Chams Holding reports 218% profit surge on increased demand

Chams Holding Company Plc, a technology solution firm in its unaudited financial statements for the year ended December 31, 2024, reported a 218 percent increase in its after-tax profit driven by increased demand.

This is despite macroeconomic headwinds that dealt a blow and ruffled many companies’ balance sheet last year, demonstrating the over three decades firm’s resilience amid pressures.

The company reported an after-tax profit of N1.3 billion in 2024 from N407.6 million recorded in 2023. This growth underscores Chams Holding’s strategic initiatives and operational efficiency, contributing to a robust bottom line.

In revenue, the company reported a 53 percent increase, rising from N9.47 billion in 2023 to N14.51 billion in 2024.

The rise in revenue was driven by strong performances in its printer solutions & access segment (N7.31 billion) and card personalisation & printing segment (N6.48 billion), payment systems solutions (N239 million), and agency banking & mobile money operations (N475 million).

The cost of sales increased to N10.1 billion, up from N7.3 billion in 2023, reflecting the company’s expansion and increased business activities. Consequently, gross profit rose to N4.37 billion, representing an increase from N2.1 billion in the previous year.

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Chams Holding’s strategic cost management was evident in its administrative and marketing expenses which amounted to N1.54 billion and N274.1 million, respectively.

Despite these costs, the company reported an operating profit of N1.89 billion, more than doubling the N809 million recorded in 2023.

For shareholders, the results are particularly encouraging, with earnings per share (EPS) increasing from N4.53 kobo to N23.07 kobo, a significant rise reflecting the company’s profitability and value creation.

The company’s total assets grew to N21.08 billion, up from N18.9 billion. This was fueled by a combination of increased trade receivables (N6.7 billion), property, plant, and equipment (N3.3 billion), and cash and cash equivalents (N2.37 billion).

Despite the rise in total liabilities to N10.12 billion, the company’s net assets improved, increasing to N10.96 billion, a testament to its strong financial health. Chams also maintained a robust liquidity position, with cash and cash equivalents rising from N1.89 billion to N2.37 billion.

Total equity rose from N9.54 billion to N10.96 billion, indicating a stronger financial position.

The company has continued to invest heavily in technology and financial services, positioning itself for further expansion in Nigeria’s growing digital economy. The company’s investment in agency banking, mobile money operations, and payment systems solutions aligns with its strategy to deepen financial inclusion and leverage fintech opportunities.

The company also reported an N1.98 billion increase in long-term loans, which were used to fund expansion projects, technological upgrades, and strategic initiatives aimed at sustaining future growth.