C&I Leasing revisited

I have analyzed this company before but new information reaching the market has made me revisit it. The company has finally decided to come back to the market raise money. This is coming at the heels of their recently released first quarter results for April, 2008. We are yet to get their full year results for January 2008.

The company increased its revenues from N517.626 million to N989.541 million indicating a 91% increase. The profit before tax rose by 35% from N76.155 million to N102.680 million and the after tax profit increased by 43% from N60.924 million to N87.278 million. I need more information before I can come to a conclusion to the reason why there was so much discordance between the turnover and the profit before tax, which also ended up affecting the profit after tax.

This result shows that the current earning per share of this company is 4K translating into a projected full year earnings of 16K. This means that at the technical suspension price 0f N11.16 the forward price earning multiple is 69.75x. I agree that this is a growth company but the current technical suspension price may not really be worth it. Its fair value is around N3.52 but a technical suspension price of around N7 would have made more sense to me.