C & I Leasing recorded a turnover of N6.8 billion from its activities including those of its subsidiaries the year ended January 2009 compared to N2.6 billion in the corresponding period of last year, representing an increase of about 161.5 per cent.

The company on its own however to rise in revenue form its own however, posted a turnover of N4.7 billion compared with N2.4 billion the previous period.

It attributed the growth in turnover to rise in revenue from its outsourcing and car rental services increased volume of finance lease transactions and the consolidation of C & I Motors Limited results.

The group also made capital investment amounting to N2.1 billion, due to the need to enlarge its assets generating income and assuring that it would start reaping the  benefits soon.

Its total asset likewise rose by 55 per cent from N6.7 billion to N10.4 billion, while that of the company increased by 43 per cent from N5.1 billion with the performance linked to the impact of consideration of the accounts of Leasefric, Ghana, C & I Motors Limited and the growth of the income generating assets.

The group’ss gross profit also increased by 57 per cent to N1.8 billion  from N1.1 billion, but its gross margin ratio reduced to27 per cent from 44 per cent over the period.

The reduction was attributed  to increase direct cost and particularly  interest expense which is said to have continued to rise from June 2008 till the end of the period under review.

AMU Abdul Bello rtd, the company’s chairman, who made the clarifications at its Annual General Meeting (AGM) in Lagos, recently, said that for the year ended, the board of directors recommended a final dividend payment of 12 kobo per share, while it looks forward to higher dividends.

According to  him, during the year, the company incorporated an additional subsidiary, called Critans Global Limited to operate a modern taxi service in Lagos from May 2009, adding that, its existence would contribute to the group’s profit by the end of the next financial year.

According to him, the company has envisaged the impact of the economic downturn on its operations and has thus taken measures to minimize the effects for the benefits of its investors.

The chairman stated that this made it to jettison its plan to raise additional equity by public issue but had plans in place to issue a convertible bond of about 2 billion, adding that, it would complete the exercise soon.

He revealed that the proceeds would beutilised to finance business expansion and provide additional working capital, saying the state of the capital market and investors perceived attitude made it to drop the earlier plan of public offer.