CWG Plc recorded a net loss of N1.58 billion in 2017, relapsing into a losing streak that had seen the technological company with a pre-tax loss of N1.75 billion in 2015. Amid assurances of a sustainable rebound, CWG improved from a pre-tax loss of N1.75 billion in 2015 to profit before tax of N142 million in 2016.
Key extracts of audited report and accounts of CWG for the year ended December 31, 2017 released at the weekend showed that turnover dropped from N10.166 billion in 2016 to N8.827 billion in 2017. The company recorded pre and post tax losses of N1.511 billion and N1.576 billion in 2017 compared with profit before tax of N142.04 million and profit after tax of N127.68 million in 2016.
The board of directors of CWG, formerly Computer Warehouse Group, had earlier alerted the investing public that the technological company had suffered decline in performance and its earnings might be significantly lower than the previous reports.
“The reduction in earnings is predominantly a result of losses incurred due to the financial cost implications of non-actualised projects which have adversely affected the company’s estimated earnings and year end projections,” the company stated.
The company however assured that its profit margin has continued to remain stable , despite the decline in earnings.
Chief Executive Officer, CWG Plc, Mr. James Agada, had assured that the company would build on its 2016 performance in 2017 as many initiatives would be activated to support the steady growth of the Company.
He said the 2016 results reflected the continuing focus of the company on sustainable income streams, cost management and extraction of best value for the shareholders.
According to him, in the face of the tough operating environment, the Group made a strategic decision to focus on profitable IT Solutions with less exposure to foreign exchange fluctuations and with predictable recurrent revenues.
Agada said CWG was at the frontier of deployment of IT solutions adding that the company would continue to benefit as Nigerian public and private sector stakeholders adopt cutting-edge technologies.
He noted that CWG has been working in partnerships with banks in deploying innovative technology-based products that enable customers’ access financial and other value added services through various mobile platforms while furthering the national goal of financial inclusion.
He assured shareholders that the directors of the company would continue to chart the course of steady and sustainable growth with a view to ensuring good returns to Shareholders.
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