Chams Holding Company Plc posted a profit after tax of N20.2 million in FY 2023, marking the first time since 2019 the company has recorded a profit.
The N20 million posted represents a 106% improvement from the N375.2 million loss after tax posted in 2022.
According to the group’s audited financial statement for 2023, it posted a 90% revenue growth, as it posted N9.6 billion in revenue in 2023, up from N5.1 billion posted in 2022.
The IT firm primarily generated revenue from its card solution, contributing N3.6 billion, with its new and membership solution following closely, generating N2 billion in revenue.
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Key Highlights (FY 2023 vs FY 2022)
- Revenue: N9.6 billion, +90% YoY
- Cost of sales: N7.8 billion, +92% YoY
- Gross profit: N1.86 billion, +85% YoY
- Selling and marketing expenses: N215.7 million, +611% YoY
- Operating profit: N370.5 million, +6888% YoY
- Profit before tax: N248.5 million, +293% YoY
- Profit for the year: N20.2 million, +106% YoY
- Total assets: N19.0 billion, +16% YoY
What you should know
The return to profitability for Chams Holdco is viewed as a step in the right direction, however, with sustained losses amounting to N2.2 billion, there is still a task ahead.
The group also did not accrue any FX losses as it did not have any liability to be settled in foreign currency.
The group’s payment solution Kegow generated N9.8 million in revenue in 2023, marking a 453% growth from the N1.8 million posted in 2022.
However, the group generated only N17,000 from its bulk SMS solution, representing a 99.8% decline from the N7.2 million made in 2022.
Chams is transitioning into a core software solution provider, as it recorded zero revenue from its phone, computer, and accessories business in 2023.
Recommended reading: Chams Holdings reports 390% profit growth, unaudited pre-tax profit hits N373.9 million in 2023
