Chams plc saw its profit rebound from a 3-year consecutive loss streak as the company hit a 5-year high profit level on a surge in its revenue for the period 2018.
As released on the Nigeria Stock Exchange (NSE) market, profit after tax for the period surged 130 percent from a loss of N1.26 billion in 2017 to settle at a profit of N380.14 million in 2018.
Profit was boosted by a surge in revenue and operating income for the period. Meanwhile, Chams plc was able to cut significantly its expenses.
Revenue surged by 54 percent to N3.012 billion in 2018 against N1.95 billion recorded in 2017. This was largely contributed to by BVN sales and maintenance which saw proceed increase by 89 percent to N1.02 billion from N540.81 million, which accounted for 34 percent of total revenue for the period.
Five-year revenue trend shows that 2018 revenue is the highest level since 2015. However, over the last five years, revenue has declined annually at an average of 6 percent.
Meanwhile, total expenses during the period declined by 38 percent to N1.3 billion in 2018 against N2.12 billion in 2017. Administrative expenses decline by 38 percent to N1.31 billion while interest expense on loans and overdraft reduced by 34 percent to N15.7 million in the period under review.
Chams Plc provides integrate identity management systems and verification platforms in Nigeria. The company operates in three segments: Identity Management and Solutions; Payments, Collections, and Transactional Systems; and ICT Training.
The Identity Management and Solutions segment provides identification solutions for corporations, educational bodies, and government.
Shares of Chams plc has remained flat at N0.20 year to date with a market capitalization of N939.21 million.
DAVID IBIDAPO
