Nigerian technology firm CWG Plc has delivered a robust financial performance for the 2025 fiscal year, posting a pre-tax profit of N7.8 billion—an increase of 78.4% compared to N4.4 billion recorded in 2024.
According to its audited results filed on the Nigerian Exchange, the growth was largely underpinned by a strong expansion in revenue, which rose by 41.4% year-on-year to N65.5 billion.
Revenue Growth Across Core Segments
A breakdown of the company’s earnings shows that IT infrastructure services remained the largest contributor, generating N23.5 billion. Software sales followed closely at N21.3 billion, while managed support services accounted for N18.7 billion, reflecting balanced growth across CWG’s key business lines.
Profitability Strengthens Despite Rising Costs
Cost of sales increased to N49.6 billion, up 36.1%, but was outpaced by revenue growth, pushing gross profit to N15.9 billion—a 61.1% jump from the previous year. Other income also surged significantly by 151.8% to N598.1 million, largely driven by sundry income streams.
However, administrative expenses climbed to N8.4 billion, reflecting higher operational costs, particularly staff-related expenses estimated at around N4 billion. The company also recorded exchange losses of N605.2 million, a reversal from a gain posted in 2024.
Despite these pressures, operating profit rose 69% to N7.5 billion, highlighting improved operational efficiency.
Improved Financial Position
Finance costs declined to N61.1 million, while finance income rose sharply to N421.2 million, supporting overall profitability. This culminated in a pre-tax profit of N7.8 billion and a post-tax profit of approximately N5.0 billion, up 63.4% year-on-year.
On the balance sheet, total assets increased by 33.4% to N39.9 billion, driven largely by higher receivables. Retained earnings rose to N7.4 billion, while total liabilities climbed to N31 billion from N23.3 billion.
Dividend Payout and Market Performance
In line with its improved earnings, CWG declared a final dividend of 70 kobo per share, representing a 79% increase year-on-year. The dividend is scheduled for payment on April 17, 2026.
While the market has yet to fully respond to the results, CWG’s stock has gained over 15% year-to-date, trading at N20.75 per share ahead of the March 25, 2026 market open.
The latest results reinforce CWG’s position as a growing player in Nigeria’s IT services sector, supported by rising demand for digital infrastructure and enterprise solutions.