By Moses Nosike
FOR SWAP Technologies and Telecomms Plc, the difficult operating environment, may have had a negative effect on the company’s financial health in the year ended December 31, 2009.
This was the submissions of both the Board Chairman, Godwin Adopkaye and the company’s Managing Director/Chief Executive at the 2nd Annual General Meeting which held in Lagos recently. While addressing the company’s shareholders and board of directors, Adopkaye said: “The difficult operating environment led to a 61% drop in turnover from N5.25billion in 2008 to N2.04billion in 2009.”
He said that the significant drop was attributable to a huge decrease in company’s sales by “80% from N3.7billion in 2008 to N731million in 2009.” The company, he further observed, incurred a loss of N333million, a development, he said, made it impossible to pay dividend to shareholders in the period under review.
Perhaps, as a measure of board’s proactiveness, Adopkaye said, it elected to reposition the company for long term sustainability by reinventing the business to take advantage of opportunities in the sector by venturing into infrastructure sharing for network operators.
Adopkaye said, the company’s new line of business, co-location and infrastructure sharing, which commenced in the last quarter of 2009, contributed N234million (11%) to turnover.
“Investing in the new line of business had meant massive investment in income generating fixed assets”, he said, adding that in the year under review, fixed assets grew by 598% from N265million in 2008 to N1.85 billion in 2009.
Corroborating the board chairman, Titilayo said the company’s new line of business was capable of ensuring a sustainable cash flow in the coming years.
The SWAP boss, who recalled that the company recorded further milestones in the year under review, such as setting up shop in Ghana and Cote D’Ivoire and winning laurels in recognition of its leadership role in the sector, also assured the shareholders of the future growth of the company, in terms of expansion and high turnover profits.