The liquid assets of CWG Plc, an information and communication technology company, surged 16-fold within a year, according to BusinessDay analysis.
The company’s latest financial statement shows that its cash and cash equivalents rose to N1.76 billion last year from N105.8 million in 2022.
Cash equivalents are investment securities that are meant for short-term investing. They have high credit quality and are highly liquid.
Read also: CWG’s liquidity surges over 14-fold, hits N1.5bn
Furthering analysis from the statements revealed that the 1,500 percent growth in cash and cash equivalents was driven by cash at the bank worth N1.96 billion, restricted cash worth 139.2 million, cash in hand worth N5.7 million, and short-term deposit worth N25,000 while bank overdraft deducted amounted to N342.4 million.
Movement in cash and cash equivalents shows that net cash from operating activities stood at a positive N1.82 billion from a negative N358.1 million while net cash from investing activities stood at a negative N416.2 million from a negative N316.7 million.
Net cash from financing activities grew to N166.4 million from N153.3 million during the period reviewed.
CWG, a provider of ICT solutions services across West, Central, and Eastern Africa, has also recorded 56 percent growth in other income to N110.6 million in 2023 from N70.8 million in 2022.
The firm’s revenue grew to N23.3 billion from N14.2 billion while the cost of sales increased to N18.7 billion from N10.4 billion.
Revenue from IT Infrastructure services contributed N11.6 billion to the total revenue last year, managed and support services contributed N6.9 billion, software revenue contributed N3.8 billion, revenue from platform business contributed N881.6 million, and communications and integrated contributed N85.7 billion.
Retained earnings increased to N817.7 million from N323.6 million.
Operating expenses increased to N3.5 billion from N2.8 billion. Interest and finance charges rose to N75.1 billion from N55.9 billion.
Trade and other payable increased to N11.7 billion from N9.7 billion. Other payables surged to N5.2 billion from N4.01 billion.
Short-term loans and borrowing grew to N2.1 billion from N1.8 billion, driven by interest-bearing loans and borrowings of N1.79 billion, bank overdraft of N342.4 billion.
Read also: CWG assures shareholders of sustained growth
The firm paid N328.4 million as income tax in 2023 from N264.6 billion income tax in the same period of the prior year.
Its after-tax profit rose to N595.1 million from N476.8 million. Total assets grew to N18.1 billion from N14.5 billion.
CWG’s total liabilities increased to N16.5 billion from N13.1 billion during the period reviewed.
Prepayment dipped to N504.8 million from N1.32 billion. CWG’s prepayment was driven by a project cost of N304.9 million, other prepayments of N179.2 million, and staff advance of N20.6 million.
CWG is a Pan-African systems solutions company that specialises in a wide array of IT services including communications, and integration services, infrastructure services, managed and support services, cloud services, and software.
