Prime Business AfricaWithin two weeks, Austin Laz’s shareholders lost 18.18 per cent of their investment as the aluminium roofing sheets producer announced it failed to record any revenue in the first quarter (Q1) of 2025.
In a statement dated April 22, 2025, Austin Laz, the first ice block making machine made in Nigeria, informed its investors and the Nigerian stock market that towards the end of the fourth quarter (Q4) of 2024, the company experienced a major breakdown of its machines.
Join our WhatsApp ChannelDue to a lack of funds and a high exchange rate, Austin Laz said it could not purchase its machines and some vital consumables, mainly sourced from China, and all efforts to locally source spares have yielded no positive outcome.
Consequently, the company’s operation has been stalled as the machine remained idle and non-functional, resulting in Austin Laz recording zero turnover between January and March this year, against the N641.70 million revenue generated during the same period last year.
Also, the 43-year-old company’s woes were compounded with a N2.52 million loss in its bottom line, failing to replicate the N47.19 million profit after tax recorded in Q1 2024.
With zero net income, the company’s retained earnings stood at N47.70 million in Q1 2025, compared to N421.76 million reported in the corresponding period last year.
The manufacturer currently has zero cash at hand, unlike last year’s Q1 when it held a meagre sum of N393,000, while its cash at bank has plummeted from N12.43 million to N1.37 million.
Prime Business Africa gathered that on the same day the letter was dated, the stock market was bearish on Austin Laz, with sentiment that the asset would experience a downward trajectory.
Prior to the announcement, Austin Laz’s shares had appreciated by 15.46 percent between January 2 and April 22, moving from N1.81 kobo to N2.09, however, it has since declined below its opening price this year, trading at N1.71 kobo as of May 2.
Analysis showed that between April 22 and May 2, shareholders of the company recorded a combined loss of N410.34 million.
Also, Austin Laz’s market valuation has plunged from N2.25 billion to N1.84 billion within two weeks.
This indicates investors in the stock market turned their backs on Austin Laz despite the company making it known that it has re-established contact with its Chinese machine manufacturers, with a view to opening talks towards resolving the challenge of repairs.
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Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.
Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.
He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.
Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.
