Initiates PlcNSENG: TIP

Quarter 3 - financial statement for 2025

· Issued by Initiates Plc
THE INITIATES PLC 3RD QUARTER UNAUDITED ACCOUNT FOR PERIOD ENDED 30TH SEPTEMBER 2025


2025

TIP FINANCE DEPARTMENT

9/30/2025



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 third quarter ended 30thSeptember 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 30thSeptember 2025 were approved by directors on 29thof October 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 THIRD QUARTER ENDED 30TH SEPTEMBER 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 SEPTEMBER 2025

COMPANY NAME: THE INITIATES PLC.

BOARD LISTED: GROWTH BOARD

YEAR END: 31ST DECEMBER

REPORTING PERIOD 2025 THIRD QUARTER (1ST JULY - 30TH SEPTEMBER 2025)

SHARE PRICE AS AT REPORTING DATE: N14.60 (2024: N1.90)

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

167,876,189

18.86

190,695,237

21.43

AFOLAYAN SAMUEL OLAJIDE

128,438,526

14.43

124,708,366

14.01

RICHGATE INVEST SEC LTD

65,934,510

7.41

121,757,898

13.68

OBOH-OZOHEREBE GORDON

-

-

58,568,412

6.58

Total Substantial Shareholdings

362,249,225

40.70

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

OBOH-OZOHEREBE GORDON

11,500,000

1.29

-

-

Total Directors' Shareholdings

70,472,557

7.92

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

451,827,488

50.77

329,846,800

37.06

Free Float in Value ₦ 6,596,681,324.80

₦ 626,708,920.00

  1. THE INITIATES Plc with a free float percentage of 50.77% as at 30th September 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 N6,596,681,324.80 as at 30th September 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 Third quarter ended 30th September 2025; and hereby state as follows:

  1. We examined the accounting entries, policies and bases for preparation of the Third quarter ended 30th September 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 Third quarter ended 30th September 2025; are in accordance with legal requirements and agreed ethical practices.

In our opinion, the accounting entries, policies and bases of this Management account Third quarter ended 30th September 2025; was adequate and Management's response to Internal Auditors' findings thereon was satisfactory.

Dated 26th October, 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 THIRD QUARTER (JULY - SEPTEMBER)

TIP reported a total revenue of NGN 1.991B (2024 Q3: NGN 1.330B) which represent 49.75% increase over same period in 2024. A Gross Profit of N1.482 Billion naira was reported for the quarter as against N 461.91 million reported in Q3 2024 showing a significant performance with a Net Profit before tax of N 1.274 Billion naira as against the Profit of N430.9 million reported in Q3 2024.

YEAR TO DATE ENDED 30TH SEPTEMBER 2025 REPORT (JAN - SEPT 2025)

TIP posted a total revenue of NGN5.380 billion (2024: N2.345B) which represent over 129.39% increase as at 2024 Q3. A gross Profit of N3.126 billion naira was reported for the period showing a remarkable performance in comparison to Q3 2024 (N817.87Million). The Net Profit before tax of N2,711 billion naira reported is also an improvement of the net profit before tax of N689.89 million reported as at September 30th 2024 by 292.93 %.

BALANCE SHEET:

TIP Balance Sheet value shows a Total Asset of over NGN 7,398B as at 30th September, 2025

  1. Trade Receivables: This stood at NGN4.779B as 30th September, 2025 and NGN 1.747B receivable is above 90 days.

  2. Trade Payable: NGN1,289b is the Account Payable balance as at the close of business (COB) on the 30th September, 2025.

  3. Measurement of Liquidity:

    TIP liquidity including Cash & Cash Equivalent at the close of the September 30th 2025 shows NGN342.48M with the total borrowings reduced to NGN200M.



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

  4. DASHBOARD

S/N

PARAMETER

QTLY RESULT

YEAR TO DATE RESULT.

1

Turnover

1,991,280,888

5,379,670,695

2

Non-Oil & Gas Revenue

2,975,000

36,962,442

3

WMS Revenue

1,387,752,912

3,900,941,032

4

WMS Oprex

332,330,362

1,799,977,275

5

ICS Revenue

603,527,975

1,478,729,663

6

ICS Oprex

177,091,314

453,359,761

7

Admin Cost

210,204,748

500,278,187

8

Operational Net Profit

1,274,234,853

2,710,767,827

9

Borrowing

200,000,000

200,000,000

10

Working Capital

2,533,332,115

2,533,332,115

11

New Client

-

3

12

New Project

2

5

13

Earnings Per Share

0.97

2.06

14

Gross Profit Margin

74.42

58.11

15

Net Profit Margin

43.35

34.14

16

Net Asset Per Shares

4.69

4.69

17

Return on Capital Employed

18.22

38.76

18

Current Ratios

1.95

1.95

19

Net Working Capital:

1.27

0.47

20

Fixed Asset Turnover:

0.95

2.58

21

Receivables Turnover

0.83

2.25

22

Payables Turnover

1.02

4.03

23

Return On Equity

0.27

0.44

24

Return On Assets

0.27

0.73

25

Price Earning per Share

15.05

7.08

26

Gearing Ratio

0.05

0.05

27

Return on Sales

0.64

0.50

28

Annual Revenue Increase

(0.11)

0.59

29

Annual Net Profit Increase

1.95

2.91

30

Net Profit Per Staff

14,883,282.78

30,606,827.74

The Management and Board are pleased that this continuous growth 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

THE INITIATES PUBLIC LIMITED COMPANY

HIGHLIGHT OF ACCOUNT FOR THE PERIOD ENDED 30TH SEPTEMBER 2025

STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30TH SEPTEMBER

THREE MONTHS ENDED 30TH SEPTEMBER

YEAR TO DATE ENDED 30TH SEPTEMBER

ACTUAL

HISTROY

CHANGE

ACTUAL

HISTROY

CHANGE

N'Mn

N'Mn

%

N'Mn

N'Mn

%

Revenue

1,991.28

1,329.73

49.75

5,379.67

2,345.25

129.39

Direct cost

509.42

867.82

(41.30)

2,253.34

1,527.39

47.53

Gross Profit

1,481.86

461.91

220.81

3,126.33

817.87

282.25

Other Income

2.58

61.99

100.00

84.71

136.28

100.00

Total Indirect Cost

202.87

82.08

147.14

464.49

210.40

120.77

Financial Cost

7.34

10.87

(32.46)

35.79

53.87

(33.56)

Profit Before Tax

1,274.23

430.95

195.68

2,710.77

689.89

292.93

Provision of Income Tax Expense

411.00

137.90

198.04

874.36

220.76

296.06

Profit for the period

863.23

293.04

194.57

1,836.41

469.12

291.46

STATEMENT OF FINANCIAL POSITION

AS AT 30TH SEPTEMBER

ACTUAL

HISTROY

CHANGE

ASSETS

N'Mn

N'Mn

%

Non-Current Assets

Property, plant and Equipment

2,085.21

1,932.09

7.93

Other non - current asset

4.60

9.19

(49.99)

Investment

114.46

105.62

8.37

Total Non-Current Assets

2,204.27

1,941.28

13.55

Current Assets

Inventories

48.88

17.30

182.51

Trade receivables

4,779.70

1,489.10

220.98

Cash and cash equivalents

342.48

107.19

219.53

Current tax assets

0.00

76.30

(100.00)

Other current tax assets

22.93

31.84

(27.99)

Total current Asset

5,193.99

1,721.73

201.67

Total Assets

7,398.26

3,663.01

101.97

Non-Current Liabilities

Deferred tax

360.04

122.13

194.81

Long Term Borrowing

200.00

400.00

(50.00)

Total Non-Current Liability

560.04

522.13

7.26

Current Liabilities

Trade and Other payables

1,289.81

1,015.72

26.98

Other current tax liabilities

874.36

220.76

296.06

Other current tax liabilities

492.73

220.31

123.65

Employees' benefits

3.77

4.77

(21.08)

Short term borrowings

(0.00)

182.83

100.00

Total current liabilities

2,660.66

1,644.40

61.80

Total Liabilities

3,220.70

2,166.53

48.66

Working Capital

2,533.33

77.33

3,176.06

Net Asset

4,177.56

1,496.48

179.16



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

KEY RATIOS

THREE MONTHS ENDED 30TH SEPTEMBER

YEAR TO DATE ENDED 30TH SEPTEMBER

Q3 2025

Q3 2024

YTD 2025

YTD 2024

Earnings Per Share

0.97

0.33

2.06

0.53

Gross Profit Margin

74.42

34.74

58.11

34.87

Net Profit Margin

43.35

22.04

34.14

20.00

Net Asset Per Shares

4.69

1.80

4.69

1.80

Return on Capital Employed

18.22

13.80

38.76

22.08

Current Ratios

1.95

1.05

1.95

1.05

Net Working Capital:

1.27

0.06

0.47

0.03

Fixed Asset Turnover:

0.95

0.69

2.58

1.21

Receivables Turnover

0.83

1.79

2.25

7.23

Payables Turnover

1.02

1.82

4.03

3.28

Return On Equity

0.27

0.35

0.44

0.29

Return On Assets

0.27

0.35

0.73

0.62

Price Earning per Share

15.05

5.77

7.08

3.60

Gearing Ratio

0.05

0.25

0.05

0.25

Return on Sales

0.64

0.64

0.50

0.50

Annual Revenue Increase

(0.11)

0.89

0.59

1.31

Annual Net Profit Increase

1.95

(0.61)

2.91

(0.66)

Net Profit Per Staff

14,883,282.78

5,980,484.24

30,606,827.74

9,573,940.69

TIP Q3

Q3 2025 ACTUAL N'Mn

Q3 2024 HISTORY N'Mn

8,000.00

7,000.00

6,000.00

5,000.00

4,000.00

3,000.00

2,000.00

1,000.00

-



Graphical representation of TIP'S THIRD QUARTER 2025 Performance

TIP YEAR -TO - DATE SEPT 2025

8,000.00

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 2024 HISTORY N'Mn



Graphical representation of TIP'S YTD SEPT 2025 Performance





DOCUMENT TITLE: 2025 THIRD 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 SEPTEMBER 2025

ACTUAL Q3 2025

REVENUE

HISTORY Q3 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

1,991,280,888

100%

1,329,729,276

49.75

5,379,670,695

100%

2,345,254,564

129.39

4,663,473,951

1,849,471,769

Cost of sales 7

509,421,676

26%

867,818,682

(41.30)

2,253,337,036

42%

1,527,386,548

47.53

2,153,641,960

1,171,532,339

Gross profit

1,481,859,212

74%

461,910,593

220.81

3,126,333,659

58%

817,868,016

282.25

2,509,831,991

Other income 6a

2,580,389

0%

61,986,458

-

84,712,356

2%

136,281,705

-

Staff costs 8

48,499,181

2%

24,183,736

100.54

102,988,623

2%

62,740,194

64.15

115,439,125

77,014,490

Depreciation and impairment loss 9

8,959,769

0%

2,301,175

289.36

17,917,900

0%

6,908,334

159.37

10,872,692

9,098,316

Administrative expenses 10

145,406,118

7%

55,598,822

161.53

343,580,679

6%

140,748,585

144.11

440,784,295

141,609,490

Total Indirect Cost

202,865,069

10%

82,083,733

147.14

464,487,203

9%

210,397,114

120.77

567,096,112

227,722,296

Results from operating activities

1,281,574,532

64%

441,813,318

190.07

2,746,558,812

51%

743,752,608

269.28

1,942,735,879.44

(227,722,296)

Finance cost 13

7,339,679

0%

10,866,660

(32.46)

35,790,985

1%

53,865,705

(33.56)

80,205,166.90

78,298,206

Profit before tax

1,274,234,853

64%

430,946,658

195.68

2,710,767,827

50%

689,886,902

292.93

1,862,530,713

(306,020,502)

Provision for Income tax expense 14.1

411,004,452

21%

137,902,931

198.04

874,358,163

16%

220,763,809

296.06

(672,757,469)

(171,546,102)

Profit for the year

863,230,401

43%

293,043,728

194.57

1,836,409,665

34%

469,123,094

291.46

1,189,773,244

(477,566,604)

Other Comprehensive income

Foreign currency translation difference 6b

(8,075,981)

12,038,050

(167.09)

(43,846,144)

8,148,161

(638.11)

139,439,524

135,597,541

Investment Income received from TIU 6a 23.3

-

-

-

-

-

-

-

50,471,279

12,256,645

Other comprehensive income for the year

(8,075,981)

12,038,050

(167.09)

(43,846,144)

8,148,161

(638.11)

189,910,803

147,854,186

Total comprehensive income for the year

855,154,420

305,081,778

180.30

1,792,563,521

477,271,255

275.59

1,379,684,047

(329,712,418)

Basic earnings per share (kobo) 35

0.97

0.33

194.57

2.06

0.53

291.46

1.55

(0.37)

The notes on pages 15 to 29 form part of these financial statements.



DOCUMENT TITLE: 2025 THIRD QUARTER MANAGEMENT ACCOUNT

DOCUMENT NO.: TIP-FIN-MNG -0026

REV NO.: 00

THE INITIATES PLC

STATEMENT OF FINANCIAL POSITION

AS AT 30TH SEPTEMBER 2025

ACTUAL

HISTORICAL

CHANGE

2024

2023

Assets

Note

YTD 2025

YTD 2024

%

N

N

Non-current assets

Property, plant and equipment

15

2,085,213,965

1,932,085,570

7.93

1,930,266,501

1,531,133,502

Other non-current assets

17

4,596,867

9,191,250

(49.99)

4,596,867

17,907,467

Investment

20

114,457,724

105,619,312

8.37

105,619,312.00

105,259,214

2,204,268,556

2,046,896,133

35

2,040,482,680

1,654,300,183

Current assets

Inventories

18

48,881,779

17,302,907

182.51

29,152,525

13,576,920

Trade and other receivables

19

4,779,700,172

1,489,099,924

220.98

2,976,976,086

610,783,412

Cash and cash equivalents

21

342,483,762

107,185,273

219.53

47,580,386

199,663,455

Current tax assets

22

0

76,303,922

(100.00)

-

57,687,440

Other current assets

23

22,926,674

31,838,020

(27.99)

26,070,001

23,756,139

Total current assets

5,193,992,388

1,721,730,047

201.67

3,079,778,998

905,467,366

Total Assets

7,398,260,944

3,768,626,180

96.31

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

3,411,316,968

835,853,450

308.12

1,707,751,603

411,981,089

Total equity

4,177,561,279

1,602,097,761

160.76

2,473,995,914

1,178,225,400

Non-current liabilities

2,575,463,518

Deferred tax liabilities

14.4

360,039,392

122,126,879

194.81

267,041,580

122,126,879

Long Term Borrowing

31

200,000,000

400,000,000

(50.00)

350,000,000

550,000,000

Current liabilities

Trade and other payables

28

1,289,808,389

1,015,717,947

26.98

1,104,400,731

301,070,063

Current tax liabilities

14

874,358,163

220,763,809

296.06

386,375,722

16,685,346

Other current tax liabilities

29

492,727,498

220,314,977

123.65

353,915,595

118,846,934

Employees' benefits

30

3,766,223

4,772,224

(21.08)

5,726,408

2,995,027

Short term borrowing

31.2

(0)

182,832,583

-

178,805,728

269,817,900

Total current liabilities

2,660,660,272

1,644,401,539

61.80

2,029,224,184

709,415,270

Total liabilities

3,220,699,664

2,166,528,418

48.66

2,646,265,764

1,381,542,149

Total equity and liabilities

7,398,260,944

3,768,626,180

96.31

5,120,261,678

2,559,767,549

These financial statements were approved by the Board of Directors on 30TH SEPTEMBER, 2025 and signed on 29th October 2025 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 15 to 29 form part of



DOCUMENT TITLE: 2025 THIRD 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 SEPTEMBER 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

Dividend paid

(88,998,155)

(88,998,155)

Profit for the year

-

-

-

1,792,563,521

1,792,563,521

444,990,776

17,780,000

303,473,535

3,411,316,968

4,177,561,279

At 30th September

444,990,776

17,780,000

303,473,535

3,411,316,968

4,177,561,279

FOR THE PERIOD ENDED 30TH SEPEMBER 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

-

-

-

477,271,255

477,271,255

444,990,776

17,780,000

303,473,535

889,252,344

1,655,496,655

At 30th September

444,990,776

17,780,000

303,473,535

889,252,344

1,655,496,655



DOCUMENT TITLE: 2025 THIRD QUARTER MANAGEMENT ACCOUNT

DOCUMENT NO.: TIP-FIN-MNG -0026

REV NO.: 00

THE INITIATES PLC STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 30TH SEPTEMBER 2025

ACTUAL Q3 2025

HISTORY Q3 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

1,630,771,176

703,526,777

131.80

4,063,394,708

1,120,679,613

262.58

1,498,034,998

596,878,485

Cash Paid to Suppliers

(873,642,400)

(446,754,502)

95.55

(2,831,995,882)

(826,231,161)

242.76

(646,769,516)

(177,056,025)

Cash Paid to Employees

(78,414,315)

(24,183,736)

224.24

(181,673,317)

(62,740,194)

189.56

(186,605,862)

(115,384,096)

Paid to Government (taxes)

(53,010,081)

-

100.00

(53,010,081)

(19,798,671)

167.75

(17,890,570)

(11,998,243)

Total

625,704,380

232,588,539

169.02

996,715,427

211,909,586

370.35

646,769,050

292,440,121

Cashflow from Investment Activities

Acquisition of property, plant and equipment

(322,561,764)

(63,999,214)

404.01

(451,605,298)

(93,143,180)

384.85

(509,874,235)

(293,720,902)

Dividend received

-

61,986,458

52,706,908

136,281,705

(61.33)

138,144,819

(118,967)

Dividend Paid

-

(53,789,235)

(88,998,155)

(53,957,135)

64.94

(53,398,893)

514,782

Unclaimed dividends paid to Shareholders

2,565,389

(3,001,466)

(1,884,196)

(3,001,466)

(37.22)

(3,000,000)

Total

(319,996,376)

(58,803,457)

444.18

(489,780,740)

(13,820,076)

3,443.98

(428,128,309)

(293,325,087)

Cashflow from Financing Activities

Equity

3

-

-

-

-

Borrowings

-

399,750,000

182,950,820

399,750,000

(54.23)

656,864,418

269,817,900

Repayment of borrowings

-

(486,735,317)

(361,756,548)

(636,735,317)

(43.19)

(947,876,590)

(150,000,000)

Interest on unclaimed dividends

2,565,389

-

2,565,402

283,331

805.44

493,529

-

Finance cost

(7,339,679)

(10,866,660)

(35,790,985)

(53,865,705)

(33.56)

(80,205,167)

(78,298,206)

Total

(4,774,290)

(97,851,977)

(95.12)

(212,031,311)

(290,567,692)

(27.03)

(370,723,810)

41,519,694

Net Cash Flow

300,933,714

75,933,105

296.31

294,903,376

(92,478,182)

(418.89)

(152,083,069)

40,634,728

Opening Balance

41,550,047

31,252,168

32.95

47,580,386

199,663,455

(76.17)

199,663,455

159,028,727

Closing Balance

21

342,483,762

107,185,273

219.53

342,483,762

107,185,273

219.53

47,580,386

199,663,455



DOCUMENT TITLE: 2025 THIRD 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 SEPTEMBER 2025

ACTUAL Q3 2025

HISTORY

Q3 2024 CHANGE

ACTUAL YTD 2025

HISTORY YTD

2024 CHANGE 2024 2023

  1. 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 N % N N % N N

    1,387,752,912 1,241,234,306 11.80 3,900,941,032 2,196,822,396 77.57 3,640,790,096 1,033,555,438

    603,527,975 88,494,969 581.99 1,478,729,663 148,432,168 896.23 1,022,683,856 815,916,330

    1,991,280,888 1,329,729,276 49.75 5,379,670,695 2,345,254,564 129.39 4,663,473,951.23 1,849,471,769

    967,252,505 100.00 3,042,615,937 100.00 1,562,640,196 -

    319,465,899 1,147,385,390 (72.16) 431,976,537 2,029,861,332 (78.72) 1,852,317,198 784,852,115

    77,661,204 84,074,991 (7.63) 219,903,222 118,373,730 85.77 168,373,724 87,237,482

    23,373,305 7,535,325 210.18 169,191,943 46,348,734 265.04 55,220,377 65,815,241

    - 2,238,600 (100.00) 37,253,394 2,238,600.00 1,564.14 2,238,600 95,650,600

    575,000 100.00 13,375,000 48,237,482 (72.27) 3,510,000 104,632,827

    602,952,975 88,494,969 581.34 1,465,354,663 100,194,686 1,362.51 1,019,173,856 711,283,504

    1,991,280,888 1,329,729,276 49.75 5,379,670,695 2,345,254,564 129.39 4,663,473,951 1,849,471,769

    6a. Other income Interest Received Dividend Received Debt recovery

    Sundry income

    2,565,389 100.00 2,565,402 - 100.00 430 -

    - 61,986,458 (100.00) 52,706,908 136,281,705 (61.33) 138,504,917 134,405,771

    - - 29,417,468 100.00 - -

    15,000 - 100.00 22,577.71 - 100.00 934,177 1,191,770

    2,580,389 61,986,458 - 84,712,356 136,281,705 (37.84) 139,439,524 135,597,541

    6b Foreign exchange gains

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

    Foreign exchange gains

    (8,075,981) 12,038,050 (167.09) (43,846,144) 8,148,161 (638.11) 50,471,279 12,256,645

  2. Cost of sales

Waste Collection and Haulage Waste Treatment

Waste Disposal Hiring of equipment Diesel and lubricants

Repairs and Maintenance Employee costs Transport and travelling Consumables Depreciation

Direct wages

Community relations and security Compliance

Promotion / Advert Business Development

128,835,454 160,616,250 (19.79) 621,952,375 342,381,290 81.65 545,443,490 431,121,284

28,524,400 200,200,000 (85.75) 589,366,895 206,726,208 185.10 158,593,108 -

1,745,000 56,210,108 100.00 166,700,451 200,000,000 (16.65) 12,473,100 80,125,390

22,273,400 80,814,067 (72.44) 164,346,878 193,563,310.31 (15.09) 448,815,393 269,290,907

31,440,875 31,000,000 100.00 83,868,813 55,196,101 51.95 48,665,364 35,454,841

30,524,942 12,922,908 136.21 56,355,362 38,450,838 46.56 95,717,102 29,606,787

29,915,133 18,786,554 59.24 78,684,694 43,862,912 79.39 71,166,737 38,369,606

6,110,977 2,970,899 105.69 18,117,470 6,712,753 169.90 12,015,290 16,890,545

161,466,862 240,193,384 (32.78) 336,513,880 340,000,000 (1.03) 619,180,869 178,235,788

20,538,066 15,109,321 35.93 63,103,711 34,771,734 81.48 56,562,167 38,162,233

7,789,375 38,877,689 (79.96) 12,419,000 42,768,889 (70.96) 49,944,389 16,985,025

20,740,000 1,779,500 1,065.50 30,634,900 3,210,000 854.36 14,959,500 17,348,958

12,715,091 477,300 2,563.96 24,470,508 1,864,300 1,212.58 18,664,451 17,689,375

6,302,100 3,061,817 105.83 6,302,100 4,996,712 26.12 - -

500,000 4,798,885 (89.58) 500,000 12,881,501 (96.12) 1,441,000 2,251,600

509,421,676 867,818,682 (41.30) 2,253,337,036 1,527,386,548 47.53 2,153,641,960 1,171,532,339



DOCUMENT TITLE: 2025 THIRD 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 SEPTEMBER 2025

ACTUAL

HISTORY

ACTUAL

HISTORY

Q3 2025

Q3 2024 CHANGE

YTD 2025

YTD 2024

CHANGE

2024 2023

Staff costs

N

N %

N

N

%

N N

Staff Salaries and Wages (Corporate)

30,450,406

17,348,412 75.52

71,341,875

42,487,514

67.91

135,043,970 93,830,258

Staff Pensions (Employer)

2,141,575

772,353 177.28

4,804,200

2,526,115

90.18

4,004,562 5,220,296

Staff Welfare

150,000

1,127,000 (86.69)

150,000

1,457,000

(89.70)

29,820,000 5,752,000

Leave Allowance

6,131,400

429,000 1,329.23

7,814,400

2,573,340

203.67

- -

Terminal Benefit

2,652,776

1,202,661 120.58

2,957,776

4,563,323

(35.18)

4,722,135 1,226,078

Medical Expense

6,973,025

3,304,311 111.03

15,920,373

9,132,903

74.32

13,015,195 9,355,464

48,499,181

24,183,736 100.54

102,988,623

62,740,194

64.15

186,605,862 115,384,096

Total employee costs recognised in profit or loss

Cost of sales

29,915,133

2,970,899 906.94

78,684,694

6,712,753

1,072.17

71,166,737 38,369,606

Administrative expenses

48,499,181

24,183,736 100.54

102,988,623

62,740,194

64.15

186,605,862 115,384,096

78,414,315

27,154,635 188.77

181,673,317

69,452,947

161.58

257,772,599 153,753,702

Depreciation and impairment loss

Depreciation

8,959,769

2,301,175 289.36

17,917,900

6,908,334

159.37

10,872,692 9,098,316

Administrative expenses

Directors' emolument

13,020,000

6,340,000 105.36

38,472,800

19,360,000

98.72

27,360,000 27,360,000

Board and AGM expenses

1,480,000

6,831,931 (78.34)

18,721,748

9,281,931

101.70

12,141,931 6,475,386

Directors' fees

1,300,000

1,912,500 (32.03)

3,900,000

3,287,500

18.63

5,200,000 2,750,000

Transport and travelling expenses

3,490,385

1,393,850 150.41

10,694,883

4,608,305

132.08

12,269,975 3,752,030

Legal and professional fees

61,799,279

2,734,492 2,159.99

112,163,059

8,036,366

1,295.69

12,294,141 9,056,865

Electricity

2,756,601

738,290 273.38

6,943,660

1,626,353

326.95

2,806,693 5,439,980

Fuel and diesel

10,525,050

9,215,900 14.21

24,106,913

21,794,775

10.61

42,372,670 22,036,070

Licenses and levies

102,500

45,500 125.27

477,500

427,700

11.64

464,700 1,625,067

Donation & Gift

622,000

450,000 38.22

2,242,000

677,000

231.17

1,890,000 500,000

Repairs and maintenance

5,866,400

3,049,600 92.37

10,250,500

9,309,100

10.11

11,116,100 6,434,400

Printing and stationery

1,335,007

319,351 318.04

3,289,095

909,960

261.45

1,666,489 1,552,018

Insurance

2,163,990

2,283,241 (5.22)

8,538,742

7,970,033

7.14

10,505,604 4,922,072

Telephone and postage

260,142

225,900 15.16

679,478

627,164

8.34

1,575,095 1,136,145

Entertainment

33,800

109,350 (69.09)

1,485,000

288,500

414.73

471,300 663,665

Internet expenses

2,222,859

152,143 1,361.03

6,224,352

7,970,033

(21.90)

7,377,432 319,250

QHSE Compliance

2,770,950

587,314 371.80

13,178,650

1,452,079

807.57

7,102,112 -

Industrial Training Fund

1,009,671

4,242,637 (76.20)

3,034,980

8,200,784

(62.99)

4,225,460 1,689,814

Bank charges

4,369,074

356,373 1,125.98

7,545,951

656,373

1,049.64

9,558,429 5,859,951

Training expenses

50,000

6,892,633 (99.27)

50,000

12,873,777

(99.61)

984,373 1,115,500

Local content tax

16,376,653

681,807 2,301.95

37,347,187

3,552,772

951.21

20,199,227 14,755,069

Subscription

1,314,532

2,508,900 (47.61)

2,277,280

6,766,000

(66.34)

9,369,136 2,625,172

Meal expenses

4,382,750

- 100.00

11,009,500

-

100.00

9,409,700 5,310,820

Corporate social responsibility

-

- -

-

-

-

39,492,374 1,178,000

Balances written off

-

875,000 (100.00)

-

2,625,000

(100.00)

1,562 8,000

Auditors' remuneration

4,750,000

2,417,921 96.45

7,250,000

4,648,520

55.96

4,000,000 3,500,000

Provision for doubtful debts

-

- -

-

-

-

169,049,145 -

Security expenses

1,995,955

- 100.00

8,103,818

-

100.00

9,213,856 3,819,135

Office and general expenses

1,408,520

1,234,190 14.12

5,593,584

3,798,561

47.26

8,666,791 7,725,081

145,406,118

55,598,822 161.53

343,580,679

140,748,585

144.11

440,784,295 141,609,490



DOCUMENT TITLE: 2025 THIRD 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 SEPTEMBER 2025

13. Finance cost

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

ACTUAL

HISTORY

ACTUAL

HISTORY

Q3 2025

Q3 2024

CHANGE

YTD 2025

YTD 2024

CHANGE

2024

2023

N

N

N

N

Other financial charges

120,184

2,005,075

(94.01)

4,840,484

2,005,075

141.41

13,589,256

18,391,402

Interest on loans

7,219,495

8,861,585

(18.53)

30,950,501

51,860,630

(40.32)

66,615,911

59,906,804

7,339,679

10,866,660

(32.46)

35,790,985

53,865,705

(33.56)

80,205,167

78,298,206

14. Taxation

14a Income tax expense

Company income tax

382,270,456

129,283,998

195.68

813,230,348

206,966,071

292.93

459,654,297

90,673,352

Education tax

25,484,697

8,618,933

195.68

54,215,357

13,797,738

292.93

60,682,662

16,658,550

Police Trust Fund

63,712

-

100.00

135,538

100.00

102,622

25,989

NASENI

3,185,587

-

100.00

6,776,920

100.00

5,131,104

-

411,004,452

137,902,931

198.04

874,358,163

220,763,809

296.06

525,570,685

107,357,891

-

-

Prior year under-provision

-

-

2,272,083.00

24,580,523.00

Current tax expense

411,004,452

137,902,931

198.04

874,358,163

220,763,809

296.06

527,842,768

131,938,414

Deferred tax

-

-

-

-

144,914,701

39,607,688

Income tax expense as per profit or loss

411,004,452

137,902,931

198.04

874,358,163

220,763,809

296.06

672,757,469

171,546,102

14b Current tax liabilities

Movement in Income tax liabilities

At 1 January

-

17,953,330

-

-

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

-

(17,953,330)

-

(17,953,330)

-

(17,890,570)

(11,998,243)

Tax charge for the year

411,004,452

137,902,931

198

874,358,163

220,763,809

296.06

525,570,685

107,357,891

Withholding tax credit notes applied

-

-

-

-

-

-

(140,261,822)

(112,332,120)

At 30th September

411,004,452

137,902,931

198.04

874,358,163

220,763,809

296.06

386,375,722

16,685,346

14.3 Reconciliation of effective tax rate

Profit for the year before tax

1,274,234,853

430,946,658

195.68

2,710,767,827

689,886,902

292.93

2,052,441,515

519,773,114

Dividends received from foreign investment

(138,504,917)

(12,256,645)

Unrealized exchange gains

1,274,234,853

430,946,658

195.68

2,710,767,827

689,886,902

292.93

1,913,936,598

507,516,469

Company Income Tax

382,270,456

129,283,998

195.68

813,230,348

206,966,071

574,180,979

152,254,940

Education Tax

25,484,697

8,618,933

195.68

54,215,357

13,797,738

292.93

57,418,098

15,225,494

Police Trust Fund

63,712

21,547

135,538

34,494

102,622

25,989

NASENI

3,185,587

1,077,367

6,776,920

1,724,717

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)

411,004,452

139,001,845

874,358,163

222,523,020

672,757,469

171,546,102

Effective tax rate

32

32

-

32

32

0.00

35

34

-



DOCUMENT TITLE: 2025 THIRD 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 SEPTEMBER 2025

14.4

Deferred tax liabilities

ACTUAL

HISTORICAL

CHANGE

Accelerated tax

Revaluation

YTD 2025

YTD 2024

Depreciation

Surplus

Total

N

N

%

N

N

At 1 January 2025

122,126,879

122,126,879

(0.00)

100,000,579

22,126,300

122,126,879

Movement in the year

144,914,701

-

(100)

144,914,701

144,914,701

At 30th September 2025

267,041,580

122,126,879

118.66

244,915,280

22,126,300

267,041,580

Movement during the period

92,997,812

-

-

92,997,812

-

92,997,812

At 30th September 2025

360,039,392

122,126,879

194.81

337,913,092

22,126,300

360,039,392

  1. Property, Plant and Equipment

    1. Summary

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

ACTUAL

HISTORICAL

YTD 2025

N

YTD 2024

N

CHANGE

%

2024

N

2023

N

Land

71,733,787

71,733,787

-

71,733,787

71,166,592

Buildings

350,248,226

364,910,142

(4.02)

349,314,123

156,937,733

Capital Work-in-Progress

302,879,950

485,100,628

100.00

302,879,950

705,120,915

Motor Vehicle

190,938,698

10,545,510

1,710.62

1,184,245,252

581,490,071

Plant and Machinery

1,140,855,987

997,507,113

14.37

9,412,479

13,944,604

Furniture and Fittings

8,166,721

940

868,700.06

1,546,777

1,935

Office & HSE Equipment

20,390,597

2,287,450

791.41

11,134,133

2,471,652

2,085,213,965

1,932,085,570

7.93

1,930,266,501

1,531,133,502



DOCUMENT TITLE: 2025 THIRD 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 SEPTEMBER 2025

15.2B FOR THE PERIOD ENDED 30TH SEPTEMBER 2024

15.2A FOR THE PERIOD ENDED 30TH SEPTEMBER 2025

Land

Buildings

Capital Work-

in-Progress

Motor Vehicle

Plant and Machinery

Furniture and

Fittings

Office & HSE

Equipment

Total

Deemed Cost N

N

N

N

N

N

N

N

At 1 January 2025

71,733,787

372,125,830

302,879,950

18,128,500

1,420,198,768

16,511,208

25,796,070

2,227,374,113

Addition in the period

-

6,560,000

-

187,810,000

9,153,247

387,000

11,505,000

215,415,247

At 30th September 2025

71,733,787

378,685,830

302,879,950

205,938,500

1,429,352,014

16,898,208

37,301,070

2,442,789,360

Accumulated Depreciation and impairment loss

At 1 January 2025

-

(24,561,068)

-

(8,716,021)

(231,882,722)

(6,164,297)

(14,661,939)

(285,986,048)

Charge for the period

-

(3,876,535)

-

(6,283,781)

(56,613,305)

(2,567,190)

(2,248,534)

(71,589,346)

At 30th September 2025

-

(28,437,604)

-

(14,999,802)

(288,496,027)

(8,731,488)

(16,910,474)

(357,575,394)

Carrying amount

At 30th September 2025

71,733,787

350,248,226

302,879,950

190,938,698

1,140,855,987

8,166,721

20,390,597

2,085,213,965

At 30th September 2024

71,733,787

364,910,142

827,201,346

10,545,510

655,406,396

415,940

1,872,450

1,932,085,570

Land

Buildings

Capital Work-

in-Progress

Motor Vehicle

Plant and Machinery

Furniture and

Fittings

Office & HSE

Equipment

Total

Deemed Cost N

N

N

N

N

N

N

N

At 1 January 2024

71,733,787

352,369,450

823,061,346

18,128,500

845,188,366

5,800,299

15,936,501

2,132,218,249

Addition in the period

-

33,163,120

4,140,000

-

26,281,094

415,000

-

63,999,214

At 30th September 2024

71,733,787

385,532,570

827,201,346

18,128,500

871,469,460

6,215,299

15,936,501

2,196,217,463

Accumulated Depreciation and impairment loss

At 1 January 2024

-

(19,747,748)

-

(6,449,958)

(200,953,744)

(5,799,359)

(13,770,588)

(246,721,397)

Charge for the period

-

(874,681)

-

(1,133,031)

(15,109,321)

-

(293,463)

(17,410,495)

At 30th September 2024

-

(20,622,428)

-

(7,582,990)

(216,063,064)

(5,799,359)

(14,064,051)

(264,131,892)

Carrying amount

At 30th September 2024

71,733,787

364,910,142

827,201,346

10,545,510

655,406,396

415,940

1,872,450

1,932,085,570

At 30th September 2023

69,426,593

157,812,414

309,396,912

15,306,802

579,837,587

13,686

3,160,890

1,134,954,884



NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30TH SEPTEMBER 2025

  1. Deemed cost

    On 5 November 2018, the company's property, plant and equipment were revalued by Messrs. Jide Taiwo & Co (Estate Surveyors and Valuers - FRC/2012/00000000254) on the basis of open market value of N880,800,000. The revalued amount was incorporated in these financial statements.The surplus of N221,263,007 arising therefrom was transferred to revaluation reserve account.

  2. Capital work-in-progress

These represent costs of property, plant and equipment acquired year which have not been put to use as at 30th September 2025.

ACTUAL

HISTORICAL

YTD 2025

YTD 2024

CHANGE

2024

2023

Thermal Desorption Unit (TDU) with components

N

N

152,700,734

%

(100.00)

N

-

N

148,968,234

High Pressure Pump

144,698,678

(100.00)

-

144,698,678

500KVA Soundproof Perkins Generator

15,730,000

(100.00)

-

15,730,000

Gerotto Robotic Tank Cleaning Equipment

302,879,950

302,879,950

(0.00)

302,879,950

302,879,950

Water Based Mud and Waste Water Treatment Plant

33,382,000

(100.00)

-

33,382,000

Construction of TDU Building

177,809,984

(100.00)

-

59,462,053

302,879,950

827,201,346

(63.38)

302,879,950

705,120,915

15.5 Depreciation

Cost of sales

63,103,711

34,771,734

81.48

56,562,167

38,162,233

Administrative expenses

8,959,769

17,917,900

(50.00)

10,872,692

9,098,316

72,063,480

52,689,634

36.77

67,434,859

47,260,549

15.6 Security

All the Company's property, plant and equipment were pledged as security as at 30th September 2025.

16.

Other non-current assets

Prepaid fees on Loan

1,935,000

3,870,000

(50.00)

726,867

10,167,467

Deferred costs

3,144,375

5,321,250

(40.91)

3,870,000

7,740,000

5,079,375

9,191,250

(44.74)

4,596,867

17,907,467

  1. Prepaid fees on loan

    These represent non-current portion of the fees charged by Providus Bank Plc on Bank Guarantee for loan facility of N700.0 million obtained from Bank of Industry in 2021 by The Initiates Plc. This also include legal fees paid to Bank of Industry and also fees charged by Consultants. The loan facility has a tenor of 5 years.

  2. Deferred costs

These represent non-current portion of costs on environmental evaluation study as required by the Ministry of Environment.

ACTUAL

HISTORY

YTD 2025

YTD 2024

CHANGE

2024

2023

N

N

%

N

N

17.

Inventories

Technical Store

31,464,352

12,234,966

157.17

13,812,750

550,064.00

QHSE Store

5,244,458

2,552,800

105.44

2,154,000

5,142,666

Stationeries

853,610

397,046

114.99

222,317

212,856

Toiletries

2,079,585

137,095

1,416.89

180,899

102,555

Diesel

9,239,775

1,981,000

366.42

12,782,559

7,568,779

48,881,779

17,302,907

182.51

29,152,525

13,576,920

The value of inventories recognised as an expense during the period was N26.123 million (2024: N29.518 million). No inventory was pledged as security during the year.

The Company uses First In First Out method in valuing its inventory.



NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30TH SEPTEMBER 2025

ACTUAL

HISTORY

YTD 2025

YTD 2024

CHANGE

2024

2023

N

N

%

N

N

18.

Trade and other receivables

Trade receivables

4,518,639,925

1,457,066,869

210.12

2,825,798,850

485,235,196

Staff loans and advances

3,210,730

2,880,089

11.48

474,237

4,958,914

Asset - in- Transit

257,197,321

29,143,966

782.51

Other Receivable

652,196

9,000

7,146.62

652,195.00

-

4,779,700,172

1,489,099,924

220.98

2,826,925,282

490,194,110

Asset- in-transit: Represents Screw Conveyor , 20 ft Container, and Vacuum pumps and Skips which were not received by The Initiates Plc as

18.1 Trade receivables

Receivables from customers

4,518,639,925

1,457,066,869

210.12

3,008,812,840

499,200,041

Allowance for expected credit losses

-

-

-

(183,013,990)

(13,964,845)

4,518,639,925

1,457,066,869

210.12

2,825,798,850

485,235,196

Ageing of trade receivables

Current

574,743,155

967,365,789

100.00

1,973,924,423

86,590,632

1 - 30 days past due

1,035,723,690

251,537,999

311.76

1,926,782

15,502,803

31 - 60 days past due

1,161,282,759

126,646,607

816.95

164,115,002

-

61 - 90 days past due

965,048,908

19,790,334

4,776.37

603,963,008

65,382,876

Over 90 days past due

781,841,412

91,726,140

752.36

264,883,625

331,723,730

4,518,639,925

1,457,066,869

210.12

3,008,812,840

499,200,041

18.1.1 Movement in allowance for credit losses

At 1 January

183,013,990

13,964,845

1,210.53

13,964,845

13,964,845

Debt recovery

(29,417,468)

-

100.00

-

-

Allowance for the year

-

-

-

169,049,145

-

At 30th September

153,596,522

13,964,845

999.88

183,013,990

13,964,845

18.2 Key management personnel and staff loans

Loan to key management personnel

-

565,821

(100.00)

-

2,000,000

Staff loans and advances

3,210,730

2,314,268

38.74

474,237

2,958,914

Allowance for expected credit losses

-

-

-

-

-

3,210,730

2,880,089

11.48

474,237

4,958,914

18.2b. Relationship with key management Personnel

Key management personnel include the Directors and the management staff of the Company

18.2c. Transactions

During the period, funds were not provided by the key Management Personnel of the Company.



DOCUMENT TITLE: 2025 THIRD 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 SEPTEMBER 2025

ACTUAL YTD 2025

HISTORY YTD 2024

CHANGE

2024

2023

19

TIU Investments as at 30th September

N 107,298,312

N 105,619,312

%

1.59

N

105,140,247

N 105,259,214

In February 2018, the Company entered into a joint venture agreement with a local company in Uganda with a view to tendering for waste management contracts in Total Uganda. This was followed up by the incorporation of a company (The Initiates Uganda Limited) in November 2018.

The balance is made up of the following: Pre-Incorporation expenses

6,307,001

6,307,001

-

6,307,001

6,307,001

Cost of TDU Plant

85,562,903

85,562,903

-

85,562,903

85,562,903

Funds provided as working capital

8,674,388

8,674,388

-

8,674,388

8,674,388

Other expenses

6,754,020

5,075,020

33.08

5,075,020

4,714,922

107,298,312

105,619,312

1.59

105,619,312

105,259,214

19.1

TIN Investments as at 30th September

7,159,411

-

100.00

-

-

The authorized share capital of The Initiates Uganda Limited is UGX 100,000,000 (One Hundred Million Uganda shillings) i.e.100 ordinary shares of UGX 1,000,000 (One Million Uganda shillings) each. The shareholders of the company are The Initiates Plc and Dag & Bragan Oil & Gas Services Limited with ownership structure of 60:40.

In September 2025 the Company entered into a joint venture agreement with a local company in Namibia with a view to tendering for waste management contracts in Namibia. The process of the incorporation of a company (The Initiates Namibia

Pre-Incorporation expenses 7,159,411 - 100.00 - -

  1. Cash and cash equivalents

    Cash and cash equivalents represent cash in hand and at bank as at end of period.

    Cash in hand

    328,900

    65,080

    405.38

    106,400

    185,003

    Cash at bank

    337,844,418

    103,301,181

    227.05

    43,419,694

    193,375,992

    338,173,318

    103,366,261

    227.16

    43,526,094

    193,560,995

    Short Term Investment (note 19.1)

    4,310,444

    3,819,013

    12.87

    4,054,292

    -

    6,102,460

    342,483,762

    107,185,273

    219.53

    47,580,386

    199,663,455

    20.1

    Short Term Investment

    This represents unclaimed dividends of N3.0 million in 2019 and N3.01 million in 2021 totalling N6.01 million which were invested in Apel Investment Trust. This investment (principal and interest) was rolled over in 2022 for 182 days (from 21 February - 22 August 2022) with the interest rates of 7.25% per annum, N1.29 million was liquidated out of it for dividend payment in 2022 and the balance was rolled over for 182 days from 22 August 2022 - 20 February 2023 with the interest rate of 8.25% per annum. In 2023, principal and interest were rolled over for 182 days (from 20 February - 21 August 2023), from 21 August 2023 - 19 February 2024 with the interest rates of 10.50% and 10% per annum respectively. In June 2024, N2.5 million was liquidated for dividend payment and the balance of N3.8 million was rolled over for 66 days (from 14/06/2024 - 19/08/2024) with the interest rate of 10.50% per annum, and also for 182 days (from 19/08/2024 - 17/02/2025) with the interest

  2. Current tax assets

    These represent withholding tax receivable as at year end.

    ACTUAL YTD 2025

    HISTORY

    YTD 2024 CHANGE 2024 2023

    At 1 January

    Withholding tax in the year

    Withholding tax utilised during the year At 30th September

    N N % N N

    - 72,542,118 (100.00) 57,687,440 62,910,235

    140,670,356 3,761,804 3,639.44 (30,546,742) 26,440,865

    - - 113,121,124 80,668,460

    (140,670,356) (140,261,822) (112,332,120)

    0 76,303,922 (100.00) - 57,687,440

  3. Other current assets

Prepaid insurance

Prepaid Fees on Loan - Current Prepaid fees on loan

Prepaid Medicals

Prepaid expenses

4,645,957 3,377,579 37.55 12,759,401

4,720,300 9,440,600 (50.00) 12,759,401 10,445,539

726,867 10,167,467 (92.85) 9,440,600 9,440,600

17,479,508 8,852,375 97.46 3,870,000 3,870,000

22,926,674 31,838,020 (27.99) 26,070,001 23,756,139



DOCUMENT TITLE: 2025 THIRD 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 SEPTEMBER 2025

ACTUAL YTD 2025

HISTORY YTD 2024

CHANGE

2024

2023

23. Share capital

N

N

%

N

N

Issued and fully paid: (note 23.2)

889,981,552 ordinary shares of N0.50 each

444,990,776

444,990,776

-

444,990,776

444,990,776

23.1 Paid up share capital

2,000,000,000 ordinary shares of N0.50 each

1,000,000,000

444,990,776

-

444,990,776

444,990,776

At the Annual General Meeting of company held on 25th July 2024, the Shareholders passed a resolution to:

  1. Increase the share capital of the company from N444,990,776 to N1,000,000,000.

  2. Raise additional equity capital by way of Public Offer and Rights Issue subject to the approval of Regulatory Authoriti

  3. Alter Clause 6 of the Memorandum of Association to read "That the Share Capital of the Company is N1,000,000,000 (One Billion Naira) divided into 2,000,000,000 (Two Billion) ordinary shares of 50kobo each"

24.

Share premium

At 1 January

17,780,000

17,780,000

-

17,780,000

17,780,000

At 30th September

17,780,000

17,780,000

-

17,780,000

17,780,000

  1. Revaluation Reserve

    303,473,535

    303,473,535

    -

    303,473,534

    303,473,534

    303,473,535

    303,473,535

    -

    303,473,534

    303,473,534

    On 5 November 2018, the company's property, plant and equipment were revalued by Messrs. Jide Taiwo & Co (Estate Surveyors and Valuers - FRC/2012/0000000000254) on the basis of open market value of N880,800,000. The revalued amount was incorporated in these financial statements.The surplus of N221,263,007 arising therefrom was transferred to revaluation reserve

    At 1 January

    At 30th September

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

    THE INITIATES PLC

    NOTES TO THE FINANCIAL STATEMENTS

    FOR THE PERIOD ENDED 30TH SEPTEMBER 2025

  2. Retained earnings

HISTORY

ACTUAL YTD 2025

N

YTD 2024 CHANGE 2024 2023

N % N N

At 1 January 1,707,751,603 411,981,089

314.52

411,981,089

(53,379,368)

Adjustments (note 28.1) -

-

(30,514,639

Dividends (88,998,155) (53,398,893)

100.00

(53,398,893

117,133,445

Profit for the year

1,792,563,521

477,271,255

276

1,379,684,046

348,227,012

At 30th September

3,411,316,968

835,853,450

308.12

1,707,751,603

411,981,089

27. Trade and other payables

Trade payables

975,297,377

523,093,684

86.45

848,844,753

258,800,028

Dividend payable (note 28.1)

2,314,628

4,011,477

(42.30)

4,198,824

6,706,191

Advances from customer

-

-

-

187,000

483,735

Other payables

1,054,450

139,416

100.00

1,054,450

139,416

Accruals (notde 28.2)

311,141,934

488,473,370

(36.30)

250,115,704

34,940,693

1,289,808,389

1,015,717,947

26.98

1,104,400,731

301,070,063

27.1 Dividend payable

Declared Dividends (note 29.1.1)

4,198,824

7,012,943

(40.13)

2,314,628

5,315,094

Unclaimed Dividends (29.1.2)

(1,884,196)

(3,001,466)

(37.22)

1,884,196

1,391,097

At 30th September

2,314,628

4,011,477

(42.30)

4,198,824

6,706,191

27.1.1 Declared Dividends

At 1 January

-

-

-

-

)

)

-

Dividends declared during the year

88,998,155

-

100.00

53,398,893

-

Payments made during the year

(88,998,155)

-

100.00

(53,398,893)

-

At 30th September

0.20

100

-

-

At the 26th Annual General Meeting held on 25th April 2025, the Shareholders approved dividend of 10 kobo per ordinary share payable out of the profit for the year ended 31 December 2024.

27.1.2 Unclaimed Dividends

At 1 January

5,315,094

5,315,094

Unclaimed dividends in the year

-

-

Payments made during the year

(3,000,466)

-

At 30th September

2,314,628

5,315,094

27.1.3 Interest on Unclaimed Dividend

At 1 January

1,391,097

876,315

Interest on unclaimed dividends

493,099

514,782

Payments made during the year

-

-

At 30th September

1,884,196

1,391,097

27.2 Accruals

Accrued Audit Fees

3,750,000

2,625,000

42.86

4,000,000

3,500,000

Accrued Directors' Fees

3,900,000

1,125,000

246.67

5,200,000

-

Accrued Interest on Loan

10,471,386

3,287,500

218.52

10,030,320

11,287,671

Accrued Professional Fees

2,500,000

22,473,009

100.00

2,000,000

1,500,000

Accrued Staff Terminal Benefit

1,595,567

1,674,428

(4.71)

20,000,000

-

Accrued Security and Community Expenses

2,955,590

1,787,855

65.31

1,755,590

1,555,590

Accrued Industrial Training Fund

2,460,070

125,800

1,855.54

2,525,895

-

Accrued Waste Disposal

95,051,375

-

100.00

5,309,275

13,100,275

Accrued Waste Treatment

184,909,250

9,914

1,864,985.61

196,600,000

-

Accrued Contract Staff Wages

1,600,000

2,000,000

(20.00)

2,400,000

1,200,000

Accrued Staff Welfare

-

1,455,590

(100.00)

-

2,500,000

Accrued Interest on Unclaimed Dividend

1,948,696

451,909,275

(99.57)

294,624

297,157

311,141,934

488,473,370

(36.30)

250,115,704

34,940,693

28. Other current tax liabilities

Pay As You Earn

2,712,222

2,501,775

8.41

936,071

781,426

Withholding tax payable

69,879,800

46,776,640

49.39

58,062,224

31,036,290

Value Added Tax - Suppliers

81,643,003

57,477,059

42.04

73,034,955

40,576,911

Value Added Tax - Customers

338,492,473

113,559,503

198.07

221,882,345

46,452,307

At 30th September

492,727,498

220,314,977

123.65

353,915,595

118,846,934



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

THE INITIATES PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30TH SEPTEMBER 2025

ACTUAL

HISTORY

YTD 2025

YTD 2024

CHANGE

2024

2023

29. Employees' benefits

N

N

%

N

N

Defined contribution plans (note 27.1)

3,766,223

4,772,224

(21.08)

5,726,408

2,995,027

29.1 Defined contribution plans

350,000,000

500,000,000

(30.00) 550,000,000

-

(150,000,000) (100,000,000)

200,000,000 400,000,000

- 700,000,000

- - -

100.00 (200,000,000) (200,000,000)

- 350,000,000 500,000,000

178,805,728

-182,950,820

(361,756,548)

269,817,900

(33.73)

-(54.23)

(25.68)

134,908,950

-

399,750,000

(486,735,317)

602,464,418

(558,567,640)

134,908,950

-

(0) 182,832,583 (100.00) 178,805,728 134,908,950

These represent pension contribution. It is computed as follows: 8% of the employee's basic salary, housing and transport is contributed monthly by the employee and 10% of the employee's basic salary, housing and transport is contributed by the employer. The monthly contribution is remitted to the Pension Fund Administrators in accordance with the Nigerian Pension

At 1 January

5,726,408

2,995,027

91.20

2,995,027

2,937,537

Provision for the year

14,359,815

11,131,289

29.00

16,857,021

13,082,609

Payments made during the period

(16,320,000)

(9,354,092)

74.47

(14,125,640)

(13,025,119)

At 30th September

3,766,223

4,772,224

(21.08)

5,726,408

2,995,027

30

Borrowings

200,000,000

400,000,000

-

350,000,000

550,000,000

  1. Loan facility from Bank of Industry

    At 1 January

    Loan obtained in the year Repayments in the year

  2. Short Term Borrowings

These represent Invoice Discounting Facility

IDF from Providus Bank asat 1st Jan 2025 Wema Bank Plc (note 32.2.2)

IDF from Providus Bank within the year Repayments in the year

At 30th September

30.3 Borrowings

These represent loan facility of N700.0 million obtained by The Initiates Plc from Bank of Industry in 2021 for procurement of plant and machinery for the treatment and disposal of oil drilling waste as well as industrial cleaning and decontamination services. The loan has a tenor of 5 years with one (1) year moratorium and interest rate of 8% per annum commencing from the date of first disbursement. The loan was secured with a Bank Guarantee from Providus Bank Plc. The security for the guarantee is as follows:

'- Mortgage Debenture on the Company's assets situated at Plot 400 Location Road, Umuebule 5, Aba/PH Expressway, Port Harcourt, Rivers State, to be valued by a Bank accredited valuer.

  • Legal Mortgage on a property in acceptable location in Lagos or Abuja.

  • Irrevocable domiciliation of contract proceeds to Providus Bank.

  • Deposit of a minimum of 25% of the facility amount in a DSRA account to be utilized to service both the principal and accrued interest on the facility for the 1st year. This must be replenished on a regular basis from the Company's operational cash flow.

  • Personal Guarantee of the Managing Director and another director suppported by notarized Statements of Networth.



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

THE INITIATES PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30TH SEPTEMBER 2025

-

9

13

28

50

-

-

Number

Number

The number of employees in Nigeria with gross

emoluments within the bands stated were: N100,000

N500,001 N1,000,001 N1,500,001

Salaries and allowances 78,414,315 27,154,635 181,673,317 69,452,947 257,772,599 153,753,702

N

N

N

N

Aggregate payroll costs

10

12

33

55

-

-

6

52

58

10

19

20

49

6

54

49

-

10

19

20

49

-

-

6

49

55

4

26

20

50

2023

N

2024

N

ACTUAL HISTORY ACTUAL HISTORY

Q3 2025 Q3 2024 YTD 2025 YTD 2024

N N N N

  1. Information regarding directors and employees

    1. Directors

Directors' emoluments comprises: Fees

Others - salaries and allowances

Number

Nil

1,125,000

6,340,000

-

38,472,800

-

19,360,000

5,200,000

39,501,931

2,750,000

33,835,386

13,020,000 7,465,000 38,472,800 19,360,000 44,701,931 36,585,386

Highest paid Director (Managing Director) - emolument

13,020,000

7,465,000 38,472,800

19,360,000

44,701,931

36,585,386

Other directors with emoluments

Number

Nil

Number

Nil

-

13,020,000

Number

Nil

Number

Nil

Number

Nil

The number of directors with gross emoluments within the band stated were:

Number

Below N3,000,000 -

N3,000,001 - N7,000,000 -

N7,000,001 and above 1

1

Number

-

-1

1

Number

-

-1

1

Number

-

-1

1

Number

-

-1

1

Number

-

-1

1

31.2 Employees

Average numbers of persons employed during the period: Management

Senior Staff Junior Staff

Number

15

18

25

58

10

11

28

49

15

18

27

60

10

11

28

49





DOCUMENT TITLE: 2025 THIRD 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 SEPTEMBER 2025

  1. Guarantees and other financial commitments

    The company did not guarantee any loan to the directors and officers of the company during the year.

  2. Financial commitments

    The Directors are of the opinion that all known liabilities and commitments which are relevant in assessing the company's financial statements have been taken into account in the preparation of the financial statements under review.

  3. Contingent liabilities

    There were no contingent liabilities arising from litigations in the ordinary course of business.

  4. Capital commitments

    There were no capital commitments at 30th September 2025

  5. Events after the reporting date COVID-19

    The Directors are of the view that the going concern or the continuing existence of the Company is not in doubt, as a result of the impact of COVID-19 on their future operations.

  6. Earnings per Share

Earnings per share are based on profit after tax and number of fully paid ordinary shares.

ACTUAL HISTORY ACTUAL HISTORY Q3 2025 Q3 2024 YTD 2025 YTD 2024

N N %

Profit attributable to ordinary shareholders (in naira) 855,154,420 305,081,778 1,792,563,521 477,271,255 Number of ordinary shares issued and fully paid for basic earnings per share (in 889,981,552 889,981,552 889,981,554 889,981,555 Basic earnings per 50 kobo share 0.96 0.34 2.01 0.54

27 | P a g e

2024

2023

N

N

1,379,684,047

(329,712,418)

889,981,556

889,981,557

1.55

(0.37)



DOCUMENT TITLE: 2025 THIRD 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 SEPTEMBER 2025

39. Professional firms

The following firms provided professional services to the Company and their FRC registration numbers are stated as follows:

Audit Firm

The audit firm is Madu,Onyekwena & Co. The firm is responsible for the audit of the Company's records and provision of tax consultancy services. The FRC number is FRC/2013/ICAN/00000004886.

Estate Surveyors and Valuers

Jide Taiwo & Co. is the firm that values the Company's assets. The FRC registration number is FRC/2012/00000000254.

Company Secretary

Mrs. Olaide Odejobi is the Company's Secretary. She is responsible for filing accounts with Corporate Affairs Commission, Securities and Exchange Commission together with other secretarial functions. The FRC registration number is

Registrars

Apel Capital Registrars Limited is the Company's Registrars. They are responsible for keeping the records of shareholders and paying dividends. The FRC registration number is FRC/2017/ICAN/00000014821.

28 | P a g e



DOCUMENT TITLE: 2025 THIRD QUARTER MANAGEMENT ACCOUNT

DOCUMENT NO.: TIP-FIN-MNG -0026

REV NO.: 00

THE INITIATES PLC

OTHER NATIONAL DISCLOSURES

29 | P a g e

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