CWG Plc, a leading West African systems integrator and IT services provider, reported an 84% jump in full-year profit for 2025, fueled by a massive acceleration in its infrastructure and software businesses.
The firm’s net income rose to ₦5.6 billion, up from ₦3.04 billion in 2024, as corporate Nigeria’s race to digitize sparked an 88% surge in demand for the company’s core IT infrastructure services.
However, the rapid growth has strained the company’s working capital. A significant spike in trade payables and a sharp rise in short-term borrowing suggest that CWG is leaning heavily on creditors and bank debt to fund its expanding operations.
Revenue Mix: Infrastructure Leads the Charge
The group’s top-line revenue grew 41.6% to ₦65.65 billion, driven by a robust performance across its service-heavy segments:
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Infrastructure Surge: IT Infrastructure services nearly doubled, jumping 88.4% to ₦24 billion, as banks and telcos ramped up data center and hardware maintenance.
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Software & Managed Services: Software revenue climbed 27.3% to ₦20.91 billion, while Managed and Support services rose 23.9% to ₦18.82 billion.
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Platform Drag: The only laggard was the Platform business, which saw revenue dip 13.5% to ₦1.88 billion, reflecting a shift in the group’s digital product mix.
The Working Capital Crunch: Payables and Debt Spike
Behind the glowing profit numbers, CWG’s balance sheet reveals emerging liquidity pressures:
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Creditor Pile-up: Trade and other payables jumped 39% to ₦21.27 billion, with trade creditors accounting for ₦9.89 billion. This suggests the company is extending its payment cycles to Original Equipment Manufacturers (OEMs) and suppliers.
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Borrowing Surge: Short-term loans and borrowings skyrocketed 127% to ₦4.57 billion, likely used to bridge the gap between service delivery and cash collection.
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Cash Position: Cash and cash equivalents fell 10.95% to ₦5.2 billion, leaving the group with a narrowing liquidity buffer as it services its debt.
Receivables Risk: Accrued Income Hits ₦10bn
As revenue expanded, so did the group’s “IOUs” from clients:
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Trade Receivables: Total receivables rose 42.5% to ₦23.93 billion.
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The “Accrued” Worry: Notably, ₦10.58 billion of this is classified as “accrued income”—revenue recognized for work done but not yet formally invoiced. While this indicates a strong pipeline, the eventual cash conversion and potential impairment risk remain key metrics for investors to watch in 2026.
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