ABSTRACT
Reorganisation is a financial and corporate management strategic device to salvage undertakings facing difficulties. Ahmadu Bello University Press Limited had been sustaining substantial trading losses in the past and this led the management opting for reorganisation to salvage the company from total collapse. Eventually, after few years of the exercise there was no empirical evidence to substantiate whether the company had responded to the exercise. This study examines the impact of the reorganisation exercise on the performance of ABU Press Limited.
Both Operational and Financial Performance indicators are studied. Profitability, turnover, efficiency, asset turnover and cost to profit margin were used as financial performance variables, while, productivity, quality of personnel, fixed asset investment, incentives and advertisement expenses are variables used for operating performance. Data for the study were sourced from annual financial statements and staff personal record files of the company, for the period of 2000-2005 and 2007-2012 dichotomised as pre and post reorganisation time span.
Sample paired test was used as tool for the analysis to assess any significant difference recorded during the two periods. The results revealed that reorganisation has significant impact on the financial as well as operating performance variables except two variables; efficiency and incentives, which show no significant impact. The study concluded that, reorganisation has significant impact on financial and operating performance. The study recommends among other things; introduction of new products and customer oriented marketing activities to boost revenue, capital and management reorganisation should be pursued vigorously, shift in ownership structure of the university presses in the country to enhance profitability and productivity.
