CWG Plc Reports N4.4bn Pre-Tax Profit, Announces Dividend

CWG Plc has reported a remarkable financial performance for the year ended December 31, 2024, posting a pre-tax profit of N4.4 billion, representing a 290.24 percent increase from the N1.1 billion recorded the previous year.

The company’s full-year revenue surged by 97 percent year-over-year, reaching N46.3 billion, nearly doubling the N23.5 billion reported in 2023.

The impressive revenue growth was driven by key business segments, with software solutions contributing 35.43 percent of total revenue at N16.4 billion, managed support services generating N14.5 billion (31.39 percent), and IT Infrastructure Services bringing in N12.7 billion (27.48 percent). Additionally, the platform business added N2.1 billion, while communications and integrated services accounted for N447.4 million.

Despite a significant rise in revenue, the company’s cost of sales increased by 94.13 percent, reaching N36.4 billion compared to N18.7 billion in the previous year. The breakdown of costs revealed that managed support services accounted for N13.3 billion, software-related costs stood at N11.46 billion, and IT Infrastructure Services contributed N11.40 billion. However, CWG Plc managed to improve its profitability, with gross profit climbing by 108.38 percent to N9.8 billion, up from N4.7 billion in 2023.

Other income also saw an 82.96 percent increase year-over-year, reaching N237.5 million, primarily driven by sundry income, which made up N199.1 million of the total. Meanwhile, administrative expenses rose by 63.11 percent to N5.7 billion, with staff costs accounting for N2.8 billion.

The company recorded a notable exchange gain of N18.7 million, a significant recovery from the N182 million loss reported the previous year. However, finance costs increased to N95.5 million, a 13.53 percent rise, with interest on short-term loans totaling N52.4 million. In contrast, finance income surged by 316.13 percent to N62.6 million, largely driven by increased interest income.

CWG Plc’s balance sheet also showed substantial growth, with total assets rising by 68.09 percent year-over-year to N29.9 billion from N17.8 billion in 2023. Non-current assets increased to N1.6 billion, with property, plant, and equipment making up N957.3 million of the total. Meanwhile, current assets rose from N16.6 billion to N28.3 billion, primarily due to a rise in trade and other receivables, which stood at N16.7 billion.

In addition to its strong financial performance, CWG Plc declared a final dividend of 39 kobo per share for the period ended December 31, 2024. The dividend, subject to withholding tax and shareholder approval, will be paid to shareholders whose names appear in the Register of Members as of the close of business on April 7, 2025.

With record-breaking growth in revenue, profit, and assets, CWG Plc has demonstrated strong financial health and operational efficiency, positioning itself for continued expansion in Nigeria’s technology services industry.