By Alex C
Nigeria Ropes recorded an impressive top-line performance in the first three months of 2014, with revenue surging by 69.63 percent year-on-year to N99.54 million from N58.68 same period in the prior year (Q1 2013).
Despite huge operating costs which made the company unable to translate top-line performance to bottom-line growth, Nigeria Ropes is buoyed by focus strategy and resilient market penetration on the part of management.
The company was able to reduce cost-of-sales margin to 64.26 percent in 2014, from 78.78 percent in 2013, while gross margin increased to 35.72 percent in 2014, as against 21.39 percent in 2013. The firm also created an inspection and specification department for its lifting equipment. The new department contributed over 70 percent to 2014 revenue.
Total assets in the review period fell slightly by 1.81 percent to N723.71 million compared with N737.08 million as of Q1 2013. Also, finance costs rose by 116.1 percent to N17.2 million in Q1 2014, compared with N7.95 million as of Q1 2013.
The company is in co-operation with other certified local manufacturers constantly reviewing local raw material development, in line with Federal Government’s reform programme in promoting indigenous manufacturers.
In order to put the company on a growth trajectory, and place it on a global competitive arena, the company has embarked on an aggressive expansion into the Ghana market with a view to forming a joint venture.
Nigeria Ropes plc was incorporated in Nigeria in March 1960, as an associate member of BRIDON plc, a world leader in the manufacturing of ropes and cordage technology. The company has a product liability cover of over 80 million, which is yet to be matched by any local competitor.