Computer Warehouse Group (CWG) Plc. has released earnings warning that it suffered a decline in performance in the financial year ended December 31, 2017, and that its earnings may significantly drop than the previous years.
The board of directors dropped the is hint in a notification to the Nigerian Stock Exchange (NSE) Tuesday, noting that preliminary review of the annual report and accounts for the year ended December 31, 2017, revealed that estimated earnings and year-end financial targets “will be materially lower in comparison to prior year financials”.
The board noted that the reduction in earnings is as a result of losses incurred due to the financial cost implications of non-actualised projects, which have adversely affected the company’s estimated earnings and year-end projections.
It, however, allayed fears by investors and assured that its profit margin has continued to remain stable, despite the decline in earnings.
The company commenced operations in Nigeria, on September 26th, 1992 as Computer Warehouse Limited principally to cater for the hardware projects.
In February 2013, CWG ceased to be a private limited company and became a public company as CWG Plc.
Specifically on the 15th of November 2013, CWG Plc. listed its shares on the Nigerian Stock Exchange. The listing boosted the market capitalization of the NSE by about ₦14 billion making CWG PLC the highest capitalized security in the ICT sector.
The stock price has been flat for a month and currently trades at ₦2.54 on the floor of the exchange.