CWG Plc is working on a major long-term growth and development plan that would see the system integration company continuing as a leading operator over the next five decades.
At the Annual General Meeting held by virtual attendance through proxies, the company reviewed improvements in its operations and reassured shareholders on sustainability of its growth.
Chairman, CWG Plc, Mr. Phillip Obioha, said the company has been positioned to continue to innovate and create cutting-edge technology and services that will be relevant now and in the future.
According to him, CWG is well-positioned and equipped to redefine innovation that provides solutions to the technologically-based institution gaps that are seen in potentially viable and critical sectors of the Nigerian economy and Sub-Saharan Africa.
“In 2019, revenue and total profit growth were as a result of the renewed partnership with our strategic partners. Operating expense was reduced by 23 per cent, 2019 over 2018, due to different optimisation exercises that were carried out in the year.
We also closed 2019 with a positive earnings before interest, tax, depreciation and amortisation (EBITDA) of N892 million and profit before tax of N634 million.
Right now, we are charting a course of a new organisation that would be around for the next 50 years,” Obioha said.
Key extracts of the audited report and accounts of CWG for the year ended December 31, 2019 showed that the company’s gross revenue increased by 23.4 per cent to N9.6 billion in 2019 as against N7.8 billion in 2018.
The company recorded a positive earnings before interest, tax, depreciation and armotisation (EBITDA) of N892 million. Profit before tax stood at N634 million while profit after tax closed at N73 million.
The growth in revenue and profit was achieved with a reduction of 23 per cent in operating expenses. Meanwhile, net assets grew by 67.4 per cent to N192 million as against N115 million.
Obioha pointed out that the value-added revenue and gross profit were due to the re-introduction of some valuable information and technology services and an increase in customised service businesses.
Chief Executive Officer, CWG Plc, Mr. Adewale Adeyipo also attributed the performance in the 2019 financial year to the gains of the company’s ‘five pillars’ strategy, which was adopted two years ago. The five pillars included growth, profit, liquidity, brands and dividend.
He disclosed that strict adherence to the five pillars has helped CWG to deliver on its mandate to enable the growth of its clients.
“That is the level of focus we have delivered with the five pillars we created. If you also want to go to some certain deliverables; then we can begin to talk of our BillnPay platform presentment platform, which is an app of CWG 2.0.
On BillnPay last year, we recorded a transaction volume of over N12 billion, which is a major chunk of over 3000 per cent of what we had in 2018, 2017 and 2016 combined.
So, I can tell you that the underlining principles that have kept us focused are these five pillars,” Adeyipo said.
He added that these pillars have created an essential guide on what CWG does and how to do it, explaining that CWG evaluates every decision and determine what will be the contribution of the decision on any of these pillars.
“These pillars have enabled us to create some focus and clarity. It has given us insights on what we need to take seriously and what we need to stop doing. With these pillars, we measure the success or otherwise of our company,” Adeyipo said.