CWG turns profitable on strategic IT solutions, posts 128bln PAT

Computer Warehouse Ggroup (CWG) Plc’s strategic focus of deploying technology solutions has improved its annual financial outlook as a Pan-African Information and Communication Technology (ICT) conglomerate. The Company has recovered from a loss position of N1.80 billion in 2015 to achieve a growth of 107 per cent profit after tax (PAT) in 2016, according to its full-year financial results for 2016 released at the weekend.

Although there was a downward trend in revenue from N16 billion in 2015 to N10 billion in 2016, the Group’s rose 8 percentage points from16 per cent in 2015 to 24 per cent in 2016. Administrative expenses significantly declined by 41 per cent from N4.4 billion in 2015 to N2.61 billion in 2016, on strategic cost optimisation initiatives adopted by the Management, the mitigation measures instituted against foreign exchange losses, the absence of income reversals and non-recurrence of inventory write-offs.

Similarly, the company’s finance cost fell by10 per cent to close at N153 million in 2016 compared to N170 million in 2015, on reduced borrowings and improved receivables collections.

The company’s bottom-line was positively impacted, as the group closed with a PAT of N128 million in 2016, a surge in earnings after a group loss of N1.80 billion recorded in 2015.

Analysts say the Group’s focus on profitable Information Technology solutions, reduced exposure to foreign exchange fluctuations, and predictable recurrent revenues caused the company’s profit growth.  CWG has also leveraged local initiatives to run its business, making it resilient against the country’s foreign exchange-induced economic recession.

As part of its strategic focus to engender efficiency in its operation and cut cost for its clients, especially in the Banking Industry, CWG Plc recently announced that it would offer the Infosys Finacle Banking Solution as a Managed Service on cloud. This offering will enable Nigerian banks to leverage Finacle’s industry-leading solution suite, along with other enterprise-class applications hosted on a private cloud.

Kunle Ayodeji, chief operating officer, said the new solution will enable Banks running Finacle to optimise Infrastructure and Technology Management costs, while assuring agility and flexibility to scale operations rapidly.

He explained that with the new offering, hosted on a private cloud, Finacle becomes the first comprehensive banking platform to be available as a Managed Service on cloud in Nigeria.

Modestus Anaesoronye