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Global Accelerex Limited a Point of Sales (PoS) provider has reported weak earnings due to slow revenue growth, high operating expenses as well as the impact of naira devaluation.
As of 31 October 2024, the company registered a loss of N351.8 million and a low EBITDA margin of 3.2% (December 2023: 21.1%). in its financials for the period seen by MoneyCentral.
Global Accelerex’s competitive position is considered modest as the company remains a niche player within the broader Nigerian financial services industry.
The company has over the years expanded its operations by partnering with banks within Nigeria, and recently expanded to East Africa to drive growth and business diversification.
In about a decade of existence, the company has deployed about 160,000 POS terminals and has a network of 20,000 agents spread across Nigeria.
Global Accelerex’s expansion to East Africa and other African countries as well as its strategic partnership with top banks in Nigeria is expected to support growth going forward.
However, Global Accelerex’s operations remain susceptible to the weak operating environment in Nigeria.
However, going into financial year 2025, Global Accelerex plans to significantly scale its business in East and Central Africa with deals expected in Tanzania and Democratic Republic of Congo while also enhancing partnership with Nigerian bank to further drive growth, according to management.
The company has also established clear strategies to double its transaction income and grow fees and commission to support earnings stability.
Cashflow and leverage assessment was impacted by low earnings despite the moderation in debt level. Net debt to EBITDA registered at 6.0x, funds from operations to debt was 28.2%, while EBITDA coverage of interest expenses registered at a low level at 1.1x as of 31 October 2024.
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