CWG records decline in 2014 half year financial reports

The company said the decline was due to its business refocus and restructuring, where the company is moving from traditional IT services provision to cloud-based services.“This became manifest as the company recently paused to evaluate the progress achieved and the impact on its hitherto traditional business, underpinned by technology sales and support to major enterprises […]

The company said the decline was due to its business refocus and restructuring, where the company is moving from traditional IT services provision to cloud-based services.
“This became manifest as the company recently paused to evaluate the progress achieved and the impact on its hitherto traditional business, underpinned by technology sales and support to major enterprises in Africa”, an official said.
According to the Financial Controller, CWG, Mr. Remi Adeloye, “CWG’s 2014 first half of the year revenue of N8.3 billion is 16 per cent below 2013 N9.9 billion, while Gross Profit N1.6 billion is 23 per cent below 2013 N2.1 billion.”
Adeloye said the lower H1 revenues was a reflection of the continued decline in margins on traditional IT infrastructure business due to commoditisation and competitive pressures, as well as viable alternatives in the cloud computing frontier.
He said: “The financial position of the group remains strong with adequate liquidity, leverage and efficiency ratios. H1 2014 Current ratio improved to 1.5 as against H1 2013, which was 1.4 signifying strong liquidity and adequacy of working capital to meet transactional needs.
Emphasising the imperative in the shift in strategy, the Chief Executive Officer, Mr Austin Okere said CWG’s leverage debt to equity ratio remains low at nine per cent as against 10 per cent in 2013.
 According to him, the dip in its first half-year numbers, while, expected will be more than compensated for when the full import of CWG2.0 comes fully on stream by second half-year number by 2015.