Computer Warehouse Group (CWG) Plc, the company that provides IT services and computer networking solutions to businesses posted a loss after tax of N1.85 billion in December 2015 from a profit position of N234 million the previous year.
According to the CWG 2015 audited financial statement, the company’s loss position was as a result of weak sales. (Revenue was up 1.6 percent). Subsequently, cost of sales overwhelmed sales and resulted in lower gross profit.
Further analysis of CWG’s financial statement shows administrative expenses of N4.41 billion swallowed the whole of N2.44 billion gross profit.
Theses loses means the company has to carry out urgent restructuring and market penetration strategies in order to deepen sales and revert to the path of growth.