TUNISIE LEASING, the dominant leasing Sector Company, unveiled its annual full results to be in line with market expectations and little different from preliminary. Despite lower market share, or 22% versus 25% YoY, TL has maintained its leadership away from the second operator that hold nearly 15%. Overall the results are satisfactory, the ROAE rose from 18.3% to 18.6% whereas the leverage decreased below the sector average (5%) at around 4.7%. During 1999, TL's activity struggled well and has been consolidated despite fierce competition within a scanty sector. Approvals in leasing contracts reach out TND 100 m whereas production rose 19%, up to TND 86 m from TND 72.6 m in 1998. For 1999, Client account decreased to represent 9.8% of the booked risk thanks to sustained collection efforts. This emphasised the company’s ability to face payments defaults as the general provisions level amounts currently to TND 1.25 m while the provisioning rate slightly eased to 1.23% per year against 1.86% in 1998 and 1.74 in 1997. EPS was moving 17.4% higher from TND 4.57 to TND 5.37. The dividend is still unchanged at TND 1.5 to be paid on 14 July. Responding to some concerns about ongoing probes on fiscal board, M.Abdelkafi, the AGM president said that the tax adjustment causing the AGM delay would no more underpin the 2000 results as the arrears are being sharply cut to be much less significant. Also, it's understood that the externalisation of the Factoring activity since the latter half of 99 is likely to be consolidated with TL accounts starting from 2000 exercise. The new entity is owned 60% by TL whereas 10% are held by EULER and the remaining stake by TFG, the holding group. (TUSTEX)
© 2000 Mena Report (www.menareport.com)
