Polvek Tybor
Imperial Chemical Industries
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Posted - 2008.02.10 16:25:00 -
[1]
Edited by: Polvek Tybor on 10/02/2008 16:29:29 Edited by: Polvek Tybor on 10/02/2008 16:28:18 Dear all,
Another 2 weeks have passed and the fortunes of Imperial Chemical Industries [ICHEM] have taken a turn. That said, however, ICHEM is pleased to report that the 3rd bond coupon of 25m ISK (10% per month) has just been paid and the business remains marginally profitable.
Some strange market pricing for intermediate moon minerals resulted in a complete collapse in profitability for part of the period. For most of the first week Ferrofluid was trading at a discount to its raw materials - at which point the directors were simply forced to switch off and retool the reactors. At the same time, however, the Prometium product line was doing great guns with up to 4m isk per hour of profitability. We are glad to report that the market seems to have now stabilised with moderate profitability across the board.
As can be seen below the reactor downtime led to a 25% reduction in revenues to 1.4bn. The collapse of Ferrofluid profitability for a significant period resulted in a fall in gross margin to 19% (down from 30% in the prior period). The significant fall in our gross margin coupled with slightly rising fixed costs resulting in a major hit to net margin - down to only 5% from 20% in the prior period - and overall profit for shareholders of just 69m for the two weeks.
We could be seeing the end of the moon mineral boom following Trinity but it's just too early to tell yet.
Income Statement
...............................2 weeks to 10 Feb................2 weeks to 27 Feb
Revenue................................1,399..................................1,863 Cost of Sales.........................(1,140)...............................(1,308)
OPERATING PROFIT..............259....................................555
Fuel Costs..............................(136)...................................(114)
Administrative Expenses..........(29)....................................(37) Interest Payable......................(25)....................................(25)
PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS.........69....................................379
Balance Sheet
............................................10 Feb.............................27 Jan
Plant and Equipment....................570.................................570
Cash.........................................335...................................435 Fuel...........................................118....................................93 Inventory..................................366....................................222
TOTAL ASSETS......................1,389..................................1,320
Debt Securities in Issue...............500...................................500
TOTAL LIABILITIES.................500...................................500
Share Capital............................250.....................................250 Retained Earnings.....................639.....................................570
CAPITAL AND RESERVES........889...................................820
Best regards, Polvek
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