SCOA Nigeria Plc has reported a total of N12.017 billion borrowings in 2025, comprising N11.043 billion current borrowings and N974.32 million non-current borrowings, indicating a 115.2% increase in borrowings from N5.58 billion in 2024 to N12.017 billion in 2025.
This is according to the company’s audited financial statement for the period ended December 31, 2025, which was filed with the Nigerian Exchange (NGX) on Wednesday, April 8, 2025 , and shows high reliance on debt financing.
Consequently, total liabilities surged by 108.4% year-on-year to N19.87 billion as of December 31, 2025, up from N9.56 billion in 2024.
Despite mounting leverage and liquidity pressures, SCOA’s share price has surged 219% year-to-date, rising from N7.10 to N22.65 as of April 8, ranking it the fifth best-performing stock on the NGX. This performance comes even as the company has not paid dividends or issued bonus shares for about 10 consecutive years, a factor that would typically deter long-term investors.
What the data is saying
A breakdown of the company’s balance sheet shows that current borrowings jumped 153.8% to N11.04 billion from N4.36 billion in the prior year.
- Trade and other payables also rose sharply by 154.4% to N6.46 billion, suggesting higher supplier obligations and increased reliance on credit to support day-to-day operations.
- The surge in borrowings significantly elevated SCOA’s debt-to-equity ratio, pointing to a more leveraged capital structure dominated by short-term financing.
- Despite the spike in debt, SCOA reported no finance costs in 2025, compared to N4.01 million recorded in 2024, suggesting that the company possibly benefited from favourable credit terms or capitalised borrowing costs.
The absence of interest expense provided a boost to earnings and helped cushion the impact of declining revenue. Administrative expenses also declined by 8.5% to N1.34 billion, further supporting bottom-line growth.
Key highlights (2025 vs 2024)
- Revenue: N8.36 billion, down 38.4% YoY (N13.53 billion in 2024)
- Cost of Sales: N7.06 billion, down 42.9% YoY (N12.34 billion in 2024)
- Gross Profit: N1.30 billion, up 8.3% YoY (N1.19 billion in 2024)
- Distribution & Administrative Expenses: N1.34 billion, down 8.5% YoY (N1.46 billion in 2024)
- Finance Income: N42.48 million, up from N1.14 million in 2024
- Pretax Profit: N804.70 million, up 114.8% YoY (N374.40 million in 2024)
- Post-Tax Profit: N553.75 million, up 142.5% YoY (N228.81 million in 2024)
- Total Assets: N22.99 billion, up 91.1% YoY (N12.01 billion in 2024)
- Total Liabilities: N19.87 billion, up 108.4% YoY (N9.56 billion in 2024)
- Equity Attributable to Shareholders: N1.73 billion, up 51.9% YoY (N1.14 billion in 2024)
- Earnings per Share: 85kobo, up 142.9% YoY (35kobo in 2024)
More insights
Revenue dropped significantly by 38.4% to N8.36 billion from N13.53 billion in 2024, driven by weaker performance across equipment sales and motor vehicle distribution segments.
- However, the cost of sales declined at a faster rate, falling 42.9% to N7.06 billion, leading to a modest 8.3% increase in gross profit to N1.30 billion.
- The improved cost efficiency helped operating profit rise sharply, supporting an 114.8% increase in pre-tax profit to N804.7 million.
- Despite weaker topline figures, profit after tax rose by 142.5% to N553.75 million from N228.81 million in the previous year.
The growth was largely driven by improved margins, reduced operating expenses.
Balance sheet performance
While assets grew by 91.1% to N22.99 billion, driven mainly by a surge in receivables and inventory, the company’s liabilities rose even faster by 108.4% to N19.87 billion, up from N9.56 billion in 2024 with cash position weakening significantly.
- However, equity attributable to shareholders rose by 51.9% to N1.73 billion, up from N1.14 billion in 2024.
- Cash and cash equivalents declined by 74% to N1.05 billion due to increased working capital requirements, including a sharp rise in receivables and inventory, highlighting liquidity strain.
- Although SCOA delivered strong profit growth in 2025, the sharp increase in borrowings and declining cash levels point to potential liquidity risks.
- Overall, the data points to stronger profits but rising financial risk due to heavy leverage and weak cash flow.
The company’s growing reliance on short-term debt, combined with weaker revenue performance, suggests that sustaining profitability may depend on improved cash flow generation and a more balanced capital structure going forward.
Market reaction
The market is yet to react to the audited result without dividend or bonus shares distribution to shareholders for about 10 straight years.
- The decade-long drought of returns to shareholders notwithstanding, the company’s shares have delivered strong year-to-date gains, climbing 219% from N7.10 at the start of 2026 to close at N22.65 on April 8.
- This performance ranks the stock fifth on the Nigerian Exchange (NGX) in terms of year-to-date returns.
- With 650 million shares outstanding and a market capitalization of N14.7 billion as of Wednesday, April 8, the company is currently the 106th most valuable stock on NGX, about 0.011% of equity market value.
Trading activity shows moderate investor interest, with 13.1 million shares exchanged over 5,285 deals in the past three months.
