Our debt financing is summarised herewith from our comprehensive 10 years business plan. It outlines our basic assumptions and forecast of pre- tax profits for 10 years.
We are of the opinion that subject to unforeseen circumstances, operating profits before interest and taxation for the projected 7 years will be approximately (-N29,304,004), N320,211,698, N966,245,535, N1,428,790,853, N1,113,356,284, N2,351,498,780, N3,653,623,510 respectively.
Based on the projected level of operations, revenue will be approximately N220,644,000 for the first cropping season from sales of paddy alone on 600 hectares. This could be repeated up to 1,200 hectares through the Anchor Borrower Program (ABP) so as to generate sufficient revenue to qualify for institutional investment.
Subject to the attainment of the estimated income under the ABP (in 18 months), the revenue for the subsequent 2-7 years will be N1,118,634,500, N2,201,175,000, N3,521,880,000, N3,962,115,000, N5,811,102,000 and N8,364,465,000 respectively.
Our forecast is that the project will enjoy profits of well over 35% with the 7 years projected total turnover of NGN25.2 billion, for a capitalization of NGN7.17 billion, while creating 2,542 jobs and adding NGN871 million into the local economy in wages within 5 years.
The projected results for the 7 years’ period have been prepared on a basis consistent with normal accounting policies.
The forecasts are based on generally accepted accounting standards and have been prepared in accordance with the Companies and Allied Matters Act, CAP C20 LFN 2004; Insurance Act CAP I17 LFN 2004 and Investment and Security Act 2007.
Direct cost, salaries admin and insurance expenses will continue to bear the same relationship to premium as contained in the budget.
There shall be no material changes in the accounting policies currently in use by the company.
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