• Tuesday, July 16, 2024
businessday logo


Three listed tech firms see nine-month profits jump to N2.4bn

Three listed tech firms see nine-month profits jump to N2.4bn

The combined after-tax profit of three Nigerian tech firms listed on the Nigerian Exchange Limited (NGX) almost doubled within a year, a BusinessDay analysis shows.

The latest financial statements of eTranzact International Plc, Computer Warehouse Group (CWG) Plc and Chams Plc show that their combined after-tax profit rose to N2.39 billion as of September 2023 from N1.39 billion a year earlier.

The firms’ total revenue also grew by 75.2 percent to N51.5 billion from N29.4 billion during the period.

“Chams, eTranzact and CWG are tech-listed firms, their books are open, and till date haven’t evaporated with investors funds,” Olumide Adesina, a financial market analyst, said on X.

“If you invested a million naira in Chams, a [Nigerian] listed tech stock in the start of 2023. Your investment is now worth at least nine million naira after the brokerage fee,” he said.

Other tech firms such as Courtville Business Solutions Plc recorded an after-tax loss of N25.3 million from an after-tax profit of N113.3 million.

NCR (Nigeria) Plc also had an after-tax loss of N1.4 billion from a loss of N760.4 million. And Omatek Ventures Plc reported an after-tax loss of N308.3 billion from a loss of N741.6 billion.

BusinessDay analysis also revealed that eTranzact recorded the highest investment income of N289.3 million at the end of the first nine months of 2023, followed by Chams with N106 million. CWG did not record investment income during the period reviewed.

In a bid to attract more tech companies to list their shares, the NGX announced in February 2022 that it would revise listing rules to make them startup-friendly.

According to a recent report by PwC Nigeria, the listing of tech startups on the NGX provides opportunities for growth and success.

It said the opportunities are improved governance, transparency, funding, talent retention, and long-term sustainability.

“Albeit the growing tech sector in the Nigerian economy and significant private funding secured by African tech start-ups, over the years the tech sector is grossly underrepresented in the Nigerian capital market,” the report said.

It added that out of the 157 companies listed on the NGX, only nine companies with a combined market capitalisation of circa N11 trillion are technology-based companies (excluding traditional banks which have incorporated technology into their operations).

“As at December 31, 2022, the top 10 companies by market capitalisation on the NGX were dominated by Information Communication Technology and Industrial goods companies accounting for 70 percent of the total market capitalisation.”

Analysis of data from individual firms



eTranzact’s after-tax profit rose to N1.6 billion at the end of the first nine months of last year from N817.9 million as of September 2022.

Revenue surged to N25.7 billion from N16 billion. Input cost also increased to N20.4 million from N12.6 million.

The firm recorded other operating income of N2 million while no other income was recorded in the previous year.

Administrative expenses rose to N3.2 billion from N2.3 billion. Investment income grew to N289.3 million from N192.8 million.

However, cash and cash equivalents dipped to N10.8 billion from N12.3 billion.

eTranzact, an electronics payments solution provider has operations in Ghana, Kenya and Zimbabwe. It also has operations in Cote d’Ivoire and the United Kingdom.

The firm started in September 2003. Its solutions cover all aspects of payment which include ATM, Internet, POS, and Mobile.

The firm has deployed its mobile payment solutions to banks and non-bank financial institutions. Its solutions cut across government and education sectors. It also has solutions for the travel and transportation industry.


CWG’s after-tax profit grew to N534 million as of September 2023 from N432 million in the same period of 2022.

Revenue increased to N18.3 billion from N10.2 billion. Input cost climbed to N14.9 billion from N7.6 billion.

Other operating income dipped to N33.6 million from N36.2 million. Administrative expenses rose to N2.5 billion from N1.9 billion.

The firm did not record investment income during the period reviewed. Cash and cash equivalents surged to N1.5 billion from N105.8 million.

CWG is an integrated hardware, communications and software organisation. It provides varied IT services including cloud and managed services.

It also provides IT infrastructure and training services. CWG began operations in 1992. The firm now has regional offices across Africa. It got listed on the NGX in 2013

The firm started as a re-seller for Dell in its early days. It also had top clients like MTN Group, ExxonMobil, & Unilever. Other clients also included Cadbury, Nestle, Shell and so on.


Chams’ after-tax profit rose to N255.1 million at the end of nine months of 2023 from N135.8 million in the same period of 2022.

The firm’s revenue increased to N7.5 billion from N3.17 billion. Input cost surged to N5.7 billion from N2.6 billion.

However, other operating income dipped to N13 million from N142.4 million while the firm recorded a surge in administrative expenses to N1.5 billion from N845.7 million.

Investment income increased to N106 million from N53.3 million. The firm’s cash and cash equivalents rose to N3 billion from N1.6 billion.

Chams provides integrated identity management and payment solutions. The company was incorporated in 1985. It started as a private business before it went public. It initially started as a computer hardware and maintenance firm.

It has worked with government agencies to deploy its identity management solutions. It has worked with Nigeria’s electoral commission INEC and NCC. NCC is the Nigeria Communications Commission.

Chams has also worked with state governments. Furthermore, Chams was a part of the BVN project. BVN means Bank Verification Number. The project was steered by Nigeria’s Central Bank.