CWG Plc, a Pan-African Information and Communications Technology with operations in four African countries, has explained how the ‘Work from Home’ initiative, occasioned by the ravaging Covid-19 pandemic aided its 2020 financial results.
CWG Plc audited financial results ended December 2020, which was released by the Nigeria Stock Exchange (NSE), had shown an impressive N437M Profit After Tax in its 2020, a far increase from a Profit after Tax of N73 million in its 2019 full-year financial results. The results also showed a revenue increase of N11.81 billion, representing 23.4 percent Year on Year.
Speaking on what was done differently from the past to record such financial results, Dapo Akinsipe, Head of Treasury at CWG, explained that the Work from Home ”WHF” initiative by the company’s Head of Human Resource had an impact on cost savings on diesel, stationeries and travel expenses.
Other steps taken to boost the financial results, according to him are the renegotiation of all interest rate with CWG’s bankers, increase revenue achieved, cut capital expenses, close monitoring of general administrative expense and change in cash cycle by tightening receivables.
“As a company, we decided to reduce fixed expenses and prioritize suppliers as critical and non-critical,”
He stated that to sustain the momentum in 2021 and going forward, CWG will further reduce the cost to income ratio and equally determine the processes critical to continue operations and processes that can be suspended temporarily.
Meanwhile, as one of the biggest private sector players in the Nigerian economy, CWG has advised the federal government reduce import dependency on the nation’s economy and improve the efficiency of the Power holding company of Nigeria Plc, among others.
“There is no doubt that expensive and unviable power continues to be a major concern to all industries in the sector. So for the economy to thrive, the government needs to reduce import dependency and improve power efficiency,” Mr. Dapo advised.