CWG grows profit 570% to N487m in 2020

CWG grows profit

CWG grows profit 570% to N487m in 2020


 

Despite many challenges that characterized the year, the Computer Wharehouse Group (CWG) Plc grew its net profit by 570 per cent to N487 million in 2020.

Data obtained from its unaudited financial statement for the year ended December 31, 2020 showed that profit after tax rose by 570 per cent from N72.7 million in 2019 to N487 million in 2020.

The report, submitted at the Nigerian Stock Exchange (NSE), showed that the system integration company grew its top-line by 23.4 per cent to N11.8 billion.

Gross profit also rose by 13.9 per cent to N2.6 billion while operating expenses dropped by 24.4 per cent to N1.8 billion.

According to the report, earnings before interest, tax, depreciation and amortization (EBITDA) closed 2020 at N888 million. Earnings before interest stood at N636 million while profit before tax closed 2020 at N546 million.

The growth underscored the company’s resilience amid the COVID-19 pandemic, as it continued to launch innovative solutions and invest in rewarding partnerships.

In 2020, CWG had launched its cloud-based ERP solution to address the challenges confronting small and medium enterprises (SMEs) and enhance their operations.

The solution, known as SMERP, ensures smooth functioning of daily processes, enhancement of work efficiency and substantial reduction in recurring cost.

It also entered into strategic partnership with Clari5 to help African banks combat enterprise fraud and money laundering. Clari5 is a global leader in financial crime risk management systems.

With 200 million accounts at a single site, Clari5 has the world’s largest implementation of a fraud management solution.

Through the strategic partnership, CWG and Clari5 provide solutions to African banks to counter enterprise-wide fraud and money laundering risk.

Phillip Obioha, chairman, CWG Plc, told shareholders at their last annual general meeting that the company was working on a major long-term growth and development plan that would see the system integration company continuing as a leading operator over the next five decades.

He said CWG has been positioned to continue to innovate and create cutting-edge technology and services that will be relevant now and in the future.

According to him, CWG is well-positioned and equipped to redefine innovation that provides solutions to the technologically-based institution gaps that are seen in potentially viable and critical sectors of the Nigerian economy and Sub-Saharan Africa.

Adewale Adeyipo, chief executive officer, CWG Plc, has said the company’s five operating strategic pillars have been major drivers for its growth and resilient financial performance.

He explained that the five operating strategic pillars, which include growth, profits, liquidity, brand and dividend, have been essential guide on what CWG will be doing and how it would be done

“We evaluate every decision and predetermine the contribution to all or any of these pillars. The pillars have created focus and clarity. They have helped us to know what business to take seriously and what we should cease doing.

“Not every opportunity is considered to be a ‘must have’,  it mostly depends on its contribution to the pillars. I can tell you that the underlining principles that have kept us focused are these five pillars,” Adeyipo said.