Distinguished Shareholders, Ladies and Gentlemen, it gives me great pleasure to welcome you to the 35th Annual General Meeting of our company, Chams Plc. I shall be presenting to you the annual report for the financial year ended 31st December, 2018.
BA CK GROUND
Managing the effects of recession over the previous years required strategic moves towards ensuring that we drive our strategies to positive note. The economic statistics released by the Nigerian Bureau of Statistics (NBS) indicated that the economy improved in the first half of year 2018 specifically. In Q1 of 2018, the GDP growth rate stood at 1.94 per cent compared to the 0.82 percent recorded in the previous year. The delay in budget signing affected the implementation, thus leading to the fall in the GDP rate to 1.51%. However, the GDP grew to 1.81% in Q3 and further to 2.38% in Q4.
Though there were slight fluctuations in the crude oil price in the course of the year, the oil price averaged $66.15 per barrel which is an improvement compared to $49.9 in 2017. The exchange rate of the Naira to the dollar remains flat at about N361 as a result of the continued intervention of the Central Bank of Nigeria (CBN) in the market. This largely mirrored further improvement in the non-oil sector.
The Information Communication Technology (ICT) sector attracted increased Foreign Direct Investment (FDI) from $32 billion in 2015 to $40 billion in 2018. The market overview and trade data for the ICT industry recorded an estimated total market size of $109 million which included a total local production of $3.9 million and total importation of $105 million.
The gross external reserves stood at US$43 billion as at December 2018 and according to the Debt Management Office (DMO) of the Federation, Nigeria’s total debt stock rose from N21 trillion in 2017 to about N22.4 trillion as at September 2018 and N24.4 trillion as at December 2018.
The year 2018 started on a good and firm progress with positive indices that assured sustainability of positive growth. We are hopeful that in 2019 continued growth will be sustained towards making over 100% progress.
The group recorded growth in various performance indices compared to last year.
- The Gross revenue grew by 54 percent, from ₦1.96 billion in 2017 to ₦3.01 billion in 2018.
- Group Profit-Before-Tax grew by 124 percent, from ₦1.24 billion loss recorded in year 2017 to ₦302 million profit in 2018.
- Profit-After-Tax thus jumped by a whopping 130 percent during the period, from ₦1.27 billion loss after tax in 2017 to ₦380 million profit in 2018.
- The Group total assets similarly rose by 10 percent, from ₦4.77billion in 2017 to ₦5.25 billion in 2018,
- The total liabilities dropped by 14 percent during the same period, from ₦4.2 billion to ₦3.6billion.
- Finally, Group shareholders’ fund grew impressively by 187 percent from previous year figure of ₦0.57 billion to ₦1.6 billion in 2018.
BAL ANCE SHEET RESTRUCTURING
Pursuant to the Shareholders’ approval to restructure the books of the Company at the 2018 Annual General Meeting, the Balance Sheet Restructuring scheme was completed and filed with the necessary regulatory bodies. The scheme has helped to lay the foundation for better performance for the Company, improved its competitiveness in the ICT sector/industry and the potential for the Company to pay dividends.
In order to meet the expectation of all our shareholders and stakeholders who have patiently waited for improvement in the overall performance of the Company, the Company has declared a dividend of N3k per share. We hope to do more in the subsequent years.
THE BO ARD OF CHAMS PLC
In the course of 2018, I am happy to inform you that on requisite approval, Alhaji Yusufu Modibbo was appointed as a Non-Executive Director of the Company. He has over 30 years’ experience in Banking, corporate finance, stock market operations and portfolio management both in the public and private sector. Details of his Curriculum Vitae are stated on the Company’s website.
We will concentrate on the strategies that have given us the greatest dividend and that will drive the vision of the Company. In line with our vision, we are set to achieve the continued delivery of excellent services to our customers and ultimately ensuring that our shareholders are rewarded.
In 2019, we plan to consolidate on the progress made in the previous years to deliver a strong and sustainable performance that enhances returns to our shareholders. We are marching forward in the year with confidence and optimism, knowing fully well that our businesses have been strategically positioned to take advantage of key opportunities as we stay on course in the execution of our growth strategy.
As we continue our transformation journey in 2019, we acknowledge the challenges that may be posed by the rapidly changing geopolitical and social economic dynamics, hence we are committed to our core focus of providing Innovative and Intelligent Business Solutions to our customers both in public and private sectors of the Nigerian economy.
In conclusion, on behalf of the Board and Management of the Company, I wish to thank our esteemed shareholders for their patience, support and perseverance all through the years.
I sincerely appreciate the members of the Board for their support and cooperation this past year and our management team and the staff for their diligence, professionalism, tenacity and sacrifice towards ensuring that organizational goals and objectives are achieved.
The Board remains committed to delivery of improved performance and in order to further reiterate these promises, we have been able to translate this performance to payment of dividend this year and we further commit ourselves to exceeding your expectations come year 2019.
God bless you all.
God bless Chams Plc
God bless Nigeria
Dr. (Mrs) ‘Dere Awosika MFR, mni