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Premier Leasing keeps bleeding for three straight years

Staff Correspondent
31 Aug 2023 20:48:31 | Update: 01 Sep 2023 12:36:37
Premier Leasing keeps bleeding for three straight years

Premier Leasing and Finance Limited, a non-bank financial institution (NBFI), incurred losses for three years in a row as the listed NBFI reported a mega loss in the year 2022.

It made significant losses in 2021 and 2020 as well.

The company also failed to pay any dividends to its shareholders for four straight years till 2022, as per a latest disclosure filed with the Dhaka Stock Exchange (DSE) on Thursday.

Although the financial report of 2022 was published on Thursday, the listed entity did not give any explanation about why it was making continuous losses.

In the financial report for 2021, the NBFI, however, had mentioned that high volume of classified loans, a negative capital adequacy ratio, excess liabilities, and big losses led it to face big losses.

The company posted a net loss of Tk 212.35 crore in 2022, against the loss of Tk 241.73 crore in the year before.

The company in 2020 had incurred a loss of Tk 38.96 crore.

The listed NBFI has not been giving any dividends to its shareholders since 2019.

When contacted, Subash Chandra Moulick, an executive vice president (EVP) of Premier Leasing and Finance declined to make any comment on its financial status and dividend issue.

The company made a net profit of Tk 2.26 crore in 2019.

However, the company had not paid any dividend to the shareholders for that year also.

The company for the last time had paid a 5 per cent bonus dividend in 2018.

As per its financial report for the year ended in December 2022, the company posted 187.84 per cent higher loss in earnings. Its earnings per share (EPS) stood at Tk 15.97 negative against Tk 18.18 negative for the previous year.

The company will hold an annual general meeting (AGM) on November 16 next and the record date has been fixed at September 25.

The company reported a consolidated NAV per share of Tk 18.23 negative and a consolidated NOCFPS of Tk 12.19 negative for the year ended December 31, 2022, against Tk 2.12 negative and Tk 4.59, respectively, for the previous year.

Currently, its shares are trading below the face value of Tk 10 each. On Thursday, its share trading price was Tk 6.80 each on the DSE.

On Thursday, Premier Leasing and Finance also published its unaudited financial report for the first quarter (January–March) of 2023 period.

Its consolidated NOCFPS was Tk 0.97 for January-March 2023 against Tk 2.32 for January-March 2022.

The company’s consolidated NAV per share was Tk 19.79 negative as on March 31 this year which was Tk 4.58 negative till March 31, 2022.

Meanwhile, the company’s consolidated EPS was Tk 4.22 negative for H1 of 2023 against Tk 5.40 negative for January-June 2022.

Its consolidated net asset value (NAV) per share was Tk 22.48 negative at the end of June 2023 which was Tk 7.65 negative till June 30, 2022.

Listed in 2005, Premier Leasing and Finance has a paid-up capital of Tk 132.97 crore.

Sponsors and directors jointly owned a 28 per cent stake in the company, while institutional investors held 23.47 per cent, and the general public 48.53 per cent as on July 31, 2023.