Presco PLC ends another trading week in the green as its share price increases, continuing a three-month bull run.
The stock has already moved by 18% in August 2024, closing at a share price of N477 on the trading day that ended on August 16, 2024, with a market volume of 187,758 shares.
Strong moves to the buy-side began in May 2024, after the stock fell to N209 per share in April, and saw May, June, July, and the second week of August end in the green.
Overall, Presco has been bullish since closing at a low of N36 per share in April 2020, except for significant sell-side pressure, which caused it to tumble from a high of N165 to N110 in June 2022.
The stock is already trading at a volume of 6.2 million shares within two weeks of market activity in August 2024, surpassing the volume it posted in June by 22%.
What to know
Presco’s pre-tax profit grew by 109.5% year-over-year in the second quarter of 2024, at 45.2 billion, up from N21.5 billion reported the previous year.
- Revenue increased to N69.6 billion in 2024, marking a 78.92% year-over-year growth from N38.9 billion posted in 2023.
- However, the cost of sales in the second quarter of 2024 increased by 40.65% from N11 billion the previous year to 15.5 billion in Q2 2024, with a 12.69% increase in finance costs year-over-year.
- The company’s earnings per share from common stocks increased by 113.23% year-over-year to N33.69 from N15.80 recorded the previous year.
Dividend paid to shareholders
At the company’s 31st annual general meeting in July 2024, shareholders announced that it will pay a dividend of N24.30 per ordinary share of 50 kobo, totaling N2.4 billion.
- The final dividend announced in the general meeting, in combination with an interim dividend, which was previously announced at N2.00 per 50 kobo, aggregated to N26.3 billion worth of dividends for members in 2024.
- In a statement, the Presco’s chairman, Mr. Rasheed Sarumi, stated that the company is poised to attain operational excellence, uphold the highest standards of corporate governance, and pursue substantial growth.
- In the earnings forecast report posted on the NGX disclosure page, the company projected revenue of N134.4 billion and pre-tax profits of N61.9 billion for the third quarter of 2024.
Hence, revenue and pre-tax profits are estimated at 93.10% and 36.95%, respectively, in the third quarter of 2024, along with more increase in the share price of the stock.