September, 1992, the company's name was changed to Trans-Nationwide Express Plc as a Public Limited Liability Company.

Statement of compliance with IFRS

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standard Board (IASB).

Accounting policies

The principal accounting policies applied in the presentation of the financial statements are set out below:

a) Basis of preparation

The financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), its interpretations adopted by International Accounting Standard Board (IASB).

b) Principal business activities

The company provides courier services, freight services, logistics, mail room management, haulage and e-commerce from its

Headquarters in Lagos and 38 branches.

c) Presentation of financial statements in accordance with IAS 1

The company has elected to present the statement of the comprehensive income only whilst incorporating items of income statement therein.

KEY MANAGEMENT ASSUMPTIONS

In preparing the financial statements, estimates and assumptions are made that could affect the reported amounts of assets and liabilities within the next financial year. Estimates and judgments are continually evaluated and are based on factors such as historical experience and current best estimates of uncertain future events that are believed to be reasonable under the circumstances. No material changes to assumptions have occurred during the year.

Foreign currency transactions have been translated into the functional currency of the company using the exchange rate prevailing at the date of the transactions (spot exchange rate). Foreign exchange gain or loss arising from the settlement of such transactions and from translation at year end exchange rates of monetary assets and liabilities denomination in foreign currencies are recognized in statement of profit or loss.

1. Revenue recognition

Revenue represents the fair value of consideration received or receivable for sales of goods and services in the ordinary course of the company's activities and is stated net of Value Added Tax (VAT), rebates and discounts. The company recognizes revenue when the amount of revenue can be reliably measured; it is probable that future benefits will flow to the entity. Dividends are recognized as income in the period in which the right to receive payment is established.

ii) Property, plant and equipment

All categories of property, plant and equipment are initially recorded at cost. Buildings and freehold land are subsequently shown at fair value, based on periodic valuations by external independent valuers, less subsequent depreciation for buildings. Valuations are performed with sufficient regularity to ensure that the fair value of a revalued asset does not differ materially from its carrying amount. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset, and the net amount is restated to the revalued amount of the asset. All other property, plant and equipment are stated at historical cost less depreciation.

Historical cost includes expenditure that is directly attributable to the acquisition of the items. Costs may also include transfers from equity of any gains or losses on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. only when it is probable that future economic benefits associated with the item will flow to the company andcost can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the statement of profit or loss during the financial period in which they are incurred. Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate,

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TRANS-NATIONWIDE EXPRESS PLC

PERIOD ENDED SEPTEMBER 30, 2023

STATEMENT OF ACCOUNTING POLICIES

Increases in the carrying amount arising on revaluation are credited to other comprehensive income and shown as other reserve in equity. Decreases that offset previous increases of the same assets are charged against the revaluation surplus; all other decreases are charged to profit or loss.

iii) Investment properties.

Investment properties are properties held for capital appreciation or to earn rentals or both. Investment properties are measured at fair value with all changes in fair value recognized in profit or loss. The fair value is determined at the reporting date by an independent valuator based on market evidence of the most recent prices achieved in arm's length transactions of similar properties in the same area.

iv) Depreciation

Depreciation on other assets is calculated using straight - line method to allocate their cost or revalued amounts to their residual values over the estimated useful lives, as follows:

- Buildings	2%
- Plant & machinery	12.50%
- Motor vehicles	25%
- Computer equipment	25%
- Furniture & fittings	12.50%
- Office equipment	12.50%
- Motorcycles	50%

The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. This was hinged on the premise that motorcycles get worn-out faster than motor vehicle thereby necessitating the change. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within 'gain or losses 'in other comprehensive income. When revalued assets are sold, the amounts included in revaluation reserves are transferred to retained earnings.

1. Intangible Assets Computer Software
   Acquired computer licences are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortized on a straight line basis over their estimated useful lives (three to five years). The amortization period is reviewed at each reporting date.
2. Financial instruments

Financial Assets

The company classifies its assets in the following categories: financial assets at fair value through profit or loss, loans and receivable and available- for- sale financial assets. The classification depends on the purpose for which the investments were acquired. Management determines classification of its financial assets at initial recognition.

Financial asset fair value through profit or loss

This category has two sub-categories: financial assets held for trading and those designated at fair value through profit or loss at inception. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by the directors.

Derivatives are also classified as held for trading. Assets in this category are classified as current asset if either held for trading or are expected to be realized within 12 months of the reporting dates. Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. The company does not apply hedge accounting.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in active market. They arise when the company provides money, goods or services directly to a debtor with no intention of trading the receivables. They are included in current assets, except for maturity greater than 12 months after the reporting dates. These are classified as non-current assets. The company's loans and receivables comprise of Non-receivables; Trade and other receivables and Cash and cash equivalents.

Available- for- sale financial assets

Available for sale financial assets are non-derivatives that are either designated in this category or not classified in any other categories.

They are included in non-current assets unless directors intend to dispose of the investment within 12 months of the reporting date.

Recognition and Measurement

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TRANS-NATIONWIDE EXPRESS PLC

PERIOD ENDED SEPTEMBER 30, 2023

STATEMENT OF ACCOUNTING POLICIES

Purchases and sales of investments are recognized on the trade date, which is the date the company commits to purchase or sell the asset. Financial assets are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Investments are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and the company has transferred substantially all risks and rewards of ownership. Available- for- sale financial assets and financial assets through profit or loss are subsequently carried at fair value. Loans and receivables held-to-maturity investments are carried at amortized cost using the effective interest method.

Realized and unrealized gains or losses arising from the changes in fair value of the financial assets at fair value through profit or loss category are included in profit or loss in the period which they arise. Unrealized gains or losses arising from the changes in fair value of equity instruments classified as available-for-sale are recognized in the comprehensive income. When securities classified as available- for- sale are sold or impaired, the accumulated fair value adjustments are included in the profit or loss as gains and losses from investment securities.

The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active (and for unlisted securities), the company establishes fair value by using valuation techniques. These include the recent use of arms length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis and option pricing models refined to reflect the issuer's specific circumstances.

The company assesses at each reporting date whether there is objective evidence that a financial asset or group of financial assets is impaired. In the case of equity securities classified as available -for-sale, a significant or prolonged decline in fair value of the security below its cost is considered in determining whether the securities are impaired. The company assesses the significance of a decline in the fair value below cost relative to the specific security's volatility, and regards a decline below cost of longer than 12 months to be prolonged. If any such evidence exists for available-for-sale financial assets, the cumulative loss - measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognized in profit or loss - is removed from equity and recognized in profit or loss. Impairment losses recognized in the profit or loss on equity instruments are not reversed through the profit or loss.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the statement of financial position, when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

vii) Leases

The Company acquired some properties, plant and equipment on a finance lease. The interest on lease is recognized as an expense under finance cost and charged to statement of comprehensive income.

viii) Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is determined by the weighted average method. Net realizable

value is the estimate of the selling price in the ordinary course of business, less cost of completion and selling expenses.

ix) Receivables

Receivables are recognized initially at fair value and subsequently measured at amortized cost using effective interest method less provision for impairment. A provision for impairment of receivables is established when there is objective evidence that the company will not be able to collect the entire amount due according to the original terms of receivables. Significant financial difficulties of the debtors, probability that debtor will enter bankruptcy and default or delay payment (more than 30 days overdue), are the indicators that trade receivable is impaired. The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognized in the profit or loss within administrative cost. When trade receivable is uncollectible, it is written against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited against administrative costs in the profit or loss.

The amount of the provision is the difference between the carrying amount and the present value of the future estimate cash flows, discounted at the original effective discount rate.

x) Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposit held at call with banks, other short term highly liquid investments with original maturity of three months or less, and bank overdrafts.

xi) Employee benefits

1. Retirement benefit obligations

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TRANS-NATIONWIDE EXPRESS PLC

PERIOD ENDED SEPTEMBER 30, 2023

STATEMENT OF ACCOUNTING POLICIES

The company operates a retirement benefits scheme for its employees in accordance with the provision of the Pension Reforms Act of 2014 as ammended. The Scheme is funded through monthly contribution of 10% and 8% by both the company and the employees respectively. These contributions are recognized in the statement of comprehensive income.

xii) Provisions

A provision is recognized only if, as a result of past event, the company has a present legal or constructive obligation that can be reliably

estimated, and it is probable that a transfer of economic benefits will be required to settle the obligation.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at reporting date.

xiii) Current and deferred income tax

Income tax expense is the aggregate of the charge to profit or loss in respect of current and deferred income tax. Current income tax is

the amount of income tax payable of taxable profit for the year determined in accordance with the relevant tax legislation.

Education tax is provided at 2% of assessable profits of companies operating within Nigeria. Deferred Income tax is provided in full, using liability method, on all temporary differences arising between the tax bases of assets and liabilities and their carrying values for financial reporting purposes. Current and deferred income tax is determined using tax rates and laws enacted or substantively enacted at the reporting date and are expected to apply when the related deferred income tax liability is settled. Deferred income tax assets are recognized only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilized.

xiv) Borrowings

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of of the liability for 12 months after the reporting date.

Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost using the effective interest method; any differences between proceeds (net of transaction costs) and the redemption value is recognized in the profit or loss over the period of the borrowings, using the effective interest rate method.

Borrowing costs

Borrowing cost are recognized as expense in the period in which they are incurred, except when they are directly attributable to the acquisition, construction or production of qualifying asset, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale.

xv) Dividend

Dividends payable to the company's shareholders are recognized as a liability in the period in which they are declared and approved by the shareholders.

Securities Trading Policy

Nationwide Express Plc maintains a Security Trading Policy which guides Directors, Audit Committee members, employees and all individuals categorized as insiders as to their dealing in the Company's securities. The Policy is periodically reviewed by the Board and updated. The Company has made specific inquiries of all its directors and other insiders and is not aware of any infringement of the policy during the period under review.

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TRANS-NATIONWIDE EXPRESS PLC

PERIOD ENDED SEPTEMBER 30, 2023

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

		FOR THE PERIOD OF	FOR THE PERIOD	FOR THE PERIOD
	NOTES	JULY TO SEPTEMBER	ENDED SEPTEMBER	ENDED SEPTEMBER
		2023	2023	2022
		N'000	N'000	N'000
Revenue	1	140,366	425,294	552,224
Direct Cost	2	(39,512)	(168,296)	(257,361)
Gross Profit		100,854	256,997	294,863
Other Income	3	17,221	80,890	35,953
Administrative Expenses	4	(100,304)	(290,770)	(284,973)
Financial Cost	5	(288)	(821)	(610)
Profit before taxation		17,483	46,296	45,233
Income tax expenses		(5,595)	(14,815)	(14,475)
Profit / (Loss)		11,889	31,481	30,758
Earnings per Share - Basic		0.03	0.07	0.07

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TRANS-NATIONWIDE EXPRESS PLC

PERIOD ENDED SEPTEMBER 30, 2023

	STATEMENT OF FINANCIAL POSITION
		FOR THE PERIOD OF	FOR THE PERIOD OF	FOR THE PERIOD
	NOTES	JULY TO SEPTEMBER	DECEMBER	ENDED SEPTEMBER
		2023	2022	2022
ASSETS:		N'000	N'000	N'000
Property, Plant & Equipment	6	219,082	236,166	238,470
Intangible Assets		16,181	13,401	18,126
investments		-	-	1,153
Equity Instrument at fair value	7	4,287	4,285	4,288
Financial Assets at amortised cost	7.1	42,964	26,118	-
Deferred Tax Assets	6(i)	10,264	10,264	22,059
Total non-current assets		292,778	290,234	284,096
Current assets
Inventories	8	4,793	3,802	3,193
Trade receivables	9	197,332	179,118	190,678
Other Assets	10	217,799	180,174	212,229
Cash & cash Equivalent	11	73,370	43,698	23,291
Total current assets		493,294	406,792	429,391
Total assets
	786,072	697,026	713,487
EQUITY AND LIABILITIES
Share capital	12	249,075	249,075	234,424
Share premium	14	71,262	71,261	71,262
General Reserve	13	87,611	65,507	85,700
Total equity attributable to ownersof		-	-	-
the Company		407,948	385,843	391,386
Non-current liabilities
Directors current Account/Deferred		-		-
Tax Liabilities
Total non-current liabilities		-	-	-
CURRENT LIABILITIES
Trade & other payables	17	343,444	285,494	271,616
Income Tax Payable	16	19,865	25,689	-
Current tax liabilities	18	14,815	-	50,485
Total current liabilities		378,124	311,183	322,101
Total liabilities		378,124	311,183	322,101
Current tax liabilities
Total equity and liabilities		786,072	697,026	713,487
		(0)	0	-

20/10/2023	20/10/2023
VINCENT IHEMENWA	ERIC EMECHETA
FRC/2013/ICAN/00000003087	FRC/2023/PRO/DIR/003/739130
AG. HEAD OF FINANCE	MANAGING DIRECTOR

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TRANS-NATIONWIDE EXPRESS PLC

PERIOD ENDED SEPTEMBER 30, 2023

STATEMENT OF CHANGES IN EQUITY

	PERIOD	PERIOD	PERIOD	PERIOD	PERIOD	PERIOD	PERIOD
	ENDED	ENDED	ENDED	ENDED	ENDED	ENDED	ENDED	PERIOD ENDED
	SEPTEMBER	SEPTEMBER	SEPTEMBER	SEPTEMBER	SEPTEMBER	SEPTEMBER	SEPTEMBER	SEPTEMBER
	2023	2023	2023	2023	2022	2022	2022	2022
		Share	Retained			Share	Retained
	Share Capital	Premium	Earnings	Total	Share Capital	Premium	Earnings	Total
	N'000	N'000	N'000	N'000	N'000	N'000	N'000	N'000
Balance as at JANUARY 1ST
2023	249,075	71,262	65,507	385,844	234,424	71,261	54,942	360,627
Profit for the year			31,481	31,481			-	-
General Reserve				-		-	-	-
Prior year adjustment		-	-	-			-	-
Dividend paid			(9,377)	(9,377)			-	-
Tax Audit Liability			-	-			-	-
Balance as at SEPT 30, 2022	249,075	71,262	87,611	407,948	234,424	71,261	54,942	360,627

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TRANS-NATIONWIDE EXPRESS PLC

PERIOD ENDED SEPTEMBER 30, 2023

STATEMENT OF CASH FLOWS
		Sep-23			Sep-22
		N'000	N'000	N'000	N'000
Cash flows from operating activities
Cash received from customers	440,495					552,224
Cash payments to suppliers & employees		(412,648)				(551,886)
Cash generated from operations	27,846					338
Taxation paid	(5,824)				-
					22,022					338
Cashflows from investing activities
Purchase of property, plant & equipment	(4,973)				(47,848)
Insurance claim	351					-
loss on investment valuation (financial assets)	-					-
Dividend income	36					-
Interest income	1					-
Exchange rate gain	16,817					35,026
Contract registration	15					-
Proceed from assets disposal	4,779					-
		17,027					(12,822)
Cashflows from investing activities
Rights Issue net proceed	-					-
interest received	-					-
Net cash outflow from investing activities				17,027					(12,822)
Cash flows from financing activities
Dividend paid	(9,377)				-
Net cash outflow from financing activities				(9,377)					-
Net increase / (decrease) in cash & cash
equivalents				29,672					(12,484)
Cash & cash equivalent at January 1,				43,698					35,777
Cash & cash equivalent as at SEPTEMBER 30,
2022					73,370					23,291
					(0)					-

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