InfoTech companies in lack-luster performance
Infotech companies that have released their Q1’17 results are E-Transact, NCR Plc, Chams Nigeria Plc and Computer Warehouse Group Plc (CWG).
Their combined revenue for the quarter rose moderately by 13.8 per cent to N7.4 billion, but total pre-tax tax profit declined sharply by 79 per cent to N76 million. Compared to the inflation rate, the sector recorded negative revenue growth.
The sector accounted for a meager 0.4 per cent of total revenue and 0.2 per cent of the total profit of the set of 62 companies under review.
In terms of percentage growth in revenue, E-transact led with 25 per cent growth to N2.8 billion, accounting for 38 per cent of the sector’s revenue and 1.03 per cent of total revenue of the 62 companies.
NCR came second with 16 per cent revenue growth to N1.95 billion, accounting for 26.4 per cent of the sector total and 0.1 per cent of the 62 companies’ overall turnover.
CWG was the only company that recorded growth in profitability with 93 per cent increases in pre-tax profit to N27 million in Q1’17.
Chams slipped into loss of N89 million during the quarter.
Meanwhile construction/Real Estate Sector still in red, and only three companies have released their Q1’17 results namely UPDC Plc, Abbey Plc and Julius Berger Construction Plc.
The combined revenue stood at N36.5 billion, up marginally by 6.7 per cent from N34.2 billion.
The sector accounted for 1.9 percent of the total revenue of the 62 companies under review.
UPDC recorded highest revenue growth in percentage terms growing by 189 per cent to N1.97 billion, while Abbey Building came second with 8.6 per cent revenue growth to N338 million. Julius Berger Plc recorded marginal growth of 2.7 percent to N34.5 billion. However, the construction giant, Julius Berger recorded the highest revenue in absolute term, accounting for 93 per cent of the sector’s revenue but just 1.9 per cent of the total revenue of the 62 group of corporates.
UPDC came second, accounting for 5.2 per cent of the sector’s revenue. On profitability, only Abbey Building recorded positive growth of 109 per cent, with a pre-tax profit of N19.9 million.
UPDC recorded more losses, which rose to -N1.2 billion while Julius Berger reduced its losses to -N17.1 million from N1.1 billion in Q1’16.