In 2024, CWG Plc, a Nigerian provider of integrated ICT solutions, reported a solid financial performance. The firm said in a statement that its pre-tax profit increased to N4.4 billion, a 290.24% rise over the N1.1 billion it reported in 2023.
We highlight CWG Plc on this edition of Follow the Money with Ugodre, which reported a 290% increase in pre-tax earnings to ₦4.4 billion in 2024. With software, managed support, and IT infrastructure accounting for more than 94% of earnings, revenue nearly quadrupled to ₦46.3 billion. Despite growing expenses, CWG maintained high profits and suggested a 39 kobo dividend.
The company, which is also listed on the Nigerian Exchange Limited (NGX) and has operations in Ghana, Cameroon, Uganda, and the United Arab Emirates, recorded N46.3 billion in sales for the whole year, which represents a 97% increase over the same time in 2023.
As the All-Share Index closed at 104,962.96, the market fell 0.94%, bringing the capitalization below ₦66 trillion. Consumer products had a little increase thanks to flour mills, while other industries saw a decline.
Nigerian Breweries acquired Distell Wines in its entirety. Although underwriting losses are always a concern, AIICO Insurance reported a 21% increase in profits. Despite turning a profit in Q4, IHS Towers concluded the year with a $1.6 billion deficit. The ₦150 billion rights issue of FirstHoldco was 25% oversubscribed.
The latest financial statement from CWG Plc shows remarkable expansion across all of its business divisions.
Software solutions accounted for N16.4 billion (35.43%), managed support services for N14.5 billion (31.39%), and IT infrastructure services for N12.7 billion (27.28%) of the company’s total revenue.
A total of N2.1 billion and N447.4 million came from its platform business, communications, and integrated services, respectively. Similarly, sales expenditures expanded by 108.38%, or 94.13%, to N36.4 billion. Additionally, gross profit increased to N9.8 billion from N4.7 billion the year before.
This indicates that the business is better able to withstand rising expenses while recording increasing income.
According to the report, staff expenditures jumped to N2.8 billion, while administrative expenses went up to N5.7 billion. In a similar vein, financing expenses rose 13.53% to N95.5 million. On the other hand, finance income rose 316.13% to N62.6 million, mostly due to higher interest income.
The end result was a significant increase in pre-tax profit, which demonstrated a successful development plan in spite of the difficult economic climate.
CWG Asset Position, Growth, and Announcement of Dividends
According to its report, CWG Plc has a better asset foundation since its total assets grew by 68.09% in 2023, from N17.8 billion to N29.9 billion.
Due in significant part to increased trade and other receivables, current assets increased to N28.3 billion, while non-current assets increased to N1.6 billion. At N3.4 billion, retained profits also increased by 330.55%.
Its 2024 performance demonstrates a sound management approach despite growing operational expenses and its capacity to generate revenue growth across a variety of business sectors.
This indicates improved financial status.
CWG Plc declared a final dividend of 39 kobo per share for the fiscal year that concluded on December 31, 2024, as a way to thank its shareholders. The report states that on Monday, April 7, 2025, “dividends, after withholding tax in a manner satisfactory to the Federal Government and as may be authorized, will be distributed to members on the Register of Members.”
Additionally, the firm said that on Tuesday, April 8, 2025, its register would close, and on April 11, 2025, dividends will be paid via electronic transfer. This illustrates even further how the business works to provide investors with value via transparent and sound governance.
A variety of technology-enabled solutions are offered by CWG Plc. For companies, financial institutions, and governmental organizations, it provides managed support services, cloud computing, software solutions, IT infrastructure, and fintech innovation to digital transformation.
Its capacity to offer top-notch solutions in Africa and throughout the world has also been reinforced by its strategic alliances with leading global technology companies.
The study in the paper indicates that CWG Plc intends to continue concentrating on digital transformation and use its dominant market position to propel expansion in both new and existing business sectors. The business is well-positioned to maintain its development trajectory in the upcoming years thanks to increasing investments in technology and strategic alliances.
CWG Plc has the ability to take advantage of the present trajectory and solidify its position as a leader in the Nigerian ICT sector thanks to its extensive service portfolio and outstanding dedication to corporate governance transparency.
Note: The presenter’s opinions, not those of Nairametrics, are reflected in this show. It is not investment advice; it is only for educational reasons. Before making a choice, investors should conduct due diligence and speak with a financial advisor.
Watch the entire episode right now on YouTube at Nairametrics TV.
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