Strategic focus of CWG Plc on deploying Technology Solutions is improving the Annual Financial Outlook of the Country’s 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. Though, there was a downward trend in revenue from N15.61B in 2015 to N10.17B in 2016, the Group recorded higher gross margins from16 per cent in 2015 to 24 per cent in 2016. Its Administrative expenses significantly declined by 41 per cent from N4.41B in 2015 to N2.61B in 2016.
The drop was achieved through strategic cost optimisation initiatives adopted by the Management, the mitigated measures instituted against foreign exchange losses (2015:N600M), the absence of income reversals (2015:N250M) and non-recurrence of inventory write-offs (2015:N431M). In the same vein, its finance cost fell by10 per cent to close at N153M in 2016 compared to N170M in 2015 as a result of the conscious effort to reduce borrowings and improve receivable collections. The bottom-line was positively impacted, as the Group closed with a Profit after Tax (PAT) of 128M in 2016 compared to a Loss after Tax (LAT) of ₦1.80B in 2015.
Analysts say the impressive Profit Growth recorded by the Company last year was attributable to the Group’s focus on profitable Information Technology solutions with deliberately less exposure to foreign exchange fluctuations and with predictable recurrent revenues. With the 2016 results, Market Analysts say CWG exudes an impressive and promising outlook for Investors considering that some quoted Companies recorded a bearish trend following the economic headwinds in the country last year. According to them, CWG has also leveraged Local Initiatives to run its business, making it resilient to the hard economic recession, occasioned by forex scarcity.
As part of its strategic focus to engender efficiency in its operation and cut cost for its clients, especially in the Banking Industry, the largest Systems Integration Company in Sub-Saharan Africa, 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. Recall they advised that CWG is offering Finacle on private cloud, hosted on Huawei hardware and powered by Intel X86 chipset.
The new solution, according to the Chief Operating Officer, Mr. Kunle Ayodeji, 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. “Banks understand that technology is critical for simplifying banking to create sustainable business growth, but many are burdened unduly. “These legacy systems are simply not equipped to readily respond to change. A pain-free approach to banking transformation, with an adaptive solution at the core, will prove invaluable for banks looking to gear themselves for tomorrow. We are happy to offer Finacle on Cloud, as an adaptive solution to give Banks the leverage to innovate and transform,” Ayodeji said.