Caverton Offshore Support Group Plc reported a 9.4% revenue increase to ₦31.99 billion for the year ending December 31, 2023, despite a ₦12.75 billion loss after tax.
Shareholders expressed concerns about rising costs and dividends, but leadership remains confident in future growth strategies, including electric boat partnerships.
Caverton Offshore Support Group Plc faced significant challenges in the financial year ending 31 December 2023, impacted by fluctuating exchange rates and rising business costs in Nigeria.
Despite these obstacles, the company reported a revenue of ₦31.99 billion, marking a 9.4 per cent increase from ₦29.23 billion in the previous year.
Moreover, gross profit rose to ₦7.2 billion, a remarkable 95 per cent increase from ₦3.69 billion in 2022.
However, the group recorded a substantial loss after tax of ₦12.75 billion, a 147 per cent rise from the ₦5.16 billion loss reported the previous year.
During a virtual Annual General Meeting, CEO Olabode Makanjuola highlighted the tough operating environment, citing high inflation, a significant devaluation of the Naira, and rising energy costs.
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He further reassured shareholders that the company is actively taking proactive steps to mitigate these challenges.
His words: “We are committed to capitalising on abundant opportunities in global and African markets.”
Chairman Aderemi Makanjuola stressed the importance of operational efficiency and cost management.
Additionally, he noted diversification efforts, including partnerships to enhance boat construction profitability.
Nevertheless, shareholders expressed concerns over rising operational costs and the lack of dividends due to losses.
Consequently, some urged management to explore alternative funding sources, particularly cheaper options through the capital market, as the company seeks to navigate the complexities of its operating environment while focusing on future growth.