By Bamidele Ogunwusi and Gloria Ishaleku, Lagos
Computer Warehouse Group (CWG), a leading pan African ICT Company, has released its unaudited H1 2015 financial results for the period ended June 30, 2015 to the Nigerian Stock Exchange.
The company’s revenue rose slightly from N8.4 billion in the comparable period of 2014 to N8.6 billion. However, business margins were squeezed from 20 per cent in 2014 to 14 per cent in 2015, as the company was unable to fully pass increased costs to her customers.
There was a 7 per cent increase in operating expenses to N1.4 billion from N1.3 billion in 2014, due largely to one-off restructuring expenses taken by the company
The results reflect the continued difficulty of the Nigerian business environment in 2015. With a significant segment of the company’s business dependent on international procurement, the difficulties of foreign exchange sourcing had a negative impact on the results.
In particular, the half year result was affected by the recognition of foreign exchange losses of N277 million and the write-off of N103 million, arising from the cancellation of a transaction duly recognized in the last quarter of 2014. However, the company finished with a strong cash position of N1.3 billion at the end of the quarter.
Source : Independent