Computer Warehouse Group Plc has assured investors in the company of improved returns after releasing its unaudited results for the half-year period ended June 30, 2015.
The pan African Information and Communications Technology firm’s unaudited results showed that its revenue grew by 2.4 per cent to N8.6bn in the review period from N8.4bn in the corresponding period of 2014.
However, CWG disclosed that its margins were squeezed from 20 per cent in 2014 to 14 per cent in 2015 due to the fact that it could not pass its increased costs to customers.
The company recorded a loss after tax of N350.6m, which it attributed to the challenging business environment and foreign exchange losses of N277m, among other things.
The Executive Director, Finance and Operations, CWG, Mr. Kunle Ayodeji, explained that the operating environment had remained very challenging in 2015, causing the firm to suspend new capital expenditure and investments.
He, however, said that CWG was focusing more on its subscription business, which had increased margins and was less exposed to the macroeconomic challenges.
The Chief Executive Officer, CWG, Mr. Austin Okere, was quoted in a statement as saying that the outlook for the company remained bright.
This, he explained, was because the products under its subscription business were designed to withstand macroeconomic shocks.
Okere had recently explained that yields from CWG’s subscription business were on the rise with a new model adopted in the second half of 2015.
The products under the new business model include the CWG-SMERP, the cloud-based Enterprise Resource Planning product for Small and Medium Enterprises, and Openshopen.ng, which is an eCommerce technology platform.
Others are CWG-SES teleport services, which provides digital satellite broadcast and cloud solution for micro finance institutions in partnership with MTN; CWG’s Mobile Financial Services in partnership with CIT Vericash; and Finedge Solution, which has powered the Diamond Yello Account.
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Source : Punch