SCOA Nigeria Plc told a clear story in its 2025 results, as pressure met resilience.
First, the company placed debt at the centre of its strategy.
SCOA Nigeria Debt Takes Centre Stage
It raised borrowings to ₦12.017 billion from ₦5.58 billion in 2024.
It also concentrated on short-term debt, with over ₦11 billion due within a year.
Liabilities And Cash Pressure
Next, total liabilities climbed by 108.4% to ₦19.87 billion.
The company also pushed trade and other payables higher.
This shift shows its growing use of supplier credit.
Meanwhile, cash fell sharply by 74% to ₦1.05 billion.
As a result, the firm tied up more funds in receivables and inventory.
Revenue Drops, Profit Rises
In contrast, revenue dropped by 38.4% to ₦8.36 billion.
The company faced weaker demand across its core segments.
However, it tightened cost control across operations.
It cut cost of sales at a faster rate than revenue.
Consequently, gross profit rose to ₦1.30 billion.
In addition, administrative expenses declined to ₦1.34 billion.
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The company also recorded no finance costs in 2025.
This outcome strengthened earnings performance.
As a result, pre-tax profit surged by 114.8% to ₦804.70 million.
After that, post-tax profit increased by 142.5% to ₦553.75 million.
Earnings per share also climbed to 85 kobo.
At the same time, total assets grew by 91.1% to ₦22.99 billion.
However, liabilities grew faster than assets.
This trend increased leverage and financial risk.
Equity also rose by 51.9% to ₦1.73 billion.
Meanwhile, investors continued to show strong interest.
SCOA’s share price surged 219% year-to-date to ₦22.65.
The stock now ranks among the top performers on the NGX.
Despite this, the company has not paid dividends for about ten years.
Ultimately, the market rewarded growth, yet risks also increased.
Heavy borrowing and weaker cash flow now challenge the business.
Going forward, SCOA must improve liquidity and strengthen its financial balance.
