CWG Plc reports 290% pre-tax profit increase in 2024, offers 39 kobo dividend

Nigerian integrated ICT solutions provider, CWG Plc has reported a strong financial performance in 2024. According to a statement by the company, its pre-tax profit jumped to N4.4 billion, an increase of 290.24% from the N1.1 billion that it posted in 2023.

The firm, listed on the Nigerian Exchange Limited (NGX) with its operations expanding across Ghana, Cameroon, Uganda, and the UAE, also reported a full-year revenue of N46.3 billion, representing a 97% year-on-year jump from the corresponding period in 2023.

CWG Plc’s recent financial statement indicates impressive growth in its various business segments.

The company’s revenue streams are diverse: software solutions contributed N16.4 billion (35.43% of total revenue), managed support services contributed N14.5 billion (31.39%), and IT infrastructure services contributed N12.7 billion (27.48%).

Its platform business, communications and integrated services contributed a total of N2.1 billion and N447.4 million, respectively. Similarly, sales expenses increased by 94.13% to N36.4 billion, a 108.38% expansion. Gross profit also grew from N4.7 billion recorded in the previous year to N9.8 billion.

This signals the company’s improved ability to weather growing costs whilst registering improving profitability.

The report further indicates that administrative expenses increased to N5.7 billion, with personnel costs rising to N2.8 billion. Similarly, finance costs increased by 13.53% to N95.5 million. Finance income, however, increased by 316.13% to N62.6 million, largely because of improved interest income.

The net effect was a high rise in the pre-tax profit, reflecting an effective expansion strategy amidst the challenging economic environment.

Read also: Founders stories: How Austin Okere’s CWG brought Finacle into Nigerian banking in the 2000s

CWG Asset Position, Dividend Announcement and Growth

According to its report, CWG Plc captured an improved asset base since total assets increased from N17.8 billion to N29.9 billion in 2023, up by 68.09%.

This was fueled by the increase in non-current assets, at N1.6 billion, and current assets, which rose to N28.3 billion largely owing to heightened trade and other receivables. Retained earnings also soared by 330.55% to N3.4 billion.

Its performance in 2024 signals a prudent management strategy in the face of rising operating costs and its ability to drive revenue growth through diversified business segments.

This reflects an enhanced financial standing.

In its effort to reward its shareholders, CWG Plc announced a final dividend of 39 kobo per share for the financial year ended December 31, 2024. “Dividends, following 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 on Monday, April 7, 2025”, the report says.

The company also announced that its register will close on Tuesday, April 8, 2025, while dividend payment will be made through electronic transfer on April 11, 2025. This further demonstrates the company’s efforts to pay value to its investors through open and good governance.

CWG Plc provides a wide range of technology-enabled solutions. Its offerings include IT infrastructure, managed support services, cloud computing, software solutions as well as fintech innovation to digital transformation for businesses, financial institutions, and government agencies.

Its strategic partnerships with global technology leaders have also further strengthened its ability to provide world-class solutions in Africa and globally.

According to the report’s analysis, CWG Plc plans to sustain its focus on digital transformation leveraging its strong market position to drive growth in new and existing business segments. With increased investment in technology and strategic partnerships, the company is positioned to sustain its growth trajectory in the coming years.

With such a robust service bouquet and excellent commitment to transparency in corporate governance, CWG Plc has the potential to capitalize on the current trajectory to cement its position as a leader in the Nigerian ICT sector.