Computer Warehouse Group Plc has declared revenue of N8.6 billion for the half year ended June 30, 2015.
The results, which were released recently, showed that the revenue was from N8.4 billion posted in the corresponding period of 2014.
However, business margins were squeezed from 20 per cent in 2014 to 14 per cent in 2015, as the company was unable to fully pass increased costs to its customers.
Similarly, there was a seven per cent increase in operating expenses from N1.3 billion to N1.4 billion due to largely to one-off restructuring expenses taken by the company.
As a result, CWG ended the half year with a loss of N351 million, compared with a profit of N246 million in the corresponding with period of 2014. Also with a significant segment of the company’s business dependent on international procurement, the difficulties of foreign exchange sourcing had a negative impact on the results.
Particularly, the company’s performance was affected by the recognition of foreign exchange losses of N277 million and the write-off of N103 million, arising from the cancellation of a transaction duly recognized in fourth quarter of 2014. Despite the loss, company finished with a strong cash position of N1.3 billion at the end of the second quarter of 2015.
Speaking on the performance, the Executive Director, Finance and Operations of CWG Plc, Mr. Kunle Ayodeji, said the business environment remains very challenging, with many organisations holding back on new capital expenditure and investments, as the economic direction of the new government is being observed.
