CWG PLC Grows Revenue By 22% TO N11.7bn in 2020
The performance of CWG Group for the year ended December 31, 2020, shows stability across all business metrics despite the disruptions experienced globally as a result of the COVID-19 outbreak.
Speaking on the financial performance of the Group at its 16th Annual General Meeting (AGM) today in Lagos, the Chairman of the Board, Mr. Philip Obioha, said the group ended the year with net revenue of N11.7 billion which is 22% higher than the prior year’s income, and a gross profit of N2.6 billion which is 13% over N2.3 billion figures of 2019.
The Chairman attributed the improved revenue and gross profit to gains from the decision taken in 2019 to re-invest in some of the group’s platforms and subscription business.
According to him, “We increased our capacity and staff enablement to provide customized development and consulting services on specific platforms and market segment. The Company also invested a lot of time and resources to our innovation Hub. We engaged skilled developers and came up with a compelling value proposition and product roadmap for most of our Software Applications.”
In his statement at the AGM, the Managing Director/Chief Executive Officer, Mr. Adewale Adeyipo, said “year 2020 was extraordinary and challenging in many ways as the world experienced an unusual occurrence that enveloped the entire globe and changed our world permanently.”
On the performance of the group, he said 2020 was a year that they delivered significant milestones despite the disruptions experienced globally.
“We achieved healthy growth across all our major businesses. Our financial results reflect robust underlying performance and leadership positions across virtually all our activities,” MD/CEO said.
He said with the reduction in administrative expenses of 21% and a considerable profit after tax (PAT) growth rate of 509% in 2020 over 2019, year 2020 recorded better efficiency compared with 2019 despite the effect of the pandemic on the economy.
On liquidity, Mr. Adeyipo said the Group’s liquidity position remained positive, with a significant growth when compared to 2019, adding that “our cash flow from operation stood at N1.1 billion, and this represents 57% growth over 2019. Cash and cash equivalent at the end of the year at N825 million shows our resilience during the pandemic.”
On growth, the MD/CEO said the business recorded overall growth in revenue by 22% against the previous year, noting that “the better revenue was growing our platform and subscription business, extending the company’s service portfolio and new partnerships. The Group ended the year with record profitability and significant market share gains across all our operating geographies, which indicates the remarkable improvements and resilience built into each operating entities despite the impact of the pandemic on businesses across the world…”
He said in 2020, CWG sustained it promise to champion the development of technology that enables growth in Africa.
Adeyipo said the application of globalised strategies to improve the CWG brand visibility and awareness was rewarding, adding “CWG received the Infosys Finacle’s Regional Alliance FY20 award for the Middle East and Africa.”
He said to further reinforce the group’s local capacity at the Nigerian Technology Awards, CWG was recognized as the Software Provider of the year, Excellent in cloud infrastructure Development, Tech Service and Support company of 2020.
He said the company remains focused on being trans-generational and evolving with emerging global trends that foster Africa’s growth at large.
