An overview of the Nigerian economy in 2023

In Nigeria, where we have a significant market presence, the economy is being diversified and forecasted to grow at a rate of 3.3%, driven by the non-oil sector, according to the Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS). While real GDP growth in Nigeria reached 2.74%, this remained fragile. Moreover, inflation rates have skyrocketed to 28.9% as of December, mainly due to the removal of subsidies on petrol and exchange rate unification, which are all alien to Nigerian society, causing profound uncertainties that have continued to ravage the economy even as of today.

Our 2023 achievements

Looking back on 2023, Chams Group can say that despite the challenging economic climate and obstacles encountered at every turn, it persevered and introduced several cutting-edge digital solutions. Our share prices achieved its highest growth to N2.44. NGX recognized our shares as the second-best-performing stock on NGX due to their stellar performance as frontline financial technology. We are still dedicated to achieving our goal of creating and delivering the most value possible for our shareholders while solidifying our position as Nigeria's and Africa's top supplier of digital and financial services.

Our culture of excellence is linked to the substantial growth of our fintech payment operations and business assets. We have put great effort into setting up the business to maximize value for our investors. ChamsSwitch partnered with one of the world’s largest card schemes, the Union Pay card, to birth the solution of a seamless and cost-effective cross-border trade in Nigeria. ChamsMobile solution Kegow continues to thrive in the market with its user-friendly feature, which preserves its existing customers and continues to attract new ones. Similarly, ChamsAccess launched a unique solution, SecureKid, amongst her other solutions like Pension Central, which add value progressively. CardCentre is equally performing well with the SIM and payment Card businesses while maintaining a healthy relationship with our international partners. We are thrilled to have invested in the respective digital solutions.

I have faith in our ability to keep expanding and changing as a company, enabling us to become industry leaders in the sectors we have selected while continually providing the returns our shareholders are entitled to based on our performance from the previous year.

Overview of our financial performance

In the financial year ended December 2023, the Group delivered an improved performance as we recorded tremendous growth along significant metrics.

Revenue increased by 90% to N9.6 billion from N5 billion in 2022. Total equity grew by 2% to N9.7 billion, while total assets grew by 16% to N19 billion. Gross profit grew exponentially by 85%. This resulted from our investments in new value payment businesses and incubating solutions, which were required to build critical mass and achieve market penetration at lower margins. The Group reported a profit-after-tax of N20 million, a 185% improvement over the loss reported in 2022.

Dividend payment

The company has not declared a dividend for the 2023 financial year since there were no distributable profits. However, we are determined to continue our journey in pursuit of sustainable revenue-yielding opportunities to help build the desired value for our shareholders in the short to medium term.

Board appointments

In 2023, Mr. Dumebi Obodo was appointed as a Non-Executive Director at the Board of Directors meeting held on the 29th of March, 2023.

Future outlook

One of our major plans for 2024 is the Fundraising. The funds generated will be rightly invested in the company to generate profit for the Group, so our shareholders can start receiving dividends for their investments soon. We aim to increase the production capacity of CardCentre, which will lead to more profit for the Group. ChamsSwitch also projects a partnership with a financial institution to execute her partnership with UnionPay. Our subsidiaries have also laid down various plans for the growth and progress of the Group. It is sufficient to say that 2024 will be an outstanding year for the Chams Group.

The organization has taken significant steps to ensure that we continue to grow and create cutting-edge digital solutions and services that will be relevant today and in the future. We will continue offering various solutions across various sectors in the country and the world, broadening our consumer range and making us key global players in the digital and mobile payments industry. We will continue to deliver cost-effective, secure, and innovative digital payment services. We will also continue to provide global standard innovative Fintech payment solutions. This will birth various income streams, leading us to sustained revenue and increased margins in the future.

Our steadfast commitment to success has carried us through the last thirty-nine years, building a strong team and a solid base for expansion. We are reimagining and repositioning our company through digital prosperity by utilizing these solid foundations.

Once again, my sincere appreciation goes to our shareholders, regulatory authorities, esteemed customers, partners, suppliers, vendors, investors, and bankers for their unwavering support and trust over the years. We anticipate our collaboration growing even further in 2024.

Conclusion

I express my sincere appreciation to the members of the Board for their substantial contributions, as well as our hardworking management team and staff for their commitment and resilience.

I am confident that implementing our vision, mainly investing in and growing our consumer digital businesses across the Group, will deliver exceptional value for all our stakeholders in the year ahead.

Thank you,
God bless all our shareholders, Board of directors, and Management,
God bless Chams Holding Company Plc,
God bless Nigeria.