Initiates PlcNSENG: TIP

Quarter 2 - financial statement for 2025

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THE INITIATES PLC 2ND QUARTER UNAUDITED ACCOUNT FOR PERIOD ENDED 30TH JUNE 2025


2025

TIP FINANCE DEPARTMENT

6/30/2025



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-- 16-22

STATEMENT OF VALUE ADDED 33

FIVE YEARS FINANCIAL SUMMARY 34



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

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, cash flows and changes in equity for the second quarter ended 30thJune 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 30thJune 2025 were approved by directors on 24thof July 2025.

SIGNED ON BEHALF OF THE BOARD OF DIRECTORS BY:



Mr. Joe Ogbonna Anosikeh Mr. Reuben Mustapha Ossai

Chairman Managing Director

FRC/2014/PRO/DIR/003/00000008836 FRC/2014/PRO/DIR/003/00000009687



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

SECOND QUARTER ENDED 30THJUNE 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 30TH JUNE 2025

COMPANY NAME: THE INITIATES PLC.

BOARD LISTED: GROWTH BOARD

YEAR END: 31ST DECEMBER

REPORTING PERIOD 2025 SECOND QUARTER /HALF YEAR (1ST APRIL - 30TH JUNE 2025)

SHARE PRICE AS AT REPORTING DATE: N8.25 (2024: N1.82)

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)

OSSAI REUBEN M

186,605,491

20.97

190,695,237

21.43

AFOLAYAN SAMUEL OLAJIDE

118,186,834

13.28

124,708,366

14.01

RICHGATE INVEST SEC LTD

78,912,968

8.87

121,757,898

13.68

OBOH-OZOHEREBE GORDON

58,568,412

6.58

58,568,412

6.58

Total Substantial Shareholdings

442,273,705

49.69

495,729,913

55.70

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

383,303,008

43.07

329,846,800

37.06

Free Float in Value ₦ 3,162,249,816.00

₦ 600,321,176.00

  1. THE INITIATES Plc with a free float percentage of 41.54% as at 30th June 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 N3,162,249,816.00 as at 30th June 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 second quarter ended 30th June 2025; and hereby state as follows:

  1. We examined the accounting entries, policies and bases for preparation of the second quarter ended 30th June 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 second quarter ended 30th June 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 second quarter ended 30th June 2025; was adequate and Management's response to Internal Auditors' findings thereon was satisfactory.

Dated 23rd July, 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 SECOND QUARTER (APRIL - JUNE)

TIP reported a total revenue of NGN 2.235B (2024 Q2: NGN 703.67) which represent 217% growth over same period in 2024. A Gross Profit of N937.9 million naira was reported for the quarter as against N 168.2 million reported in Q2 2024 showing a substantial performance with a Net Profit before tax of N 744.86 million naira as against the Profit of N89.388 million reported in Q2 2024.

HALF YEAR 2024 REPORT (JAN - JUNE 2025)

TIP posted a total revenue of NGN3,388 billion (2024: NGN1,015B) which represent over 233.86% growth over half year 2024 report. A gross Profit of N1,619B (2024:355.15) was reported for the period showing an amazing performance. A Net Profit before tax of N1,362B is also an improvement of the profit of N182.27M reported at June 30th 2024 by 647.29 %.

Notwithstanding the high inflation, volatile economy, and exchange rate, the Management of TIP is pleased with this performance.



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

BALANCE SHEET

TIP Balance Sheet value shows a Total Asset of over NGN 6,214 B as at 30th June, 2025

  1. Trade Receivables value shows NGN3.858B as 30 June, 2025 and NGN 907B receivable is above 90 days although recovery effort for all very high.

  2. Trade Payable reports NGN1,550b as the balance as at the close of business (COB) on the 30 June, 2025

  3. Measurement of Liquidity:

TIP liquidity indicated by its Cash & Cash Equivalent at the close of the June 30th 2025 shows NGN43.2M and total borrowings reduced to NGN200M.

The Management and Board are happy that this continuous increase in turnover will go a long way to remedy all current challenges with the assurance to all stakeholders and prospective investors that there is good reason to believe in the future of this budding company.



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

1. KEY PERFORMANCE INDICATORS

S/N

BUDGET PARAMETER

QTLY RESULT

HALF YEAR RESULT.

1

Turnover

2,234,701,005

3,388,303,309

2

Non-Oil & Gas Revenue

14,566,568

15,466,568

3

New Client

NIL

2

4

New Project

2

2

5

Operational Net Profit

744,858,579

1,362,089,921

6

Earnings Per Share

0.57

1.04

7

Gross Profit Margin

41.97

47.79

8

Net Profit Margin

22.67

27.34

9

Net Asset Per Shares

3.72

3.72

10

Return on Capital Employed

13.50

24.68

11

Current Ratios

1.68

1.68

12

Net Working Capital:

0.75

0.50

13

Fixed Asset Turnover:

1.14

1.73

14

Receivables Turnover

1.16

1.76

15

Payables Turnover

(1.91)

(2.69)

16

Return On Equity

0.36

0.28

17

Return On Assets

0.36

0.55

18

Price Earning per Share

0.88

0.48

19

Gearing Ratio

0.06

0.06

20

Return on Sales

0.33

0.40

21

Annual Revenue Increase

2.18

2.34

22

Annual Net Profit Increase

7.33

6.47

23

Net Profit Per Staff

8,441,731

15,437,019

24

WMS REVENUE

1,801,635,160.91

2,513,188,120

25

WMS OPREX

1,112,239,778.27

1,518,900,653.98

26

ICS REVENUE

433,065,843.63

875,201,687.26

27

ICS OPREX

183,418,696.16

247,103,477.65

28

QHSE COST

4,535,569

11,891,042

29

FINANCE COST

17,293,565

23,731,006

30

ADMIN COST

145,461,234

253,066,322

31

SPS (GMTN) COST

37,159,080

48,223,713

32

BUSINESS DEV COST

NIL

NIL

The Management and Board are happy with this continuous increase in revenue and hope to sustained it.



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

THE INITIATES PUBLIC LIMITED COMPANY

HIGHLIGHT OF ACCOUNT FOR THE PERIOD HALF YEAR ENDED 30TH JUNE 2025

STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30TH JUNE

THREE M ONTHS ENDED 30TH JUNE

HALF YEAR ENDED 30TH JUNE

ACTUAL

HISTROY

CHANGE

ACTUAL

HISTROY

CHANGE

N'Mn

N'Mn

%

N'Mn

N'Mn

%

Revenue

2,234.70

703.67

217.58

3,388.39

1,014.92

233.86

Direct cost

1,296.83

525.52

146.77

1,768.92

659.76

168.11

Gross Profit

937.87

178.15

426.44

1,619.47

355.15

355.99

Other Income

4.65

-

100.00

82.15

-

100.00

Total Indirect Cost

180.37

66.83

169.88

315.80

129.93

143.06

Financial Cost

17.29

21.93

(21.15)

23.73

42.96

(44.75)

Profit Before Tax

744.86

89.39

733.28

1,362.09

182.27

647.29

Provision of Income Tax Expense

238.35

28.60

733.28

435.87

58.33

647.29

Profit for the period

506.50

60.78

733.28

926.22

123.94

647.29

STATEMENT OF FINANCIAL POSITION

AS AT 30TH JUNE

ACTUAL

HISTROY

CHANGE

ASSETS

N'Mn

N'Mn

%

Non-Current Assets

Property, plant and Equipment

1,963.82

1,884.64

4.20

Other non - current asset

4.60

9.92

(53.65)

Investment

105.62

105.62

-

Total Non-Current Assets

2,074.04

1,894.56

9.47

Current Assets

Inventories

59.72

26.37

126.51

Trade receivables

3,858.02

881.09

337.87

Cash and cash equivalents

43.21

31.25

38.25

Current tax assets

140.67

72.54

93.92

Other current tax assets

38.54

44.99

(14.33)

Total current Asset

4,140.16

1,056.23

291.97

Total Assets

6,214.20

2,950.79

110.59

Non-Current Liabilities

Deferred tax

244.92

122.13

100.54

Long Term Borrowing

200.00

500.00

(60.00)

Total Non-Current Liability

444.92

622.13

(28.48)

Current Liabilities

Trade and Other payables

1,550.50

652.68

137.56

Other current tax liabilities

439.34

76.28

475.96

Other current tax liabilities

463.25

155.99

196.97

Employees' benefits

7.88

7.93

(0.64)

Short term borrowings

(0.00)

62.06

100.00

Total current liabilities

2,460.96

954.95

157.71

Total Liabilities

2,905.88

1,577.07

84.26

Working Capital

1,679.19

101.29

1,557.87

Net Asset

3,308.32

1,373.72

140.83



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

KEY RATIOS

THREE MONTHS ENDED 30TH JUNE

HALF YEAR ENDED 30TH JUNE

Q2 2025

Q2 2024

YTD 2025

YTD 2024

Earnings Per Share

0.57

0.07

1.04

0.14

Gross Profit Margin

41.97

25.32

47.79

34.99

Net Profit Margin

22.67

8.64

27.34

12.21

Net Asset Per Shares

3.72

1.66

3.72

1.66

Return on Capital Employed

13.50

2.89

24.68

5.90

Current Ratios

1.68

1.11

1.68

1.11

Net Working Capital:

0.75

0.14

0.50

0.10

Fixed Asset Turnover:

1.14

0.37

1.73

0.54

Receivables Turnover

1.16

1.60

1.76

7.69

Payables Turnover

(1.91)

(1.82)

(2.69)

(2.42)

Return On Equity

0.36

0.23

0.28

0.08

Return On Assets

0.36

0.23

0.55

0.33

Price Earning per Share

0.88

7.32

0.48

3.59

Gearing Ratio

0.06

0.34

0.06

0.34

Return on Sales

0.33

0.33

0.40

0.18

Annual Revenue Increase

2.18

0.89

2.34

(1.00)

Annual Net Profit Increase

7.33

0.10

6.47

13.57

Net Profit Per Staff

8,441,731

1,240,491

15,437,019

2,529,454

kobo

%

%

kobo

%

x x x x x

%

%

kobo

%

HALF YEAR

7,000.00

6,000.00

5,000.00

4,000.00

3,000.00

2,000.00

1,000.00

-

YTD 2025 ACTUAL N'Mn

YTD 2025 HISTORY N'Mn

Graphical representation of TIP'S 2025 HALF YEAR performance

Graphical representation of TIP'S SECOND QUARTER 2025 performance

TIP Q2

7,000.00

6,000.00

5,000.00

4,000.00

3,000.00

2,000.00

1,000.00

-

Q2 2025 ACTUAL N'Mn Q2 2025 HISTORY N'Mn



x x x x





DOCUMENT TITLE: 2025 SECOND QUARTER MANAGEMENT ACCOUNT

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 30TH JUNE 2025

ACTUAL Q2 2025

REVENUE

HISTORY Q2 2024

CHANGE

ACTUAL YTD 2025

REVENUE

HISTORY YTD 2024

CHANGE

2024

2023

Continuing Operations Note

N

%

N

%

N

%

N

%

N

N

Revenue from contracts with customers 6

2,234,701,005

100%

703,673,105

217.58

3,388,389,807

100%

1,014,918,073

233.86

4,663,473,951

1,849,471,769

Cost of sales 7

1,296,831,049

58%

525,520,254

146.77

1,768,916,707

52%

659,764,666

168.11

2,153,641,960

1,171,532,339

Gross profit

937,869,955

42%

178,152,851

426.44

1,619,473,100

48%

355,153,407

355.99

2,509,831,991.2300

677,939,429.64

Other income 6a

4,649,108

0%

-

-

82,152,628

2%

-

-

Staff costs 8

29,852,455

1%

19,356,423

54.23

53,843,491

2%

38,556,458

39.65

115,439,125

77,014,490

Depreciation and impairment loss 9

5,053,231

0%

2,733,959

84.83

8,894,988

0%

5,459,414

62.93

10,872,692

9,098,316

Administrative expenses 10

145,461,234

7%

44,742,189

225.11

253,066,322

7%

85,912,676

194.56

440,784,295

141,609,490

Total Indirect Cost

180,366,920

8%

66,832,571

169.88

315,804,801

9%

129,928,548

143.06

567,096,112

227,722,296

Results from operating activities

762,152,144

34%

111,320,280

584.65

1,385,820,927

41%

225,224,859

515.31

1,942,735,879.44

450,217,134

Finance cost 13

17,293,565

1%

21,931,974

(21.15)

23,731,006

1%

42,955,345

(44.75)

80,205,166.90

78,298,206

Profit before tax

744,858,579

33%

89,388,306

733.28

1,362,089,921

40%

182,269,514

647.29

1,862,530,713

371,918,928

Provision for Income tax expense 14.1

238,354,745

11%

28,604,258

733.28

435,868,775

13%

58,326,245

647.29

(672,757,469)

(171,546,102)

Profit for the year

506,503,834

23%

60,784,048

733.28

926,221,146

27%

123,943,270

647.29

1,189,773,244

200,372,826

Other Comprehensive income

Foreign currency translation difference 6b

3,481,929

(36,404,838)

(109.56)

(2,900,131)

177,171,620

(101.64)

139,439,524

135,597,541

Investment Income received from TIU 6a 19

-

-

-

-

-

-

-

50,471,279

12,256,645

Other comprehensive income for the year

3,481,929

(36,404,838)

(109.56)

(2,900,131)

177,171,620

(101.64)

189,910,803

147,854,186

Total comprehensive income for the year

509,985,763

24,379,210

1,991.89

923,321,015

301,114,889

206.63

1,379,684,047

348,227,012

Basic earnings per share (kobo) 37

0.57

0.07

733.28

1.04

0.14

647.29

1.55

0.39

The notes on pages 15 to 32 form part of these financial statements.



DOCUMENT TITLE: 2025 SECOND QUARTER MANAGEMENT ACCOUNT

DOCUMENT NO.: TIP-FIN-MNG -0026

REV NO.: 00

THE INITIATES PLC

STATEMENT OF FINANCIAL POSITION

AS AT 30TH JUNE 2025

ACTUAL

HISTORICAL

CHANGE

2024

2023

Assets

Note

YTD 2025

YTD 2024

%

N

N

Non-current assets

Property, plant and equipment

15

1,963,823,802

1,884,644,597

4.20

1,930,266,501

1,531,133,502

Other non-current assets

17

4,596,867

9,916,875

(53.65)

4,596,867

17,907,467

Investment

19

105,619,312

105,619,312

-

105,619,312.00

105,259,214

2,074,039,981

2,000,180,785

3.69

2,040,482,680

1,654,300,183

Current assets

Inventories

17

59,718,956

26,365,023

126.51

29,152,525

13,576,920

Trade and other receivables

18

3,858,022,598

881,086,387

337.87

2,976,976,086

610,783,412

Cash and cash equivalents

20

43,205,392

31,252,168

38.25

47,580,386

199,663,455

Current tax assets

21

140,670,356

72,542,118

93.92

-

57,687,440

Other current assets

22

38,541,396

44,986,060

(14.33)

26,070,001

23,756,139

Total current assets

4,140,158,699

1,056,231,757

291.97

3,079,778,998

905,467,366

Total Assets

6,214,198,680

3,056,412,541

103.32

5,120,261,678

2,559,767,549

Equity and Liabilities

Equity

Share capital

23

444,990,776

444,990,776

-

444,990,776

444,990,776

Share premium

24

17,780,000

17,780,000

-

17,780,000

17,780,000

Revaluation reserve

25

303,473,535

303,473,535

-

303,473,535

303,473,535

Retained earnings

26

2,542,074,463

713,095,978

256.48

1,707,751,603

411,981,089

Total equity

3,308,318,774

1,479,340,289

123.63

2,473,995,914

1,178,225,400

Non-current liabilities

Deferred tax liabilities

14.4

244,915,280

122,126,879

100.54

267,041,580

122,126,879

Long Term Borrowing

30

200,000,000

500,000,000

(60.00)

350,000,000

550,000,000

Current liabilities

Trade and other payables

27

1,550,495,362

652,683,250

137.56

1,104,400,731

301,070,063

Current tax liabilities

14

439,342,104

76,279,575

475.96

386,375,722

16,685,346

Other current tax liabilities

28

463,245,981

155,991,976

196.97

353,915,595

118,846,934

Employees' benefits

29

7,881,179

7,931,708

(0.64)

5,726,408

2,995,027

Short term borrowing

30.2

(0)

62,058,864

-

178,805,728

269,817,900

Total current liabilities

2,460,964,626

954,945,373

157.71

2,029,224,184

709,415,270

Total liabilities

2,905,879,906

1,577,072,252

84.26

2,646,265,764

1,381,542,149

Total equity and liabilities

6,214,198,680

3,056,412,541

103.32

5,120,261,678

2,559,767,549







These financial statements were approved by the Board of Directors on 24TH JULY, 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



DOCUMENT TITLE: 2025 SECOND QUARTER MANAGEMENT ACCOUNT

DOCUMENT NO.: TIP-FIN-MNG -0026

REV NO.: 00

THE INITIATES PLC

STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD

ENDED 30TH JUNE 2025

Share

Share

Revaluation

Retained

Total

capital

premium

reserve

earnings

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

Dividend paid

(88,998,155)

(88,998,155)

Profit for the year

-

-

-

923,321,015

923,321,015

444,990,776

17,780,000

303,473,535

2,542,074,463

3,308,318,774

At 30th June

444,990,776

17,780,000

303,473,535

2,542,074,463

3,308,318,774

FOR THE PERIOD ENDED 30TH 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

-

-

-

301,114,889

301,114,889

444,990,776

17,780,000

303,473,535

713,095,978

1,479,340,289

At 30th June

444,990,776

17,780,000

303,473,535

713,095,978

1,479,340,289



STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 30TH JUNE 2025

ACTUAL Q2 2025

HISTORY

Q2 2024 CHANGE

ACTUAL YTD 2025

HISTORY YTD 2024

CHANGE 2024 2023

Note

N N % N N

% N N

Cashflow from Operating Activities

Cashflows from Operations Cash Paid to Suppliers Cash Paid to Employees Paid to Government (taxes) Total

1,708,395,806 505,737,240 237.80 2,700,140,000 1,192,594,576

(928,438,591) (344,439,949) 169.55 (2,086,002,091) (713,470,000)

(29,852,455) (19,356,423) 54.23 (53,843,491) (38,556,458)

(53,010,081) - - (78,127,297)

697,094,679 141,940,868 391.12 482,167,121 440,568,118

126.41 1,498,034,998 596,878,485

192.37 (646,769,516) (177,056,025)

39.65 (186,605,862) (115,384,096)

100.00 (17,890,570) (11,998,243)

9.44 646,769,050 292,440,121

Cashflow from Investment Activities Acquisition of property, plant and equipment Asset-in-transit

Investment Income Received from TIU

(77,607,200) (9,977,936) 677.79 (96,879,018) (292,073,352)

- - - -

- - 52,706,908 -

(66.83) (359,823,431) (173,131,600)

- (150,050,804) (120,589,302)

100.00 138,144,819 (118,967)

Total (77,607,200) (9,977,936) 677.79 (44,172,110) (292,073,352) (84.88) (371,729,416) (293,839,869)

Cashflow from Financing Activities

Borrowings

Repayment of borrowings Unclaimed dividends returned Interest on unclaimed dividends

Unclaimed dividends paid to Shareholders Finance cost

Dividend Payment

Total

Net Cash Flow

Opening Balance

Closing Balance 20

- 182,950,820

(511,756,548) (221,692,772) 130.84 (511,756,548) -

- - - (271,692,772)

- 283,331 (100.00) - 283,330.74

(835,116) (2,541,267) (67.14) (835,116) (2,541,267)

(17,293,565) (21,931,974) (21.15) (23,731,006) (42,955,354)

(88,998,155) - 100.00 (88,998,155) -

(618,883,384) (245,882,682)

151.70 (442,370,005) (316,906,062)

604,095 (113,919,750) (100.53) (4,374,994) (168,411,296)

42,601,298 145,171,919 (70.65) 47,580,386 199,663,455

43,205,392 31,252,168 38.25 43,205,392 31,252,159

100.00 656,864,418 269,817,900

100.00 (947,876,590) (150,000,000)

(100.00) - 514,782

(100.00) 493,529 -

(67.14) (3,000,000) -

(44.75) (80,205,167) -

100.00 (53,398,893) (78,298,206)

39.59 (427,122,703) 42,034,476

(97.40) (152,083,069) 40,634,728

(76.17) 199,663,455 159,028,727

38.25 47,580,386 199,663,455



NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30TH JUNE 2025

ACTUAL Q2 2025

HISTORY

Q2 2024 CHANGE

ACTUAL YTD 2025

HISTORY

YTD 2024 CHANGE 2024 2023

6. Revenue from contracts with customers

Waste Management Service Industrial Cleaning Service

The revenue from contracts with customers is made up of: TDU KWALE

TDU PHC

Incineration E- Waste Asbestos

ICS Vessel ICS FPSO

N

1,801,635,161

433,065,844

2,234,701,005

1,722,217,338

-55,764,347

23,653,475

-2,930,000

430,135,844

2,234,701,005

N % N N % N N

699,513,105 157.56 2,513,188,120 954,980,874 163.17 3,640,790,096 1,033,555,438

4,160,000 10,310.24 875,201,687 59,937,199 1,360.20 1,022,683,856 815,916,330

703,673,105

217.58 3,388,389,807 1,014,918,073 233.86 4,663,473,951.23 1,849,471,769

- 100.00 2,155,814,533 - 100.00 1,562,640,196 -

661,368,901 (100.00) 51,954,061 887,828,725 (94.15) 1,852,317,198 784,852,115

29,470,641 89.22 108,099,744 34,298,739 215.17 168,373,724 87,237,482

8,673,563 172.71 160,066,388 32,853,410 387.21 55,220,377 65,815,241

- - 37,253,394 - 100.00 2,238,600 95,650,600

- 100.00 14,930,000 15,859,717 (5.86) 3,510,000 104,632,827

4,160,000 10,239.80 860,271,687 44,077,482 1,851.73 1,019,173,856 711,283,504

703,673,105 217.58 3,388,389,807 1,014,918,073 233.86 4,663,473,951 1,849,471,769

6a. Other income Interest Received Dividend Received Debt recovery Sundry income

-4,559,108

90,000

4,649,108

- - - - 430 -

- - 52,706,908 - 100.00 138,504,917 134,405,771

29,438,242 100.00 - -

- - 7,477.71 - 100.00 934,177 1,191,770

- - 82,152,628 - 100.00 139,439,524 135,597,541

6b Foreign exchange gains

of foreign currency transactions during the year under review.

Foreign exchange gains

3,481,929

(36,404,838) (109.56) (2,900,131) 177,171,620 (101.64) 50,471,279 12,256,645



DOCUMENT TITLE: 2025 SECOND QUARTER MANAGEMENT ACCOUNT

DOCUMENT NO.: TIP-FIN-MNG -0026

REV NO.: 00

7. Cost of sales

Waste Collection and Haulage

365,197,057

131,928,340

176.81

483,065,407

181,765,040

165.76

545,443,490

431,121,284

Waste Treatment

513,694,125

150,234,800

241.93

554,682,595

150,411,100

268.78

158,593,108

-

Waste Disposal

144,977,701

100.00

164,955,451

-

1,100.00

12,473,100

80,125,390

Hiring of equipment

35,617,517

90,345,815.23

162.95

142,073,478

112,749,243.13

456.28

448,815,393

269,290,907

Diesel and lubricants

26,541,560

13,545,435

112.96

44,381,060

25,539,730

76.98

48,665,364

35,454,841

Repairs and Maintenance

19,653,280

12,463,012.00

935.01

28,535,613

25,076,358

100.00

95,717,102

29,606,787

Employee costs

24,275,605

1,898,854

(77.68)

47,214,186

3,811,854

(61.92)

71,166,737

38,369,606

Transport and travelling

4,376,536

108,739,877

(56.14)

12,006,493

124,002,716

(38.94)

12,015,290

16,890,545

Consumables

134,917,543

9,977,936

9,373.22

227,991,243

19,662,413

5,759.15

619,180,869

178,235,788

Depreciation (note 15)

18,417,557

1,424,200

2,494.02

36,130,239

3,891,200

1,520.19

56,562,167

38,162,233

Direct wages

3,937,000

710,000

197.22

6,095,000

2,230,000

12,090.00

49,944,389

16,985,025

Community relations and security

690,000

1,324,600

(47.91)

9,894,900

50,000

411.39

14,959,500

17,348,958

Compliance

4,535,569

2,658,634

70.60

11,891,042

1,934,895

46.76

18,664,451

17,689,375

Promotion / Advert

-

-

-

-

8,102,617

(100.00)

-

-

Business Development

-

268,750

(100.00)

-

537,500

(100.00)

1,441,000

2,251,600

1,296,831,049

525,520,254

146.77

1,768,916,707

659,764,666

168.11

2,153,641,960

1,171,532,339

8.

Staff costs

Staff Salaries and Wages (Corporate)

23,272,643

12,238,788

90.15

40,891,468

25,139,102

62.66

135,043,970

93,830,258

Staff Pensions (Employer)

1,530,000

832,681

83.74

2,662,625

1,753,763

51.82

4,004,562

5,220,296

Staff Welfare

-

230,000

(100.00)

-

330,000

(100.00)

29,820,000

5,752,000

Leave Allowance

739,200

866,580

(14.70)

1,683,000

2,144,340

(21.51)

-

-

Terminal Benefit

-

1,889,412

(100.00)

463,813

3,360,662

(86.20)

4,722,135

1,226,078

Medical Expense

4,310,612

3,298,962

30.67

8,142,585

5,828,592

39.70

13,015,195

9,355,464

29,852,455

19,356,423

54.23

53,843,491

38,556,458

39.65

186,605,862

115,384,096

8b.

Total employee costs recognised in profit or loss

Cost of sales

19,653,280

9,977,936

96.97

28,535,613

19,662,413

45.13

71,166,737

38,369,606

Administrative expenses

29,852,455

19,356,423

54.23

53,843,491

38,556,458

39.65

186,605,862

115,384,096

49,505,735

29,334,359

68.76

82,379,104

58,218,871

41.50

257,772,599

153,753,702

9. Depreciation and impairment loss

Depreciation

5,053,231

2,733,959

84.83

8,894,988

5,459,414

62.93

10,872,692

9,098,316



DOCUMENT TITLE: 2025 SECOND QUARTER MANAGEMENT ACCOUNT

DOCUMENT NO.: TIP-FIN-MNG -0026

REV NO.: 00

10. Administrative expenses

Directors' emolument

13,360,000

6,510,000

105.22

25,452,800

13,020,000

95.49

27,360,000

27,360,000

Board and AGM expenses

14,556,748

950,000

1,432.29

17,241,748

2,450,000

603.74

12,141,931

6,475,386

Directors' fees

1,300,000

687,500

89.09

2,600,000

1,375,000

89.09

5,200,000

2,750,000

Transport and travelling expenses

5,309,499

977,523

443.16

9,020,299

2,142,805

320.96

12,269,975

3,752,030

Legal and professional fees

16,449,781

425,000

3,770.54

49,363,779

5,301,874

831.06

12,294,141

9,056,865

Electricity

2,484,633

456,141

444.71

4,187,059

888,064

371.48

2,806,693

5,439,980

Fuel and diesel

27,318,412

7,795,000

250.46

49,330,062

12,508,875

294.36

42,372,670

22,036,070

Licenses and levies

255,000

252,200

1.11

375,000

382,200

(1.88)

464,700

1,625,067

Donation & Gift

1,000,000

220,000

354.55

1,620,000

220,000

636.36

1,890,000

500,000

Repairs and maintenance

17,505,800

3,828,800

357.21

19,688,100

6,275,500

213.73

11,116,100

6,434,400

Printing and stationery

421,755

360,097

17.12

1,163,162

590,609

96.94

1,666,489

1,552,018

Insurance

3,645,530

2,289,922

59.20

6,044,141

5,581,750

8.28

10,505,604

4,922,072

Telephone and postage

237,958

211,600

12.46

419,336

401,264

4.50

1,575,095

1,136,145

Entertainment

294,650

139,650

110.99

975,450

185,150

426.84

471,300

663,665

Internet expenses

3,534,496

7,555,071

(53.22)

4,098,518

8,186,890

(49.94)

7,377,432

319,250

QHSE Compliance

8,846,450

2,549,348

247.01

10,067,950

2,549,348

294.92

7,102,112

-

Industrial Training Fund

779,903

1,690,964

(53.88)

4,551,203

3,954,868

15.08

4,225,460

1,689,814

Bank charges

1,914,739

-

100.00

3,007,923

300,000

902.64

9,558,429

5,859,951

Training expenses

-

2,029,939

(100.00)

-

5,981,144

(100.00)

984,373

1,115,500

Local content tax

14,583,118

100.00

20,970,534

2,870,965

630.44

20,199,227

14,755,069

Subscription

-

-

-

962,748

-

100.00

9,369,136

2,625,172

Meal expenses

3,749,600

2,093,200

79.13

7,079,700

4,257,400

66.29

9,409,700

5,310,820

Corporate social responsibility

-

-

1,620,000

100.00

39,492,374

1,178,000

Balances written off

-

875,000

(100.00)

-

1,750,000

(100.00)

1,562

8,000

Auditors' remuneration

1,250,000

1,306,386

(4.32)

2,500,000

2,230,599

12.08

4,000,000

3,500,000

Provision for doubtful debts

-

-

-

-

-

169,049,145

-

Security expenses

3,543,932

100.00

6,107,864

-

100.00

9,213,856

3,819,135

Office and general expenses

3,119,230

1,538,847

102.70

4,618,947

2,508,370

84.14

8,666,791

7,725,081

145,461,234

44,742,189

225.11

253,066,322

85,912,676

194.56

440,784,295

141,609,490



DOCUMENT TITLE: 2025 SECOND QUARTER MANAGEMENT ACCOUNT

DOCUMENT NO.: TIP-FIN-MNG -0026

REV NO.: 00

THE INITIATES PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30TH JUNE 2025

13. Finance cost

This represents interests charged by Guaranty Trust Bank Plc and Wema Bank Plc on invoice discounting and loan facilities obtained respectively by The Initiates Plc.

ACTUAL

HISTORY

ACTUAL

HISTORY

Q2 2025

Q2 2024

CHANGE

Q2 2025

Q2 2024

CHANGE

2024

2023

N

N

N

N

Other financial charges

-

-

-

13,589,256

18,391,402

Interest on loans

17,293,565

21,931,974

(21.15)

23,731,006

42,955,345

(44.75)

66,615,911

59,906,804

17,293,565

21,931,974

(21.15)

23,731,006

42,955,345

(44.75)

80,205,167

78,298,206

14. Taxation

14a Income tax expense

Company income tax

223,457,574

26,816,492

733.28

408,626,976

54,680,854

647.29

459,654,297

90,673,352

Education tax

14,897,172

1,787,766

733.28

27,241,798

3,645,390

647.29

60,682,662

16,658,550

Police Trust Fund

37,243

4,469

733.28

68,104

9,113

647.29

102,622

25,989

NASENI

1,862,146

223,471

733.28

3,405,225

455,674

647.29

5,131,104

-

240,254,135

28,832,198

733.28

439,342,104

58,791,032

647.29

525,570,685

107,357,891

-

-

Prior year under-provision

-

-

2,272,083.00

24,580,523.00

Current tax expense

240,254,135

28,832,198

733.28

439,342,104

58,791,032

647.29

527,842,768

131,938,414

Deferred tax

-

-

-

-

144,914,701

39,607,688

Income tax expense as per profit or loss

240,254,135

28,832,198

733.28

439,342,104

58,791,032

647.29

672,757,469

171,546,102

14b Current tax liabilities

Movement in Income tax liabilities

At 1 January

-

-

-

-

17,953,330

(100.00)

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

240,254,135

28,832,198

733

439,342,104

58,326,245

653.25

525,570,685

107,357,891

Withholding tax credit notes applied

-

-

-

-

-

-

(140,261,822)

(112,332,120)

At 30th June

240,254,135

28,832,198

733.28

439,342,104

76,279,575

475.96

386,375,722

16,685,346

14.3 Reconciliation of effective tax rate

Profit for the year before tax

744,858,579

89,388,306

733.28

1,362,089,921

182,269,514

647.29

2,052,441,515

519,773,114

Dividends received from foreign investment

-

-

(52,706,908)

-

(138,504,917)

(12,256,645)

Unrealized exchange gains

744,858,579

89,388,306

733.28

1,309,383,013

182,269,514

618.38

1,913,936,598

507,516,469

Company Income Tax

223,457,574

26,816,492

733.28

392,814,904

54,680,854

574,180,979

152,254,940

Education Tax

14,897,172

1,787,766

733.28

27,241,798

3,645,390

647.29

57,418,098

15,225,494

Police Trust Fund

37,243

4,469

65,469

9,113

102,622

25,989

NASENI

1,862,146

223,471

3,273,458

455,674

5,131,104

-

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)

Under-provision in prior year

-

-

-

-

-

-

2,272,083

24,580,523

-

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

240,254,135

28,832,198

423,395,629

58,791,032

672,757,469

171,546,102

Effective tax rate

32

32

-

31

32

(3.63)

35

34

-

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