Chams Plc, listed on the Information and Communications Technology sector of the Nigerian Stock Exchange, NSE, has said that its financial performance for the year ended 31stDecember, 2011, was negatively impacted by unstable government policies and other macro-economic challenges among others.
The company's profit after tax had during the year slumped by 1,236 percent, thereby making it one of the top negative profit earners among quoted companies in stock market.
Addressing shareholders at the company's annual general meeting in Abuja, chairman, Chams Plc, Professor Adebayo Akinde said the numerous negatives in the country vitiated its roll-out and project timelines, which frustrated its corporate expectations of returns.
Akinde, however, assured that the board has initiated a new intensive five-year strategic business plan aimed at strengthening the core competitive advantages of the company, as well as enhance its ability to operate profitability within the changing macroeconomic dynamics.
The five-year business plan, which included a two-year corporate plan that allows the company to intermittently observe its corporate progress, was sequel to extensive internal and external business reviews and was a major kernel of efforts by the board and management to put the company on the path of stable profitability, he further assured.
He noted that the board has engaged reputable consultants with expertise and vast experience in business turnaround to help it in the reinvention and repositioning of the company for excellent performance in addition to internal business review and restructuring by the management of the company.
He expressed optimism that the new business plan would open up new opportunities for the company in the private sector, which would mitigate the company's dependence on unstable public sector's projects.
According to him, while several long-awaited public sector projects have either been awarded or are in execution stage, the new strategic direction that focuses also on opportunities in the private sector would complement the strategic advantages of the company as the company-of-choice in information and communication technology (ICT) in Nigeria.
In his review, Managing Director, Chams Plc, Sir Demola Aladekomo, said the company was poised to leverage on its cutting-edge and innovative technologies to take full advantage of the Central Bank of Nigeria (CBN)'s cashless policy, otherwise known as 'cashlite' project.
He pointed out that Chams has already started rolling out its mobile payment solution with remarkable success while it has secured further milestones as a major stakeholder in the electronic and transactional payment industry. It should be recalled that the CBN had granted approval-in-principle for mobile payment license in 2010.
"The mobile payment solution characterized by our usual innovativeness, ease of use and cutting edge technology promises to change the face of payment in Nigeria. It must be mentioned that this singular solution is the future of transactional and payment processes with its huge propensity to dramatically yield untold value for our esteemed stakeholders. We are primed to roll out in full force with a view to capturing a substantial size of the market," Aladekomo said.