Japaul Gold’s pre-tax profit falls 13% in 2025 despite 28% revenue growth

Japaul Gold & Ventures Plc reported a group pre-tax profit of N1.30 billion for the year ended 31 December 2025, representing a 13.19% decline from the N1.50 billion recorded in 2024.

The decline in profit came despite strong revenue and gross-profit growth, as higher administrative expenses, lower other income and finance costs weighed profitability.

According to the audited financial report released on NGX, revenue grew by 28% YoY to N5.25 billion compared to the N4.10 billion in 2024

Key Highlights (2025FY vs. 2024FY)

• Revenue: N5.25 billion (Up 28.07% YoY from N4.10 billion)
• Gross profit: N2.98 billion (Up 39.30% YoY from N2.14 billion)
• Operating profit: N1.42 billion (Down 5.16% YoY from N1.50 billion)
• Profit after tax: N1.22 billion (Down 11.09% YoY from N1.38 billion)
• Earnings per share: 9 kobo (Down 30.77% YoY from 13 kobo)
• Total borrowings: N2.23 billion (Down 2.55% YoY from N2.29 billion)
• Total assets: N38.05 billion (Up 66.08% YoY from N22.91 billion)
• Cash balance: N427.44 million (Up 1,876.97% YoY from N21.62 million)

Driving the numbers

Revenue increased by N1.15 billion during the year, while direct costs rose at the slower rate of 15.80% to N2.27 billion. This widened the group’s gross margin to 56.78% from 52.20% in the previous year.

• Equipment rental was the main driver of Japaul Gold’s group revenue growth in 2025. Revenue from the segment increased by 30.52% to N5.17 billion from N3.96 billion and accounted for 98.30% of total group revenue.
• Chippings and crushing revenue declined by 38.55% to N89.57 million from N145.77 million, contributing only 1.70% of group revenue. No dredging revenue was reported in either 2025 or 2024.

The improvement at the gross-profit level did not flow through to operating profit. Administrative expenses increased by 87.68% to N1.66 billion from N885.31 million, while other income fell by 58.81% to N100.05 million.

• These movements reduced the operating margin to 27.06% from 36.54%.
• Net finance costs of N120.33 million were also recorded, compared with no finance costs in 2024. As a result, the pre-tax profit margin fell to 24.77% from 36.54%.

The income-tax charge declined to N78.59 million from N123.78 million, limiting the decline in profit after tax to 11.09%.

The balance sheet

The balance sheet expanded substantially as total assets increased by 66% to N38 billion with non-current assets accounting for 57.30% of total assets.

• Exploration and evaluation assets increased by N3.44 billion to N11.40 billion; 29% of total assets.
• On current assets, trade and other receivables rose by 19.71% to N7.08 billion. The accounts also recorded N8.74 billion in call-in arrears, compared with no corresponding balance in 2024.
• Liquidity improved, with current assets of N16.25 billion exceeding current liabilities of N12.87 billion. This produced net current assets of N3.38 billion, reversing the net current-liability position of N4.39 billion reported a year earlier.

On the equity side, total equity increased by 158.44% to N20.61 billion from N7.98 billion.

• The increase was driven largely by additional contributed capital, as share capital rose to N7.13 billion from N5.13 billion, while share premium increased to N31.35 billion from N21.84 billion.
• The company’s accumulated loss also narrowed to N17.87 billion from N19.00 billion.

The audited statements linked the increase in share capital to the issuance of 4 billion ordinary shares under a private-placement arrangement involving a promissory note and debt-swap transaction.

Market reaction

Japaul Gold closed at N3.24 on 10 July 2026, up 2.21% from the previous closing price of N3.17.

The stock had gained 40.26% year-to-date from its opening 2026 price of N2.31 and was up 15.71% month-to-date as of the pre-results reference date. Its market capitalization stood at approximately N46.21 billion.