PRESCO PLC.

Condensed interim Financial Statements

For the nine months ended 30 September, 2023

Presco Plc

Obaretin Estate

Km 22 Benin / Sapele Road

PO Box 7061

Benin City, Edo State, Nigeria

Tel: +234 8034134444

E-mail:info.presco@siat-group.com

www.presco-plc.com

PRESCO PLC

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2023

Certification Pursuant to Section 60 (2) of Investment and Securities Act No. 29 of 2011

We the undersigned hereby certify the following with regards to our financial reports for the nine months ended 30 September, 2023 that;

  1. We have reviewed the report;
  2. To the best of our knowledge, the report does not contain:
    1. Any untrue statement of materials effect, or
    2. Omit to state a material fact, which would make the statements misleading in the light of the circumstances under which such statements were made;
  4. To the best of our knowledge, the financial statements and other financial information included in the report fairly present in all material respects the financial condition and results of operations of the Company as of, and for the period presented in the report.
  5. We:
    1. Are responsible for establishing and maintaining internal controls;
    2. Have designed such internal controls to ensure that material information relating to the
      Company is made known to such officers by others within entities particularly during the period in which the periodic reports are being prepared;
    3. Have evaluated the effectiveness of the Company's internal controls as of date within 90 days prior to the report;
    4. Have presented in our report our conclusions about the effectiveness of the company's internal controls based on our evaluation as of that date;
  7. We are not aware of and have disclosed as such to the Auditors and the Audit Committee:
    1. Significant deficiencies in the design and 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 auditors any material weakness in internal controls; and
    2. Any fraud, whether or not material, that involves management or other employees who have significant role in the company's internal controls;
  9. 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 weakness.

Felix O. Nwabuko

William Kenneth Crockett

Managing Director

Chief Financial Officer

FRC/2016/ICAN/00000014276

FRC/2019/ICAN/00000019300

PRESCO PLC

CONSOLIDATED AND SEPARATE STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2023

Group

Company

Note

30-Sep-23

30-Sep-22

01/07/2023

01/07/2022

30-Sep-23

30-Sep-22

01/07/2023

01/07/2022

30/09/2023

30/09/2022

30/09/2023

30/09/2022

N'000

N'000

N'000

N'000

N'000

N'000

N'000

N'000

Revenue

76,866,955

59,207,743

28,794,867

17,497,947

60,375,087

51,257,090

21,472,191

17,052,696

Cost of sales

(27,931,596)

(20,567,237)

(11,747,855)

(9,095,129)

(18,232,775)

(17,370,568)

(7,166,816)

(9,318,052)

Gross profit

48,935,360

38,640,507

17,047,013

8,402,819

42,142,312

33,886,522

14,305,375

7,734,644

Administrative expenses

(14,947,156)

(10,750,701)

(5,238,153)

(3,593,580)

(10,778,604)

(8,261,613)

(3,714,507)

(2,822,654)

Selling and distribution expenses

(1,083,255)

(1,242,730)

(418,038)

(692,340)

(862,691)

(1,051,807)

(337,753)

(538,650)

Other gains and losses

(280,053)

(149,426)

(267,823)

(73,310)

(280,872)

(67,797)

(267,937)

8,319

Other operating (losses)/income

1,252,139

788,254

685,385

399,793

669,071

589,150

227,289

341,414

Exchange loss/(gain)

3,886,647

-

1,031,528

1,153,340

5,912,014

-

2,394,110

1,258,036

Gains on biological asset revaluation

-

-

-

-

-

-

Operating profit before finance cost and

37,763,682

27,285,903

12,839,912

5,596,721

36,801,230

25,094,455

12,606,577

5,981,109

finance income

Finance cost

(6,070,285)

(5,973,913)

(2,012,949)

(2,103,777)

(4,034,185)

(3,484,584)

(1,430,143)

(1,284,012)

Finance income

29,594

350

20,974

0

29,594

350

20,974

0

Profit before tax

31,722,991

21,312,340

10,847,937

3,492,945

32,796,638

21,610,221

11,197,407

4,697,097

Tax expense

(8,250,395)

(5,434,357)

(2,448,514)

(1,089,779)

(8,250,395)

(5,434,357)

(2,448,514)

(1,089,779)

Profit for the period

23,472,595

15,877,983

8,399,422

2,403,166

24,546,243

16,175,864

8,748,893

3,607,318

Other Comprehensive Income (OCI) Item(s) that will not be reclassified subsequently to profit or loss

Remeasurement of defined benefit obligation

Actuarial loss/(gain) on long service award

Income tax relating to components of OCI (-)

Other comprehensive income, net of tax

Total comprehensive income for the year

Earnings Per Share

Basic (Kobo)

Diluted (Kobo)

-

-

-

-

-

-

-

-

-

-

-

-

0

0

-

-

-

-

23,472,595

15,877,983

8,399,422

2,403,166

24,546,243

16,175,864

8,748,893

3,607,318

2,347

1,588

840

240

2,455

1,618

875

361

2,347

1,588

840

240

2,455

1,618

875

361

The accompanying notes form an integral part of these financial statements.

PRESCO PLC

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

Assets:

Non-current assets

Intangible assets

Property, plant and equipment Right-of-use assets Investment in subsidiaries

Total non-current assets

Current assets Inventories Biological assets

Trade and other receivables Cash and bank balances

Total current assets

Total assets

Equity and Liabilities Equity

Group

Company

30-Sep-23

31-Dec-22

30-Sep-23

31-Dec-22

Note

N'000

N'000

N'000

N'000

95,650

118,907

13,442

14,702

97,289,154

92,652,564

62,371,560

59,759,754

2,856,217

3,890,117

1,577,675

1,577,676

-

-

23,000,000

23,000,000

100,241,021

96,661,588

86,962,676

84,352,131

10,617,349

4,127,736

6,263,503

3,431,768

14,341,283

14,341,283

11,102,588

11,102,588

15,105,882

7,134,163

16,327,858

12,793,978

18,899,020

10,104,678

16,492,868

8,733,450

58,963,534

35,707,860

50,186,817

36,061,784

159,204,555

132,369,447

137,149,493

120,413,917

Share capital

500,000

500,000

500,000

500,000

Share premium

1,173,528

1,173,528

1,173,528

1,173,528

Other reserves

56,311

56,311

(80,952)

(80,952)

Acquisition premium on SNL

- 17,848,831

- 17,848,831

-

-

Retained earnings

66,952,153

50,279,557

68,362,303

50,616,060

Total Equity

50,833,161

34,160,565

69,954,879

52,208,636

Non-current liabilities

Borrowings

56,433,612

57,853,315

39,201,257

41,886,455

Deferred benefit obligations

2,013,196

1,351,271

1,748,434

1,086,509

Deferred tax liabilities

8,188,557

7,312,881

8,188,557

7,246,792

Deferred income

412,254

412,254

412,254

412,254

Lease liabilities

788,556

2,488,220

202,066

178,778

Total Non-current liabilities

67,836,174

69,417,941

49,752,568

50,810,788

Current liabilities

Trade and other payables

25,180,204

12,009,025

4,253,406

4,674,382

Current tax liabilities

12,062,721

10,525,095

12,062,722

10,488,220

Bank overdraft

343,871

2,235,756

-

29,145

Borrowings

2,540,920

3,589,924

753,299

1,806,840

Deferred income

369,586

369,936

354,655

354,655

Lease liabilities

37,918

61,206

17,963

41,251

Total current liabilities

40,535,221

28,790,942

17,442,046

17,394,493

Total liabilities

108,371,395

98,208,883

67,194,614

68,205,281

Total equity and liabilities

159,204,555

132,369,448

137,149,493

120,413,917

The financial statements were approved and authorised for issue by the Board of Directors on 25 October 2023 and were signed on its behalf by:

Felix Nwabuko

William Kenneth Crockett

Managing Director

Chief Financial Officer

FRC/2016/ICAN/00000014276

FRC/2019/ICAN/00000019300

The accompanying notes form an integral part of these financial statements.

PRESCO PLC

CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2023

Group

Share

Share

Retained

Other

Total

Capital

Premium

Earnings

Reserves

N'000

N'000

N'000

N'000

N'000

Balance at 1 January, 2022

500,000

1,173,528

45,843,042

(17,735,287)

29,781,283

Profit for the year

-

-

13,474,819

-

13,474,819

Net remeasurement gain on defined benefit plan

-

-

-

-

-

Total Comprehensive Income

-

-

13,474,819

-

13,474,819

Other reserves from consolidation

-

-

-

Status bar dividend

-

-

Dividend paid

-

-

-

-

-

Balance at 30 September 2022

500,000

1,173,528

59,317,861

#######

43,256,102

-

-

-

-

-

Balance at 1 January 2023

500,000

1,173,528

50,279,557

(17,792,520)

34,160,565

Profit for the year

-

-

23,472,595

-

23,472,595

Net remeasurement loss on defined benefit plan

-

-

-

-

-

Total Comprehensive Income

-

-

23,472,595

-

23,472,595

Dividend paid

-

-

(6,800,000)

-

(6,800,000)

Balance at 30 September, 2023

500,000

1,173,528

66,952,153

#######

50,833,160

Company

Share

Share

Retained

Other

Total

Capital

Premium

Earnings

Reserves

N'000

N'000

N'000

N'000

N'000

Balance at 1 January, 2022

500,000

1,173,528

46,344,585

5,375

48,023,488

Profit for the year

-

-

16,175,864

-

16,175,864

Net remeasurement gain on defined benefit plan

-

-

-

-

-

Total Comprehensive Income

-

-

16,175,864

-

16,175,864

Status bar dividend

-

-

-

-

-

Dividend paid

-

-

-

-

-

Balance at 30 September 2022

500,000

1,173,528

62,520,449

5,375

64,199,352

-

-

-

-

-

Balance at 1 January 2023

500,000

1,173,528

50,616,060

(80,952)

52,208,636

Profit for the year

-

-

24,546,243

-

24,546,243

Net remeasurement loss on defined benefit plan

-

-

-

-

-

Total Comprehensive Income

-

-

24,546,243

-

24,546,243

Dividend paid

-

-

(6,800,000)

-

(6,800,000)

Balance at 30 September, 2023

500,000

1,173,528

68,362,303

(80,952)

69,954,879

The accompanying notes form an integral part of these financial statements.

PRESCO PLC

CONSOLIDATED AND SEPARATE STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2023

Group

Company

30-Sep-23

30-Sep-22

30-Sep-23

30-Sep-22

N'000

N'000

N'000

N'000

Cash flows from operating activities

Profit for the year

23,472,595

15,877,984

24,546,243

16,175,864

Adjustments for:

- Loss on sale of property plant and equipment

-

- Gain on disposal of palm seedlings

-

- Loss on sales of palm seedlings

-

78,007

-

78,007

- Tax expense

8,250,395

5,434,357

8,250,395

5,434,357

- (Gain)/Loss on biological asset valuation

-

- Depreciation of property plant and equipment

2,954,199

2,800,762

2,184,649

2,063,610

- Depreciation of Right-of-use assets

-

- Amortization of intangible assets

23,256

23,097

1,260

1,287

- Recognition of government grant on additional loan

-

- Finance cost

6,070,285

5,973,913

4,034,185

3,484,584

- Finance income

(29,594)

(350)

(29,594)

(350)

- Service cost

-

- Actuarial loss on long service award

-

- Expected Credit Loss Allowance

-

40,741,136

30,187,770

38,987,139

27,237,359

Movement in working capital:

- (Increase) in trade and other receivable

(7,971,719)

(3,778,658)

(3,533,880)

(4,756,307)

- (Increase)/decrease in inventories

(6,489,614)

(5,314,945)

(2,831,735)

(3,707,685)

- Increase in trade and other payable

13,171,179

(16,605,805)

(420,976)

(21,595,698)

- Increase in deferred income from advances from cu

(620,973)

(620,973)

-

- Strategic spares transferred into inventory

-

Cash generated from operating activities

38,830,010

4,488,361

31,579,575

(2,822,331)

-Benefits paid

661,925

128,337

661,925

128,337

-Tax paid

(5,775,694)

(3,740,525)

(5,775,694)

(3,740,525)

Net cash generated from operating activities

26,465,806

(6,434,520)

33,716,241

876,172

Cash flows from investing activities

Acquisition of Property, plant and equipment

(4,638,078)

(7,595,579)

(2,613,294)

(5,094,340)

Acquisition of Intangibles

0

-

Decrease in right of use assets

1,033,899

1,949,992

Proceeds from sale of property, plant and equipment

-

Proceeds from sale of palm seedling

-

Net cash used in investing activities

(3,604,178)

(5,645,587)

(2,613,294)

(5,094,340)

Cash flows from financing activities

Interest paid

(6,070,285)

(5,973,913)

(4,034,185)

(3,484,584)

Loan received during the year

4,335,725

38,790,990

1,100,000

36,600,014

Repayment during the year

(4,063,188)

(28,556,155)

(370,006)

(25,936,441)

Dividends paid

(6,800,000)

(6,600,000)

(6,800,000)

(6,600,000)

Unclaimed dividend received from Registrars

(47,743)

(47,743)

-

Repayment of lease liabilities

-

-

Effect of movements in exchange rates on cash held

(6,780,345)

(5,912,014)

-

Net cash used in financing activities

(19,425,835)

(2,339,077)

(16,063,949)

578,988

NET INCREASE/(DECREASE) IN CASH AND CAS

10,686,227

(7,108,492)

7,788,563

(10,949,872)

CASH AND CASH EQUIVALENT AT BEGINNING O

7,868,922

16,709,338

8,704,305

20,308,716

CASH AND CASH EQUIVALENT AT END OF YEAR

18,555,149

9,600,846

16,492,868

9,358,844

PRESCO PLC Financial Statements for the nine months ended 30 September 2023

NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS FOR THE 3RD QUARTER 2023

1. General Corporate Information

Presco Plc was incorporated in Nigeria on 24th September, 1991 as Presco Industries Limited, a private limited liability company under the Companies and Allied Matters Act, and became a public limited liability Company in February, 2002. Presco Plc's shares afrfe actively traded on The Nigerian Stock Exchange with the Siat Group holding 60% while the Nigeria Public holds 40%.

Presco is a fully integrated agro-industrial establishment with oil palm plantations, palm oil mill, palm kernel crushing plant and vegetable oil refining plant. Presently, the only one of such in Nigeria.

Presco specializes in the cultivation of oil palm and in the extraction, refining and fractionation of crude palm oil into finished products.

Presco supplies specialty fats and oils of outstanding quality to customers' specification and assures a reliability of supply of its products all year round. This is made possible by the integrated nature of the company's production process.

The company operates from four estates: Obaretin Estate, Ologbo Estate and Sakpomba Estate in Edo State and Cowan Estate in Delta State.

The address of the Company's registered office is Obaretin Estate, Km 22 Benin/Sapele Road, Benin City.

2. Significant accounting policies

The Group financial statements for the period ended 30 September 2023 have been prepared in accordance with International Financial Reportin Standards ("IFRS") and interpretations issued by the IFRS Interpretation Committee (IFRIC) applicable to companies reportin under IFRS and the requirements of the Companies and Allied Matters Act CAP C.20 Laws of the Federation of Nieria, 2004 and the Financial Reportin Council of Nigeria Act, 2011.

Presco Plc Group has consistently applied the same accountin policies and methods of computation in its interim condensed consolidated and separate financial statements as in its annual financial statements. There were no new standards, interpretations and amendments, effective for the first time from 1st January 2023 which had a material effect on these financial statements.

2.1 Basis of preparation i) Compliance with IFRS

The interim condensed consolidated and separate financial statements have been prepared in accordance with IAS 34 Interim Financial Reportin and under the historical cost convention, except for the revaluation of biological assets. They do not include all disclosures that would otherwise be required in a complete set of financial statements and should be read in conjunction with the 2022 annual report. The financial statements were prepared on a GoinG concern basis.

ii). Basis of consolidation

The Group condensed financial statements incorporates the financial statements of the Company and its subsidiary made up to 30 September 2023. Control is achieved where the investor; (i) has power over the investee entity (ii) is exposed, or has rights, to variable returns from the investee entity as a result of its involvement, and (iii) can exercise some power over the investee to affect its returns.

ii). Basis of measurement

The financial statements have been prepared in accordance with the going concern assumptions under the historical cost concepts except for the revaluation of biological assets.

The historical financial information is presented in Naira and all values are rounded to the nearest thousand (N'000), except where otherwise indicated. The accounting policies are applicable to both the Company and Group.

3 Revenue

Disaggregration of revenue

Revenue from contract with customers -Salesof crude and refined products

-Millby-products

Geographical market

Group

Company

Nine months ended 30 September

Nine months ended 30 September

2023

2022

2023

2022

N'000

N'000

N'000

N'000

76,841,099

59,204,153

60,349,231

51,253,500

25,856

3,590

25,856

3,590

76,866,955

59,207,743

60,375,087

51,257,090

-Nigeria (place of domicile)

76,866,955

59,207,743

60,375,087

51,257,090

Timing of revenue recognition

-At a point in time

76,866,955

59,207,743

60,375,087

51,257,090

-Over time

76,866,955

59,207,743

60,375,087

51,257,090

  1. Seasonality of operations
    The Company has increased its production to build up its inventory to meet the demand of customers for the next months in the year, in case of any observance of lean season.
  2. Unusual items
    There were no unusual items as at the end of September 2023 (September 2022: Nil)
  3. Income tax

Group

Company

Nine months ended 30 September

Nine months ended 30 September

2023

2022

2023

2022

N'000

N'000

N'000

N'000

Current Income tax

6,039,875

4,270,976

6,039,875

4,270,976

Education tax

1,310,320

948,381

1,310,320

948,381

7,350,195

5,219,357

7,350,195

5,219,357

Deferred tax

900,200

215,000

900,200

215,000

8,250,395

5,434,357

8,250,395

5,434,357

Tax expense is recognised based upon pre-tax income of the interim reporting period.

7 EARNING PER SHARE

Basic earnins per share is derived by dividin profit or loss attributable to the ordinary equity holders by weihted averae number of ordinary shares outstandin durin the period.

Net profit attributable to equity holders of the Company Effect of dilutive potential ordinary shares:

Weighted average number of shares (000)

Basic and diluted earnins per share (Naira)

Group

Company

Nine months ended 30 September

Nine months ended 30 September

2023

2022

2023

2022

N'000

N'000

N'000

N'000

23,472,595

15,877,983

24,546,243

16,175,864

-

-

23,472,595

15,877,983

24,546,243

16,175,864

1,000,000

1,000,000

1,000,000

1,000,000

23.47

15.88

24.55

16.18

8 PROPERTIES PLANT AND EQUIPMENTS

  1. During the six months ended 30 September 2023, the Group acquired items of plant, equipments and plantations with a cost of NGN 4,638,078,000
  1. Impairment of Assets
    Within the period under review, none was impaired and there were no reversals of previous impairment charges in the current period.

9

INVESTMENT IN SUBSIDIARY

Hereunder, is the entity controlled by Presco Plc, the Group.

Name of Company

Place of incorporation

% interest

Carrying amount

September

December

2023

2022

N'000

N'000

Siat Nigeria Limited

Nigeria

100

23,000,000

23,000,000

10

INVENTORIES

Group

Company

September

December

September

December

2023

2022

2023

2022

N'000

N'000

N'000

N'000

Supplies (Spares)

5,475,040

3,592,096

2,517,964

3,023,868

Finished Goods

3,173,821

414,639

2,330,477

319,470

Goods in transit

1,968,489

121,001

1,415,062

88,431

6,263,503

3,431,769

10,617,349

4,127,736

11 TRADE AND OTHER RECEIVABLES

As of the end of reporting period, the analysis of the trade debtors and bills receivables (which are included in trade and other receivables) based on invoice date is as follows:

Group

Company

September

December

September

December

2023

2022

2023

2022

N'000

N'000

N'000

N'000

Trade receivables

3,240,243

2,136,987

2,796,160

2,124,887

3,240,243

2,136,987

2,796,160

2,124,887

Other receivables

18,577,735

9,421,476

Intercompany receivable

16,509,613

3,308,515

Other debtors

(4,643,975)

1,688,661

(5,046,038)

1,247,616

Financial assets measured at amortised cost

16,327,858

12,793,979

15,105,882

7,134,163

The average credit period granted to customers is 30 days.

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Presco plc published this content on 27 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2023 09:12:38 UTC.