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Chams records 115.3% growth in profit

By on April 13, 2014

Chams Plc has released its financial results for full year 2013, posting a 115.3 per cent growth in its profit after tax for the period.

According to the identity management and payments transaction company, its PAT rose from N87.5m in 2012 to N188.5m in the period under review.

The result showed that Chams Plc’s revenue grew by 21.3 per cent, rising from N2.84bn in 2012 to N3.44bn in 2013, while its total assets rose by 22.9 per cent to N10.7bn in 2013, from N8.7bn the previous year.

The company’s shareholders’ funds rose from N4.5bn to N4.7bn, reflecting a five per cent increase in the period under review, while its earnings per share at N0.07 was more than twice what was recorded in the corresponding period of 2012, according to the firm.

Chams Plc explained in a statement that the results were indicative of strong quality of products and services that had emerged from its operations in the last two years.

These products and services, it added, led to significant growth of its market share in the identity management and payments transaction business.

The statement, quoted the Group Managing Director, Chams, Mr. Ademola Aladekomo, as saying, the performance in the period was a proof that the recent initiatives implemented by the company were yielding positive results.

He said, “To come from a loss position in the last three years to profitability is quite commendable and we are confident that things can only become better for us. More gratifying is the fact that we have sustained our topline growth trajectory, an indication that we have continued to increase our market share and remain competitive.”

Also, the company’s Group Deputy Managing Director, Mr. Olufemi Williams, was quoted as saying its prospect was very bright.

He said, “The bulk of our revenue comes from identity management, which is our area of specialty. You will observe that the performance of the company itself was better than what was recorded at the group level.

“For instance, from a revenue figure of N3.1bn, the company generated an operating profit of N846.1m, representing a margin of 27 per cent. This enabled us to achieve a net profit of N732.3m (profit margin of 23.3 per cent). You can see that we have a very profitable core business, and this is why we have set targets for ourselves to restructure our non-core businesses.”

[Punch]