Nigeria: Chams attributes positive performance to backward integration

Chams Holdco Plc has attributed its impressive financial performance to the undertaken backward integration exercise.

Chams Holding Company Plc (Chams HoldCo) maintains its brand positioning and sustains excellent performance despite challenges in the operating environment.

The company recently achieved over 600 percent capital gain on NGX, securing the top position among quoted companies. In September, the Group Managing Director, Mayowa Olaniyan, presented the Facts Behind its Figures to NGX Management and Stockbrokers, assuring the investing public of Chams HoldCo’s promising future.

Olaniyan said: “Chams Holdco’s impressive financial performance is a result of meticulous backward integration efforts. Collaborating with strategic partners, CCNL is set to introduce new production lines for SIM cards and is looking to become a net exporter of its products to other African countries.

“The company’s strategic moves, including the expansion of its card production capabilities, the successful onboarding of major players, and the groundbreaking venture into local SIM card production, stand out as key contributors to its financial surge. Chams Holdco’s ability to adapt to market dynamics and pioneer innovative solutions is undoubtedly shaping its trajectory as a frontrunner in Nigeria’s rapidly evolving tech landscape.

“Card Center Nigeria Limited (CCNL) has been a key player in this success story. Widely recognised for its production of financial cards, CCNL has strategically diversified into the local production of SIM cards for Telecoms and Internet Service Providers (ISPs) operating in Nigeria,” she said.

Despite recent short-term volatility, the company has undergone a substantial rally in its share price this year. Beginning the year at N0.22, it has surged by 481.82% to N1.28, securing the 4th position on the NGX.

Chams’ share price rally appears to be driven by the dramatic change in its earnings trajectory.

The company’s H1 2023 financial results, which revealed a staggering profit after-tax growth of 1,426 per cent, marked a significant turning point, from the three consecutive years of reporting losses after tax before the 2023 financial year.

Chams started the year with a modest share price of N0.22. When a stock initiates from a low starting point, even a slight increase in its value can result in a significant percentage gain, rendering it an attractive choice for investors.

source: guardian.ng