CWG’s shareholders optimistic as profit rises

Kayode Tokede

The shareholders of CWG plc, yesterday in Lagos requested of the board and management to consider dividend payout following an impressive 2021 financial year growth in revenue that impacted on N449.64million profit before tax from N443.15million reported in 2020.

Speaking at the company’s 17th Annual General Meeting (AGM), the national coordinator of passionate shareholders of Nigeria, Mr. Abayomi Adebayo noted that the company reported an impressive growth in revenue that impacted on profit before tax
He hinted that, “What the impressive 2021 financial year results, I believe very soon, dividend will be paid to shareholders.”

Another shareholder at the meeting, Alhaja Ikudaisi commended the management for posting impressive 2021 results, demanding to know when the management is going to reward shareholders who invested in the company.

According to her, “One important aspect is missing in the company’s 2021 financial statement and that is dividend payout to shareholders.”
“How soon are shareholders expecting a dividend payout?” she questioned.

Responding, the Chairman, CWG Plc, Phillip Obioha, said, “The trend at where the company is coming; the losses and where we are now, you will see it is telling a good story. We are almost at the end of turning the company around.

“The Group Managing Director and his team have done a great job in the turnaround of the company to where we are now. No matter how small it’s, we are determined to declare a dividend to shareholders. As long as we continue to have growth, we should be able to pay a dividend to shareholders.”

He noted that the company is having problem with foreign exchange scarcity, stressing that a lot of initial controls are put in place to minimum the losses
He added that, “There are hedging structures and other things that have been used to minimize the company’s exposure in foreign exchange losses.” 

According to him, the financial performance in 2021, was borne out of the various strategic initiatives, growth and expansion of the group’s products in payment systems and platforms.

The group performed creditably in the year as evidenced by the key financial metrics. It closed with a revenue of N11.71 billion, a gross profit growth of 10.5per cent, double digit profit before tax growth of 12.6per cent, and a return on average equity of 56per cent.
“This exceptional performance was largely driven by the well diversified revenue base, efficient management of operating cost and superior technological offering to its customers.”

He concluded that, “I have no doubts that the company, CWG-plc, is on the right path having taken the steps that would ensure a brighter and more sustainable and profitable future for her stakeholders.”

Speaking also, the Group Managing Director, CWG, Mr. Adewale Adeyipo said the financial performance in 2021 was borne out of the various strategic initiatives, growth, and expansion of the company’s IPs in payment and platforms.

According to him, “In 2021, we realized the benefits of our many partnerships with other technology brands and the organization’s focus on specific relevant products/ offerings that address customers’ technology needs post-Covid, which we themed “essentials.”

Ongoing forward, he said, “We will have little to look forward to, without the commitment of our people, who have understood and taken upon themselves the vision to innovate through technology. We have internalized the notion that the people, not just technology, drive innovation and growth. We aim to not only prioritize talent attraction but also to retain, develop and promote.

“As one of the leading technology companies in West Africa, which was historically fluid in organizational culture, we have established more structure with the board and hope to optimize our evolving culture to the greatness of our drivers – the employees.

“As we aspire for growth, our human resources will come under increasing pressure to deliver, acquire, grow and retain skilled professionals. We look forward to building and implementing an influential people strategy in the coming year.”