The strategic restructuring of a frontline identity management and transaction provider, Chams Plc has begun to pay off with its N0.380 billion after tax profit in December, 2018, an increase of 130 percent as against N1.27 billion loss in the preceding year.
The company’s Earnings Per Share (EPS) stood at 7Kobo in the review period, Total Assets amounted to N5.25bn, compared with N4.77bn in 2017, 10 percent growth while total liabilities reduced by 14 percent, to N3.60bn from N4.20bn in 2017, due to internal efficiency.
Chams had in 2018 restructured its operations for global competitiveness, including a change in business model, placing premium on identity management and introduction of innovative products and services.
Commenting on the historic performance, Chams’ Group Managing Director and Chief Executive Officer, Mr. Femi, Williams ascribed it to the positive effects of the management’s determination to revamp the company’s operations for enhanced profitability in other performance indicators.
“ This result is a testament to the group’s dedication to revamping the fortune of the company, coming from a loss position to record this impressive performance is the first step in our arsenal of strategies lined up for deployment this year. As can be seen from the result we recorded a growth of 54% in Revenue Year- onYear, while we grew Profit before Tax by 124%. I would like to assure all our investors and shareholders that we would not rest on our oars as we would keep firing from all cylinders in order to maintain and surpass this performance by the end of the fiscal year 2019.
Williams stated further that “This performance was the result of the group’s doggedness and the pragmatic approach we have adopted in tackling the array of issues that have plagued us and our industry for a long time now. This result is the first of many of its kind, and the group is committed to delivering optimum values to its stakeholders.”
The company’s profit Net Profit margin increased the back of the 54% growth in revenue while the finance expenses declined by 34% in the review. Revenue grew by 54% as against that of the prior year as a result of increased income from Identity management services, sales, maintenance of BVN services, supply of cards, sales of the Access control as well as income from switching service.
Other Operating Income recorded massive increase largely due to amount recovered from impaired receivables, and rental income. Also, Cost of Sales increased by 84% . The increase was spurred by the corresponding increase in turnover, cost incurred on data cards equipment, cost of BVN equipment, as well as cost incurred to supply cards.
Chams Plc (Chams) is a Nigeria-based identity management and transaction systems provider. The Principal activities of the company and its subsidiaries include identity management, payment collections and transactional systems. The company operates through three core segments: Payments, Collections and Transactional systems, ICT Training and Identity Management and
The company’s identity management activities include Biometrics identification with applications in the financial sector, Pharmaceutical sector, Agent network, e-Commerce for corporate and other public fields. Its payments activities cover; Collections and Transactional systems segment, these services are provided through its subsidiary companies such as ChamsAccess Limited, ChamsSwitch Limited, Cardcentre, ChamsMobile Limited and Paymaster.