Initiates PlcNSENG: TIP

Quarter 1 - financial statement for 2025

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THE INITIATES PLC 1ST QUARTER UNAUDITED ACCOUNT FOR PERIOD ENDED 31ST MARCH. 2025


2025

TIP FINANCE DEPARTMENT

3/31/2025



DOCUMENT NO.: TIP-FIN-MNG -0026 REV NO.: 00

Unit/Dept: COMMERCIAL AND FINANCE Site/Location: TIP BASE

Completed By: TANEH ROSEMARY Position: CHIEF FINANCIAL OFFICER

TABLE OF CONTENT

TITLE PAGE 1

TABLE OF CONTENT 2

STATEMENT OF DIRECTOR'S RESPONSILITY 3

CERTIFICATION OF COMPLIANCE 4

SECURITY TRADING POLICY 5

FREE FLOAT STATUS 6

AUDIT COMMITTEE REPORT 7

EXECUTIVE SUMMARY 8-11

STATEMENT OF COMPREHENSIVE INCOME 12

STATEMENT OF FINANCIAL POSITION 13

CHANGE IN EQUITY 14

CASHFLOW STATEMENT 15

NOTE TO THE ACCOUNTS-- 16-29

STATEMENT OF VALUE ADDED 31

FIVE YEARS FINANCIAL SUMMARY 32



DOCUMENT NO.: TIP-FIN-MNG -0026

REV NO.: 00



THE INITIATES PLC

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors of The Initiates Plc are responsible for the preparation of the financial statements that give a true and fair view of the financial position of the Company and the results of its operations, cashflows and changes in equity for the period ended 31st March 2025, in compliance with International Financial Reporting Standards ("IFRS") and in the manner required by the Companies and Allied Matters Act of Nigeria, the Financial Reporting Council of Nigeria Act, 2011.

In preparing the financial statements, the Directors are responsible for:

  • properly selecting and applying accounting policies;

  • presenting information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

  • providing additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the Company's financial position and financial performance; and

  • making an assessment of the Company's ability to continue as a going concern.

    The Directors are responsible for:

  • designing, implementing and maintaining an effective and sound system of internal controls throughout the Company;

  • maintaining adequate accounting records that are sufficient to show and explain the Company's

    transactions and disclose with reasonable accuracy at any time the financial position of the Company, and which enable them to ensure that the financial statements of the Company comply with IFRS;

  • maintaining statutory accounting records in compliance with the legislation of Nigeria and IFRS;

  • taking such steps as are reasonably available to them to safeguard the assets of the Company; and

  • preventing and detecting fraud and other irregularities.

The financial statements of the Company for the period ended 31st March 2025 were approved by directors on 24th April, 2025.

SIGNED ON BEHALF OF THE BOARD OF DIRECTORS BY:

………………………………………… ………………………………………….. Mr. Joe Ogbonna Anosikeh Mr. Reuben Mustapha Ossai

Chairman Managing Director

FRC No:FRC/2014/NIS/00000008836 FRC No:FRC/2014/NIAECHI/00000009687



DOCUMENT NO.: TIP-FIN-MNG -0026 REV NO.: 00

CERTIFICATE OF COMPLIANCE OF THE INITIATES PLC PURSUANT TO

SECTION 60(2) OF THE INVESTMENT AND SECURITIES ACT, 2007 FOR THE FIRST QUARTER ENDED 31ST MARCH 2025

We hereby certify that:

  1. The signing officers have reviewed the financial report;

  2. Based on the knowledge of the officers, the Management account does not:

    1. Contain any untrue statement of a material fact;

    2. Omit to state a material fact which would make the statement misleading in the light of the circumstances under which the statement was made;

  3. The financial statement represents fairly the financial condition and result of the operations of the Company as of and for the period indicated;

  4. The signing officers:

    1. Are responsible for establishing and maintaining internal control.

    2. Have designed such internal control to ensure that material information relating to the Company is made known to such officers within the entity particularly during the period in which the periodic report was prepared.

    3. Have evaluated the effectiveness of the Company's internal control as of date within 30 days prior to the time of this account.

  1. The signing officers have disclosed to the Audit Committee of the Company.

  2. All significant deficiencies in the design or operations of the internal controls which would adversely affect the Company's ability to record, process, summarize and report financial data and was identified for any material weakness in internal controls;



Anosikeh, Joe Ogbonna Ossai, Reuben Mustapha Taneh Rosemary Chairman Chief Executive Officer Chief Financial Officer

FRC/2014/PRO/DIR/003/00000008836 FRC/2014/PRO/DIR/003/00000009687 FRC/2017/PRO/ICAN/001/00000016060



DOCUMENT NO.: TIP-FIN-MNG -0026 REV NO.: 00

SECURITIES TRADING POLICY

In compliance with Rule 17.15 Disclosure of Dealings in Issuers' Shares, Rulebook of the Exchange 2015 (Issuers Rule): The Initiates Plc maintains effective Security Trading Policy which guides Directors, Audit Committee members, employees and all individuals categorized as insiders as to their dealing in the Company's shares. The Policy is regularly reviewed and updated by the Board. The Company has made specific inquiries of all the directors and other insiders and is not aware of any infringement of the policy during the period.



Olaide Odejobi Company Secretary

FRC/2017/PRO/NBA/002/00000016739



DOCUMENT NO.: TIP-FIN-MNG -0026 REV NO.: 00

THE INITIATES PLC

SHAREHOLDING STRUCTURE AND FREE FLOAT STATUS AS AT THE PERIOD ENDED 31ST MARCH 2025

COMPANY NAME: THE INITIATES PLC.

BOARD LISTED: GROWTH BOARD

YEAR END: 31ST DECEMBER

REPORTING PERIOD 2025 FIRST QUATER (1ST JANUARY - 31ST MARCH 2025)

SHARE PRICE AS AT REPORTING DATE: N4.20 (2024: N2.27)

DESCRIPTION

2025

2024

UNITS

PERCENTAGE (IN RELATION TO ISSUED SHARE CAPITAL) %

UNITS

PERCENTAGE (IN RELATION TO ISSUED SHARE CAPITAL) %

Issued Share Capital @ 50 Kobo per share

889,981,552

100%

889,981,552

100%

Details of Substantial Shareholdings (5% and above)

DVCF OIL & GAS PLC

-

-

218,441,000

24.54

OSSAI REUBEN M

190,695,237

21.43

190,695,237

21.43

AFOLAYAN SAMUEL OLAJIDE

129,305,559

14.53

102,552,084

11.52

RICHGATE INVEST SEC LTD

105,000,000

11.80

-

-

OBOH-OZOHEREBE GORDON

58,568,412

6.58

58,568,412

6.58

Total Substantial Shareholdings

483,569,208

54.33

570,256,733

64.08

Details of Directors Shareholdings (direct and indirect), excluding directors' holding substantial interests

ANOSIKEH JOE OGBONNA

20,295,796

2.28

20,295,796

2.28

ALIKOR ACHI EDWARD

1,126,761

0.13

1,126,761

0.13

EBINUM JOESEPH ( INDIRECT - BELL IYKE LIMITED)

37,550,000

4.22

37,550,000

4.22

Total Directors' Shareholdings

58,972,557

6.63

58,972,557

6.63

Details of Other Influential shareholdings, if any (E.g. Government, Promoters)

EMPLOYEES

5,432,282

0.61

5,432,282

0.61

Total of Other Influential Shareholdings

5,432,282

0.61

5,432,282

0.61

Free Float in Unit and Percentage

342,007,505

38.43

255,319,980

28.69

Free Float in Value ₦ 1,436,431,521.00

₦ 293,617,977.00

  1. THE INITIATES Plc with a free float percentage of 38.43% as at 31st March 2025, is compliant with The Exchange's free float requirements for companies listed on the GROWTH Board.

  2. THE INITIATES Plc with a free float Value of N1,436,5221,890.13 as at 31st March 2025, is compliant with The Exchange's free float requirements for companies listed on the GROWTH Board.



DOCUMENT NO.: TIP-FIN-MNG -0026 REV NO.: 00

AUDIT COMMITTEE REPORT OF THE INITIATES PLC

In compliance with Section 359(6) of the Companies and Allied Matters Act CAP.C20, LFN 2004, and Section 60(2) of the Investment and Securities Act 2007, we have reviewed the Management account for the first quarter ended 31st March 2025; and hereby state as follows:

  1. We examined the accounting entries, policies and bases for preparation of the first quarter ended 31st March 2025; this was in our opinion adequate.

  2. We also reviewed the Internal Auditors report for the period as well as the Management's response thereon.

  3. We ascertained that the accounting and reporting policies of the Company for first quarter ended 31st March 2025; are in accordance with legal requirements and agreed ethical practices.

In our opinion, the accounting entries, policies and bases of this Management account for the first quarter ended 31st March 2025; was adequate and Management's response to Internal Auditors' findings thereon was satisfactory.

Dated 23rd April, 2025.



FRC/2017/PRO/ ICAN/002/00000016424

Members of the Committee:

Mr. Christian Ugochukwu Nwanma - Chairman/Shareholder Representative Prof. Edward Alikor - Non-Executive Director

Mr. Joseph Ebinum - Non-Executive Director

Mr. Adegbite Olushola Babawale Shareholder Representative



DOCUMENT NO.: TIP-FIN-MNG -0026 REV NO.: 00

EXECUTIVE SUMMARY:

1.1 FOURTH QUARTER (JAN - MARCH 2025)

TIP reported an outstanding revenue of N1.206B (2024: N314.6M) representing over 282.78% increase over same period in 2024. A gross Profit of N617.07 million naira representing 51% of the revenue (Q1 2024: 180.77M,) was reported for the quarter showing an impressive performance. An outstanding Net profit before tax of N466.87M (Q1 2024: 96.2M,) was reported for the first quarter.

2.1. BALANCE SHEET

TIP Balance Sheet value shows a total asset of over NGN5.913 billion as 31st March, 2025

  1. Trade Receivables: This stood at NGN3,349B as 31st March, 2025 with only NGN147.13M above 90 days.

  2. Trade Payable: NGN1.744B is the Account Payable balance as at the close of business (COB) on the 31st March, 2025.

  3. Measurement of Liquidity:

TIP liquidity including Cash & Cash Equivalent at the close of the 31st March 2025 shows NGN465.65M. There is a clear sign that TIP has improved liquidity notwithstanding the huge account receivable. The Company's gearing ratio is 0:17 resulting from the balance from the long loan as at 31st March, 2025.

The Management and Board are pleased that this continuous growth in overall performance will continue into the future with the diversification into other waste management streams.



DOCUMENT NO.: TIP-FIN-MNG -0026 REV NO.: 00

1. KEY PERFORMANCE INDICATORS

S/N

PARAMETER

2025 RESULT.

2024 RESULT

1

TURNOVER

1,204,257,802

314,610,107

2

NON - OIL & GAS REVENUE

900,000

6,065,041

3

NEW CLIENT

3.00

-

4

NEW PROJECT

5.00

1.00

5

OPERATIONAL NET PROFIT

375,237,073

281,733,427

6

EARNINGS PER SHARE

0.42

0.32

7

RETURN ON EQUITY

0.11

0.04

8

RETURN ON SALES

0.26

0.21

9

PRICE EARNINGS RATIO

1.43

6.80

10

INCREASE IN EQUITY

2.83

3.88

11

RETURN ON ASSET

0.20

0.12

12

WMS - KWALE REV.

459,929,314

-

13

WMS- KWALE OPREX

281,634,760

-

14

WMS - PHC REVENUE

302,192,644

261,998,088

15

WMS- PHC OPREX

188,557,799

118,887,606

16

ICS REVENUE

442,135,844

52,612,018

17

ICS OPREX

116,990,287

14,950,341

18

QHSE COST

6,838,584

6,303,028

19

FINANCE COST

18,468,747

21,023,371

20

ADMIN COST

101,820,993

41,170,487

21

SPS (GMTN) COST

513,646,243

94,773,562

22

BUSINESS DEV COST

-

50,000

The Management and Board are happy with this continuous performance increase and hope to continue with it.



DOCUMENT NO.: TIP-FIN-MNG -0026 REV NO.: 00

THE INITIATES PUBLIC LIMITED COMPANY

HIGHLIGHT OF ACCOUNT FOR THE FIRST QUARTER ENDED 31ST MARCH 2025

STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 31ST MARCH

ACTUAL

HISTROY

CHANGE

N'Mn

N'Mn

%

Revenue

1,204.26

314.61

282.78

Direct cost

587.18

133.84

338.73

Gross Profit

617.07

180.77

241.36

Total Indirect Cost

131.74

63.55

107.30

Financial Cost

18.47

21.02

(12.15)

Profit Before Tax

466.87

96.20

385.32

Provision of Income Tax Expense

155.26

30.78

404.35

Profit for the period

311.61

65.41

376.36

STATEMENT OF FINANCIAL POSITION

AS AT 31ST MARCH

ACTUAL

HISTROY

CHANGE

ASSETS

N'Mn

N'Mn

%

Non-Current Assets

Property, plant and Equipment

2,029.61

1,713.17

18.47

Other non - current asset

4.60

17.91

(74.33)

Total Non-Current Assets

2,034.20

1,731.08

17.51

Current Assets

Inventories

46.41

18.53

150.51

Trade receivables

3,349.67

605.78

452.95

Cash and cash equivalents

465.65

145.17

220.76

Current tax assets

-

81.14

(100.00)

Other current tax assets

17.07

38.16

(55.27)

Total current Asset

3,878.80

888.78

336.42

Total Assets

5,913.00

2,619.86

125.70

Non-Current Liabilities

Deferred tax

267.04

122.13

118.66

Long Term Borrowing

300.00

700.00

(57.14)

Total Non-Current Liability

567.04

822.13

(31.03)

Current Liabilities

Trade and Other payables

1,744.67

230.28

657.63

Current tax liabilities

155.26

47.47

227.04

Other current tax liabilities

405.98

137.75

194.72

Employees' benefits

7.87

5.35

47.10

Short term borrowings

182.95

116.92

56.47

Total current liabilities

2,496.73

537.77

364.27

Total Liabilities

3,063.77

1,359.90

125.29

Working Capital

1,382.07

351.01

293.74

Net Asset

2,849.23

1,259.96

126.14



DOCUMENT NO.: TIP-FIN-MNG -0026 REV NO.: 00

KEY RATIOS

THREE MONTHS ENDED 31ST MARCH

Q1 2025

Q1 2024

Earnings Per Share

0.35

0.07

Gross Profit Margin

51.24

57.46

Net Profit Margin

25.88

20.79

Net Asset Per Shares

3.20

1.64

Return on Capital Employed

9.12

3.14

Current Ratios

1.55

1.65

Net Working Capital:

1.15

1.12

Fixed Asset Turnover:

0.63

0.20

Receivables Turnover

0.72

1.04

Payables Turnover

(0.82)

(1.71)

Return On Equity

0.11

0.04

Return On Assets

0.20

0.12

Price Earning per Share

1.43

6.80

Gearing Ratio

0.17

0.42

Return on Sales

0.26

0.21

Annual Revenue Increase

2.83

3.88

Annual Net Profit Increase

3.76

1.00

Net Profit Per Staff

5,665,663.33

1,391,806.26

TIP Q1 2025

Graphical representation of TIP's FIRST QUARTER 2025 performance

ACTUAL N'Mn HISTORY N'Mn

6,000.00

5,000.00

4,000.00

3,000.00

2,000.00

1,000.00

-





DOCUMENT NO.: TIP-FIN-MNG -0026 REV NO.: 00

THE INITIATES PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31ST MARCH 2025

ACTUAL Q1 2025

REVENUE

HISTORY Q1 2024

CHANGE

2024

2023

Continuing Operations Note

N

%

N

%

N

N

Revenue from contracts with customers 6

1,204,257,802

100%

314,610,107

282.78

4,663,473,951

1,849,471,769

Cost of sales 7

587,182,846

49%

133,837,947

338.73

2,153,641,960

1,171,532,339

Gross profit

617,074,957

51%

180,772,159

241.36

2,509,831,991

677,939,430

Other income 6a

0%

-

-

-

-

Staff costs 8

24,316,511

2%

19,654,473

23.72

115,439,125

77,014,490

Depreciation and impairment loss 9

5,600,052

0%

2,725,455

105.47

10,872,692

9,098,316

Administrative expenses 10

101,820,993

8%

41,170,487

147.32

440,784,295

141,609,490

Total Indirect Cost

131,737,556

11%

63,550,415

107.30

567,096,112

227,722,296

Results from operating activities

485,337,400

40%

117,221,744

314.03

1,942,735,879

450,217,134

Finance cost 13

18,468,747

2%

21,023,371

13.83

80,205,167

78,298,206

Profit before tax

466,868,654

39%

96,198,374

385.32

1,862,530,713

371,918,928

Provision for Income tax expense 14.1

155,257,171

13%

30,783,480

404.35

(672,757,469)

(171,546,102)

Profit for the year

311,611,483

26%

65,414,894

376.36

1,189,773,244

200,372,826

Other Comprehensive income Investment Income received from TIU 6a

52,706,908

76,613,421

(31.20)

139,439,524

135,597,541

Foreign currency translation difference 6b

10,918,681

139,705,112

(92.18)

50,471,279

12,256,645

Revaluation surplus on property, plant an 23.3

-

-

-

-

-

Other comprehensive income for the year

63,625,590

216,318,533

(70.59)

189,910,803

147,854,186

Total comprehensive income for the year

375,237,073

281,733,427

33.19

1,379,684,047

348,227,012

Basic earnings per share (kobo) 35

0.35

0.07

376.36

1.34

0.23

The notes on pages 16 to 28 form part of these financial statements.



DOCUMENT NO.: TIP-FIN-MNG -0026 REV NO.: 00

THE INITIATES PLC

STATEMENT OF FINANCIAL POSITION

AS AT 31ST MARCH 2025

ACTUAL

HISTORICAL

CHANGE

2024

2023

Assets

Note

YTD 2025

YTD 2024

%

N

N

Non-current assets

Property, plant and equipment

15

1,923,988,161

1,607,550,971

19.68

1,930,266,501

1,531,133,502

Other non-current assets

17

4,596,867

17,907,467

(74.33)

4,596,867

17,907,467

Investment

20

105,619,312

105,619,312

-

105,619,312

105,259,214

2,034,204,340

1,731,077,750

17.51

2,040,482,680

1,654,300,183

Current assets

Inventories

18

46,408,424

18,525,777

150.51

29,152,525

13,576,920

Trade and other receivables

19

3,349,671,491

605,781,279

452.95

2,976,976,086

610,783,412

Cash and cash equivalents

21

465,646,487

145,171,864

220.76

47,580,386

199,663,455

Current tax assets

22

-

81,138,985

(100.00)

-

57,687,440

Other current assets

23

17,071,041

38,163,307

(55.27)

26,070,001

23,756,139

Total current assets

3,878,797,445

888,781,212

336.42

3,079,778,998

905,467,366

Total Assets

5,913,001,785

2,619,858,961

125.70

5,120,261,678

2,559,767,549

Equity and Liabilities

Equity

Share capital

24

444,990,776

444,990,776

-

444,990,776

444,990,776

Share premium

25

17,780,000

17,780,000

-

17,780,000

17,780,000

Revaluation reserve

26

303,473,535

303,473,535

-

303,473,535

303,473,535

Retained earnings

27

2,082,988,676

693,714,516

200.27

1,707,751,603

411,981,089

Total equity

2,849,232,987

1,459,958,827

95.16

2,473,995,914

1,178,225,400

Non-current liabilities

Deferred tax liabilities

14.4

267,041,580

122,126,879

(54.27)

267,041,580

122,126,879

Long Term Borrowing

31

300,000,000

500,000,000

(40.00)

350,000,000

550,000,000

Current liabilities

Trade and other payables

28

1,744,670,663

230,278,865

(86.80)

1,104,400,731

301,070,063

Current tax liabilities

14

155,257,171

47,473,635

(69.42)

386,375,722

16,685,346

Other current tax liabilities

29

405,982,048

137,751,990

(66.07)

353,915,595

118,846,934

Employees' benefits

30

7,866,517

5,347,615

(32.02)

5,726,408

2,995,027

Short term borrowing

31.2

182,950,820

116,921,150

(36.09)

178,805,728

269,817,900

Total current liabilities

2,496,727,218

537,773,255

(78.46)

2,029,224,184

709,415,270

Total liabilities

3,063,768,798

1,159,900,134

(62.14)

2,646,265,764

1,381,542,149

Total equity and liabilities

5,913,001,785

2,619,858,961

(55.69)

5,120,261,678

2,559,767,549

These financial statements were approved by the Board of Directors on 24TH APRIL 2025 and signed on its behalf by:



Mr. Joe Ogbonna Anosikeh

Chairman

Mr. Reuben Mustapha Ossai

Managing Director

Rosemary Taneh

Chief Finance Officer

FRC/2014/PRO/DIR/003/00000008836

FRC/2014/PRO/DIR/003/00000009687

FRC/2017/PRO/ICAN/001/00000016060

The notes on pages 16 to 28 form part of these financial statements.



DOCUMENT NO.: TIP-FIN-MNG -0026 REV NO.: 00

THE INITIATES PLC

STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 31ST MARCH 2025

Share

capital

Share

premium

Revaluation

reserve

Retained

earnings

Total

Equity

N

N

N

N

N

At 1 January

444,990,776

17,780,000

303,473,535

1,707,751,603

2,473,995,914

Profit for the year

-

-

-

375,237,073

375,237,073

444,990,776

17,780,000

303,473,535

2,082,988,676

2,849,232,987

At 31st March

444,990,776

17,780,000

303,473,535

2,082,988,676

2,849,232,987

FOR THE PERIOD ENDED 31ST MARCH 2024

Share

capital

Share

premium

Revaluation

reserve

Retained

earnings

Total

Equity

N

N

N

N

N

At 1 January

444,990,776

17,780,000

303,473,535

411,981,089

1,178,225,400

Profit for the year

-

-

-

281,733,427

281,733,427

444,990,776

17,780,000

303,473,535

693,714,516

1,459,958,827

At 31 March

444,990,776

17,780,000

303,473,535

693,714,516

1,459,958,827

YEAR ENDED 31 DECEMBER 2024

Share

capital

Share

premium

Revaluation

reserve

Retained

earnings

Total

Equity

At 1 January

N

444,990,776

N

17,780,000

N

303,473,535

N

411,981,089

N

1,178,225,400

Adjustments

-

-

-

(30,514,639)

(30,514,639)

Dividends

(53,398,893)

(53,398,893)

Profit for the year

-

-

-

1,379,684,046

1,379,684,046

At 31 December

444,990,776

17,780,000

303,473,535

1,707,751,603

2,473,995,914



DOCUMENT NO.: TIP-FIN-MNG -0026 REV NO.: 00

THE INITIATES PLC

STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 31ST MARCH 2025

ACTUAL Q1 2025

HISTORY Q1 2024

CHANGE

2024

2023

Note

N

N

%

N

N

Cashflow from Operating Activities

Cashflows from Operations

963,716,000

530,156,297

81.78

1,498,034,998

596,878,485

Cash Paid to Suppliers

(357,494,002)

(188,264,948)

(47.34)

(646,769,516)

(177,056,025)

Cash Paid to Employees

(24,316,511)

(19,654,473)

(19.17)

(186,605,862)

(115,384,096)

Paid to Government (taxes)

-

-

(17,890,570)

(11,998,243)

Total

581,905,486

322,236,875

80.58

646,769,050

292,440,121

Cashflow from Investment Activities

Acquisition of property, plant and equipment

-

(184,124,582)

(100.00)

(359,823,431)

(173,131,600)

Asset-in-transit

(19,271,818)

(95,297,185)

(79.78)

(150,050,804)

(120,589,302)

Investment Income Received from TIU

52,706,908

76,613,421

(31.20)

138,144,819

(118,967)

Total

33,435,090

(202,808,345)

(116.49)

(371,729,416)

(293,839,869)

Cashflow from Financing Activities

Borrowings

-

656,864,418

269,817,900

Repayment of borrowings

(178,805,728)

(152,896,750)

(14.49)

(947,876,590)

(150,000,000)

Dividends paid to Shareholders

-

-

(53,398,893)

514,782

Unclaimed dividends paid to Shareholders

(3,000,000)

Interest received

430

Interest on unclaimed dividends

-

-

493,099

Finance cost

(18,468,747)

(21,023,371)

13.83

(80,205,167)

(78,298,206)

Total

(197,274,475)

(173,920,121)

(11.84)

(427,122,703)

42,034,476

Net Cash Flow

418,066,101

(54,491,591)

(113.03)

(152,083,069)

40,634,728

Opening Balance

47,580,386

199,663,455

319.63

199,663,455

159,028,727

Closing Balance

21

465,646,487

145,171,864

(68.82)

47,580,386

199,663,455



DOCUMENT NO.: TIP-FIN-MNG -0026 REV NO.: 00

THE INITIATES PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31ST MARCH 2025

ACTUAL

HISTORY

Q1 2025

N

Q1 2024

N

CHANGE

%

2024

N

2023

N

6. Revenue from contracts with customers

Waste Management Service

762,121,959

261,998,088

190.89

3,640,790,096

1,033,555,438

Industrial Cleaning Service

442,135,844

52,612,018

740.37

1,022,683,856

815,916,330

1,204,257,802

314,610,107

282.78

4,663,473,951

1,849,471,769

The revenue from contracts with customers is made up of:

TDU KWALE

459,929,314

-

100.00

1,562,640,196

-

TDU PHC

100,520,790

232,490,136

(56.76)

1,852,317,198

784,852,115

Incineration

28,300,548

5,328,106

431.16

168,373,724

87,237,482

E- Waste

136,117,913

24,179,846

462.94

55,220,377

65,815,241

Asbestos

37,253,394

-

100.00

2,238,600

95,650,600

ICS Vessel

12,000,000

11,609,717

3.36

3,510,000

104,632,827

ICS FPSO

430,135,844

41,002,301

949.05

1,019,173,856

711,283,504

1,204,257,802

314,610,107

282.78

4,663,473,951

1,849,471,769

6a. Other income

Interest Received

-

-

-

430

-

Dividend Received

52,706,908

76,613,421

(31.20)

138,504,917

134,405,771

Debt recovery

-

-

-

-

-

Sundry income

-

-

-

934,177

1,191,770

52,706,908

76,613,421

(31.20)

139,439,524

135,597,541

Dividend received is TIP' s portion of the dividend declared by The Initiates Uganda from the profit of its 2024 accounting year ended 30th June 2024 amounting to $34,092 after deducting 15% withholding tax.

6b Foreign exchange gains

This represents exchange difference arising from translation of foreign currency transactions during the year under review.

Realized foreign exchange gains

-

Unrealized foreign exchange gains

10,918,681

139,705,112

(92.18)

50,471,279

12,256,645

Foreign exchange gains

10,918,681

139,705,112

(92.18)

50,471,279

12,256,645

7. Cost of sales

WASTE LOGISTICS

117,868,350

49,836,700

(57.72)

545,443,490

431,121,284

WASTE TREATMENT

15,476,470

176,300

(98.86)

171,066,208

80,125,390

RENTALS

125,605,961

22,603,428

(82.00)

448,815,393

269,290,907

DEISEL AND LUBRICANTS

11,500,575

5,100,000

(55.65)

48,665,364

35,454,841

EQUIPMENT MAINTENANCE

12,195,673

11,994,295

(1.65)

95,717,102

29,606,787

DIRECT EMPLOYEES

21,877,780

12,066,881

(44.84)

71,166,737

38,369,606

TRANSPORT AND TRAVELING

3,065,650

1,873,000

(38.90)

12,015,290

16,890,545

CONSUMABLES

242,499,789

10,162,839

(95.81)

619,180,869

178,235,788

DEPRECIATION

17,830,312

9,684,477

(45.69)

56,562,167

38,162,233

DIRECT WAGES

3,218,800

2,467,000

(23.36)

49,944,389

16,985,025

COMMUNITY RELATIONS & SECURITY

9,204,900

1,520,000

(83.49)

14,959,500

17,348,958

QHSE

6,838,584

6,303,028

(7.83)

18,664,451

17,689,375

PROMOTIONS/ADVERTS

-

-

-

-

-

BIZ DEV

-

50,000

100.00

1,441,000

2,251,600

587,182,846

133,837,947

(77.21)

2,153,641,960

1,171,532,339



DOCUMENT NO.: TIP-FIN-MNG -0026 REV NO.: 00

8.

Staff costs

Staff Salaries and Wages (Corporate)

17,972,826

12,851,743

(28.49)

135,043,970

93,830,258

Staff Pensions (Employer)

1,132,625

1,467,546

29.57

4,004,562

5,220,296

Staff Welfare

-

100,000

100.00

29,820,000

5,752,000

Leave Allowance

943,800

1,277,760

35.38

-

-

Terminal Benefit

463,813

1,427,793

207.84

4,722,135

1,226,078

Medical Expense

3,803,448

2,529,631

(33.49)

13,015,195

9,355,464

24,316,511

19,654,473

(19.17)

186,605,862

115,384,096

8b.

Total employee costs recognised in profit or loss

Cost of sales

21,877,780

12,066,881

(44.84)

71,166,737

38,369,606

Administrative expenses

24,316,511

19,654,473

(19.17)

186,605,862

115,384,096

46,194,292

31,721,354

(31.33)

257,772,599

153,753,702

9.

Depreciation and impairment loss

Depreciation

5,600,052

2,725,455

(51.33)

10,872,692

9,098,316

10.

Administrative expenses

Directors' emolument

12,432,800

6,510,000

(47.64)

27,360,000

27,360,000

Directors' allowances and expenses

2,685,000

1,500,000

(44.13)

12,141,931

6,475,386

Directors' fees

1,912,500

687,500

(64.05)

5,200,000

2,750,000

Transport and travelling expenses

3,733,900

1,165,282

(68.79)

12,269,975

3,752,030

Legal and professional fees

42,778,888

4,876,874

(88.60)

12,294,141

9,056,865

Electricity

1,702,426

431,922

(74.63)

2,806,693

5,439,980

Fuel and diesel

9,097,375

4,713,875

(48.18)

42,372,670

22,036,070

Licenses and levies

170,000

130,000

(23.53)

464,700

1,625,067

Donation & Gift

620,000

-

(100.00)

1,890,000

500,000

Repairs and maintenance

2,195,300

2,446,700

11.45

11,116,100

6,434,400

Printing and stationery

887,440

230,512

(74.03)

1,666,489

1,552,018

Insurance

2,380,578

3,291,828

38.28

10,505,604

4,922,072

Telephone and postage

181,377

189,664

4.57

1,575,095

1,136,145

Entertainment

680,800

45,500

(93.32)

471,300

663,665

Internet expenses

325,234

631,819

94.27

7,377,432

319,250

QHSE Compliance

2,954,317

-

(100.00)

7,102,112

-

Industrial Training Fund

-

2,263,903

100.00

4,225,460

1,689,814

Bank charges

1,234,177

300,000

(75.69)

9,558,429

5,859,951

Training expenses

-

3,951,205

100.00

984,373

1,115,500

Local content tax

6,218,617

2,870,965

(53.83)

20,199,227

14,755,069

Subscription

962,748

-

(100.00)

9,369,136

2,625,172

Meal expenses

3,330,100

2,164,200

(35.01)

9,409,700

5,310,820

Corporate social responsibility

-

-

-

-

1,178,000

Balances written off

-

875,000

100.00

1,562

8,000

Auditors' remuneration

1,500,000

924,213

(38.39)

4,000,000

3,500,000

Provision for doubtful debts

-

-

169,049,145

-

Security expenses

2,563,932

969,523

(62.19)

9,213,856

3,819,135

Unrealized foreign exchange losses (note 8.3)

-

-

-

39,492,374

-

Office and general expenses

1,273,485

-

(100.00)

8,666,791

7,725,081

101,820,993

41,170,487

(59.57)

440,784,295

141,609,490

-

12.

Results from operating activities is stated after taking into

Director's emolument:

- Fees

1,912,500

687,500

178.18

5,200,000

2,750,000

- Others

39,501,931

33,835,386

Depreciation and impairment loss

23,430,364

12,409,932

88.80

67,434,859

47,260,549

Auditors' remuneration

1,500,000

924,213

62.30

4,000,000

3,500,000



DOCUMENT NO.: TIP-FIN-MNG -0026 REV NO.: 00

THE INITIATES PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31ST MARCH 2025

13. Finance cost

This represents interests charged by BOI and Providus Bank Plc on loan and invoice discounting facilities obtained respectively by The Initiates Plc.

ACTUAL

HISTORY

Q1 2025

Q1 2024

CHANGE

2024

2023

N

N

N

N

Other financial charges

-

-

13,589,256

18,391,402

Interest on loans

18,468,747

21,023,371

13.83

66,615,911

59,906,804

18,468,747

21,023,371

13.83

80,205,167

78,298,206

14.

Taxation

14a

Income tax expense

Company income tax

140,060,596

28,859,512

(79.39)

459,654,297

90,673,352

Education tax

14,006,060

615,670

(95.60)

60,682,662

16,658,550

Police Trust Fund

23,343

4,810

(79.39)

102,622

25,989

NASENI

1,167,172

240,496

(79.39)

5,131,104

-

155,257,171

29,479,992

(81.01)

525,570,685

107,357,891

-

-

Prior year under-provision

-

-

2,272,083

24,580,523

Current tax expense

155,257,171

29,479,992

(81.01)

527,842,768

131,938,414

Deferred tax

-

-

144,914,701

39,607,688

Income tax expense as per profit or loss

155,257,171

29,479,992

(81.01)

672,757,469

171,546,102

14b

Current tax liabilities

Movement in Income tax liabilities

At 1 January

-

-

-

16,685,346

7,550,070

Adjustment

-

-

-

-

1,527,225

Prior year under-provision (note 13.1.1)

-

-

2,272,083

24,580,523

Payments during the year

-

-

-

(17,890,570)

(11,998,243)

Tax charge for the year

155,257,171

29,479,992

(81.01)

525,570,685

107,357,891

Withholding tax credit notes applied

-

(140,261,822)

(112,332,120)

At 31st March

155,257,171

29,479,992

(81.01)

386,375,722

16,685,346

14.3

Reconciliation of effective tax rate

Profit/(loss) for the year before tax

466,868,654

96,198,374

(79.39)

2,052,441,515

519,773,114

Unrealized exchange gains

(52,706,908)

(76,613,421)

45.36

(138,504,917)

(12,256,645)

414,161,745

19,584,953

(95.27)

1,913,936,598

507,516,469

Minimum tax

Income tax using the company's domestic tax rate of 30%

124,248,524

5,875,486

(95.27)

574,180,979

152,254,940

Education tax using tax rate of 3% (2022: 2.5%)

12,424,852

391,699

(96.85)

57,418,098

15,225,494

NASENI

1,035,404

48,962

(95.27)

5,131,104

-

Police Trust Fund

20,708

979

(95.27)

102,622

25,989

Tax effect on expenses not deductible for tax purposes

-

-

-

35,910,202

15,763,621

Tax effect on capital allowances

-

-

-

(147,172,320)

(75,912,153)

Tax effect on tax incentives

-

-

-

2,272,083

24,580,523

Under-provision in prior year

-

144,914,701

39,607,688

Tax charge in income statement (Income tax and Education tax)

137,729,488

6,317,126

(95.41)

672,757,469

171,546,102

Effective tax rate

30

7

(77.74)

35.15

33.00



DOCUMENT NO.: TIP-FIN-MNG -0026 REV NO.: 00

THE INITIATES PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31ST MARCH 2025

14.4

Deferred tax liabilities

ACTUAL

HISTORY Q1

Q1 2025

2024

CHANGE

Accelerated tax

Depreciation

At 1 January 2025

N

60,392,891

N

122,126,879

(50.55)

N

60,392,891

22,126,300

Movement in the year

39,607,688

-

-

39,607,688

-

At 31st March

100,000,579

122,126,879

(18.12)

100,000,579

22,126,300

Movement in the year

144,914,701

-

100.00

144,914,701

-

At 31st March

244,915,280

122,126,879

100.54

244,915,280

22,126,300

  1. Property, Plant and Equipment

    1. Summary

The carrying amount of property, plant and equipment is stated as follows;

ACTUAL

HISTORICAL

YTD 2025

YTD 2024

CHANGE

2024

2023

N

N

%

N

N

Land

71,733,787

71,166,593

0.80

71,733,787

71,166,592

Buildings

355,176,226

283,308,253

25.37

349,314,123

156,937,733

Capital Work-in-Progress

302,879,950

654,441,362

(53.72)

302,879,950

705,120,915

Motor Vehicle

8,279,448

12,811,573

(35.38)

1,184,245,252

581,490,071

Plant and Machinery

1,175,825,423

583,782,346

101.42

9,412,479

13,944,604

Furniture and Fittings

1,414,290

939

150,463.73

1,546,777

1,935

Office & HSE Equipment

8,679,037

2,039,905

325.46

11,134,133

2,471,652

1,923,988,161

1,607,550,971

19.68

1,930,266,501

1,531,133,502





DOCUMENT TITLE: 2024 FIRST QUARTER MANAGEMENT ACCOUNT

DOCUMENT NO.: TIP-FIN-MNG -0026

REV NO.: 00

THE INITIATES PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31ST MARCH 2025

Capital Work-

in-Progress

Plant and

Furniture and

Office & HSE

Land

Buildings

(note 15.4)

Machinery

Motor Vehicles

Fittings

Equipment

Total

N

N

N

N

N

N

N

Deemed Cost

71,733,787

379,887,370

302,879,950

1,426,425,046

18,128,500

7,390,299

25,776,070

2,232,221,022

At 1 January 2025

-

At 31 March 2025

71,733,787

379,887,370

302,879,950

1,426,425,046

18,128,500

7,390,299

25,776,070

2,232,221,022

Additions in the year

-

At 31 March 2025

71,733,787

379,887,370

302,879,950

1,426,425,046

18,128,500

7,390,299

25,776,070

2,232,221,022

Accumulated Depreciation and impairment los

-

At 1 January 2025

-

22,811,707

-

232,769,310

8,716,021

5,843,522

14,661,937

284,802,497

At 31 March 2025

-

22,811,707

-

232,769,310

8,716,021

5,843,522

14,661,937

284,802,497

Charge for the year

1,899,437

17,830,313

1,133,031

132,487

2,435,097

23,430,364

At 31 March 2025

-

24,711,144

-

250,599,623

9,849,052

5,976,009

17,097,034

308,232,861

Carrying amount

At 31 March 2025

71,733,787

355,176,226

302,879,950

1,175,825,423

8,279,448

1,414,290

8,679,037

1,923,988,161

At 31 March 2024

71,166,593

215,525,106

645,658,862

12,811,573

583,782,346

939

2,039,905

1,530,985,324

15.2A FOR THE PERIOD ENDED 31ST MARCH 2024

Capital Work-

Plant and

Furniture and

Office & HSE

Deemed Cost

Land

Buildings

in-Progress

Motor Vehicle

Machinery

Fittings

Equipment

Total

At 1 January 2024

N

N

N

N

N

N

N

N

Addition in the period

71,166,593

234,398,173

645,658,862

18,128,500

762,781,403

5,800,299

15,651,501

1,736,588,276

At 31st March

-

-

11,976,750

285,000

1,753,585,330

71,166,593

234,398,173

645,658,862

18,128,500

774,758,153

5,800,299

15,936,501

12,261,750

Accumulated Depreciation and impairment loss

At 1 January 2024

Charge for the year

-

(17,998,386)

-

(4,183,896)

(181,291,331)

(5,798,363)

(13,179,849)

-

At 31st March

-

(874,681)

(1,133,031)

(9,684,477)

(996)

(716,747)

(222,451,825)

-

(18,873,067)

-

(5,316,927)

(190,975,808)

(5,799,360)

(13,896,596)

(222,451,825)

Carrying amount

At 31st March 2024

71,166,593

215,525,106

645,658,862

12,811,573

583,782,346

939

2,039,905

1,530,985,324

At 31st December 2023

71,166,593

207,785,234

645,658,862

13,944,604

573,552,709

1,936

2,449,962

1,514,559,899

19 | P a g e

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