LEGEND INTERNET PLC
UNAUDITED MANAGEMENT REPORT FOR THE PERIOD ENDED 31, OCTOBER 2025
LEGEND INTERNET PLC
Management financial statements For the period ended 31 October 2025
Table of ContentsCorporate information i
Results at a glance ii
Statement of financial position 1
Statement of profit or loss and other comprehensive income 2
Statement of Changes in Equity 3
Statement of cashflow 4
Notes to the accounts 5-16
Statement of value added 17
LEGEND INTERNET PLC
Management financial statements For the period ended 31 October 2025
CORPORATE INFORMATION RC NUMBER: 1829214 DIRECTORS AND PROFESSIONAL ADVISERSDIRECTORS |
| Non-Executive Director Non-Executive Director |
3. Ms. Aisha Abdulaziz | Executive Director/CEO | |
4. Mr. Ehianeta Mondritz Ebhohimhen | Non-Executive Director | |
5. Mr. Ayodele Olubunmi Arogbo | Non-Executive Director | |
6. Dr. Oladimeji Mobolaji Bada | Chairman/Independent Director | |
7. Mr. Mohammed Yamani Shema | Independent Director | |
| Independent Director Independent Director | |
REGISTERED OFFICE | 15, Bangui Street, Off Adetokunbo Ademola Crescent, Wuse II, Abuja, FCT, Nigeria. | |
BUSINESS OFFICE | 15, Bangui Street, Off Adetokunbo Ademola Crescent, Wuse II, Abuja, FCT, Nigeria. | |
BANKERS | Taj Bank SunTrust Bank FCMB FCMB |
RESULTS AT A GLANCE | ||
31-Oct-2025 ₦'000 | 31-Oct-2024 ₦'000 | |
Revenue | 258,270 | 309,744 |
Earnings after tax and interest | (14,775) | 94,519 |
Retained earnings | 566,008 | 660,367 |
Share capital | 1,000,000 | 1,000,000 |
Shareholders' funds | 2,704,569 | 2,798,927 |
Per share data | ||
Basic earnings/(loss) per share (in kobos) | (7) | 5 |
STATEMENT OF FINANCIAL POSITION | ||||
Notes | 31-Oct-2025 | 31-Jul-2025 | ||
ASSETS | ₦'000 | ₦'000 | ||
Non-current assets Property, plant and equipment | 5 | 2,473,471 | 2,595,924 | |
Rights-of-use | 5.4 | - | - | |
Intangible asset | 5.5 | 16,424 | 17,073 | |
Total non-current assets | 2,489,895 | 2,612,998 | ||
Current assets Inventory | 7 | 30,519 | 74,378 | |
Receivables from clients | 8.1 | 166,472 | 173,193 | |
Other Receivables | 8.2 | 329,228 | 329,228 | |
Cash and cash equivalents | 9 | 11,523 | 21,024 | |
Deferred Tax Asset | 59,511 | |||
Total current assets | 597,253 | 597,823 | ||
Total assets | 3,087,148 | 3,210,821 | ||
EQUITY AND LIABILITIES Capital and reserves Share capital | 10 | 1,000,000 | 1,000,000 | |
Deposit for shares | 1,138,561 | 1,138,561 | ||
Retained earnings | 11 | 566,008 | 700,783 | |
Total equity | 2,704,569 | 2,839,344 | ||
Current liabilities Trade payables | 12 | 18,952 | 18,952 | |
Other payables | 13 | 194,255 | 173,791 | |
Loan | 14 | 49,373 | 75,233 | |
Dividend Liability | 120,000 | - | ||
Provisions for tax/Current Tax | 15 | 51,139 | ||
Total current liabilities | 382,580 | 319,114 | ||
Non-Current liabilities | ||||
Deferred tax liabilities | 17 | 52,362 | ||
Total Non-current liabilities | - | 52,362 | ||
Total liabilities | 382,580 | 371,476 | ||
Total equity and liabilities | 3,087,148 | 3,210,821 |
Bada Oladimeji Mobolaji
Chairman of the Board of Directors
Aisha Abdulaziz
Chief Executive Officer
FRC/2014/PRO/DIR/003/00000006009 FRC/2025/PRO/DIR/003/111246
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEUnaudited | Audited | |||
Notes | 31-Oct-2025 | 31-Oct-2024 | ||
₦'000 | ₦'000 | |||
Revenue | 11 | 258,270 | 309,744 | |
Cost of sales | 12 | (110,369) | (108,587) | |
Gross profit | 147,901 | 201,157 | ||
Administrative expenses | 13 | (168,782) | (105,791) | |
Operating profit before tax & interest | (20,881) | 95,366 | ||
Interest income Finance cost | -(847) | (847) | ||
Operating profit before tax but after | ||||
interest | (21,728) | 94,519 | ||
Provision for Income tax (expense)/credit | 10.1 | 6,953 | - | |
Profit/(loss) for the period | (14,775) | 94,519 | ||
Other comprehensive income | ||||
Actuarial gains/losses on defined benefit | ||||
scheme | - | - | ||
Available for sale financial asset surplus/deficit | - | - | ||
- | - | |||
Profit/(Loss) for the period & other | ||||
comprehensive income | (14,775) | 94,519 |
Issued share capital | Deposit for shares | Retained Earnings | Total Equity | |
₦'000 | ₦'000 | ₦'000 | ₦'000 | |
At August 1 2023 | 10,000 | 2,128,561 | 442,440 | 2,581,001 |
Profit/(loss) for the year | - | - | 115,886 | 115,886 |
Issue of share capital | 990,000 | (990,000) | - | - |
At 31 July 2024 | 1,000,000 | 1,138,561 | 558,326 | 2,696,887 |
Profit/(loss) for the year | - | - | 142,457 | 142,457 |
At 31 July 2025 | 1,000,000 | 1,138,561 | 700,783 | 2,839,344 |
At August 1 2025 | 1,000,000 | 1,138,561 | 700,783 | 2,839,344 |
Dividend Liability | (120,000) | (120,000) | ||
Profit/(loss) for the period | (14,775) | (14,775) | ||
At 31 October 2025 | 1,000,000 | 1,138,561 | 566,008 | 2,704,569 |
STATEMENT OF CASHFLOW | Unaudited | Audited | ||
Notes | 31-Oct-2025 | 31-Jul-2025 | ||
₦'000 | ₦'000 | |||
CASHFLOW FROM OPERATING ACTIVITIES | ||||
Profit/(loss) before tax & interest | (21,728) | 138,398 | ||
Adjustment to reconcile net income to net | ||||
cash provided by operating activities: Amortisation of intangible asset | 650 | 2,305 | ||
Depreciation of rights-of-use | - | 331 | ||
Depreciation of property, plant & equipment | 49,069 | 152,016 | ||
Finance cost | 843 | 29,443 | ||
Interest income | - | - | ||
Tax Credit | (6,953) | (118,829) | ||
Changes in assets and liabilities Inventories | 43,860 | (56,379) | ||
Receivables from clients | 4,705 | 89,596 | ||
Receivables from resellers | 4,064 | (329,211) | ||
Trade payables | (2,202) | 10,026 | ||
Other payables | (20,464) | 100,731 | ||
Total adjustments | 73,572 | (119,971) | ||
Net cash (used in)/from operating activities | 51,844 | 18,427 | ||
CASHFLOW FROM INVESTING ACTIVITIES | ||||
Purchases of property, plant & equipment Interest income | 1 | (35,485) - | (29,029) - | |
Net cash (used in)/from investing activities | (35,485) | (29,029) | ||
CASHFLOW FROM FINANCING ACTIVITIES Loan | 9,186 | |||
Loan Repayment | (25,860) | (29,443) | ||
Net cash (used in)/from financing activities | (25,860) | (20,257) | ||
Net change in cash and cash equivalents | (9,501) | (30,861) | ||
Cash and cash equivalents at the beginning of the period | (28,349) | 2,512 | ||
(37,850) | (28,349) | |||
REPRESENTED BY | ||||
Cash & cash equivalent: Cash and bank balances | 4 | 11,523 | 21,024 | |
Bank Overdraft | (49,373) | (49,373) | ||
(37,850) | (28,349) | |||
NOTES TO THE MANAGEMENT FINANCIAL STATEMENT
5 | PROPERTY, PLANT AND | EQUIPMENT | |||||
As at 31 July 2025 | |||||||
Fibre | Wi-Fi | Plant & | Furniture & | Computer | |||
Infrastructure | Infrastructure | Machinery | Fittings | Equipment | Total | ||
Cost | ₦'000 | ₦'000 | ₦'000 | ₦'000 | ₦'000 | ₦'000 | |
At 1 August 2024 | 3,023,569 | 136,325 | - | - | 12,454 | 3,172,349 | |
Additions | 21,113 | - | 2,852 | 50 | 1,098 | 25,113 | |
At 31 July 2025 | 3,044,682 | 136,325 | 2,852 | 50 | 13,552 | 3,197,461 | |
At 1 August 2025 | 3,044,682 | 136,325 | 2,852 | 50 | 13,552 | 3,197,461 | |
Additions | 35,485 | ||||||
At 31 October 2025 | 3,080,167 | 136,325 | 2,852 | 50 | 13,552 | 3,232,946 | |
Depreciation At 1 August 2025 | 560,493 | 32,718 | 464 | 1 | 7,861 | 601,537 | |
Depreciation charge for | |||||||
the period | 46,203 | 2,045 | 143 | - | 678 | 49,069 | |
At 31 October 2025 | 606,696 | 34,763 | 607 | 1 | 8,539 | 650,606 | |
Carrying amount At 31 October 2025 | 2,473,471 | 101,562 | 2,245 | 49 | 5,013 | 2,582,340 | |
At 31 July 2025 | 2,484,189 | 103,607 | 2,388 | 49 | 5,691 | 2,595,924 | |
Impairment losses recognised in the year
There were no impairment losses recognized during the period.
Contractual commitments
At 31 October 2025, the Company had no contractual commitments for the acquisition of property, plant and equipment.
Assets pledged as security
The Company does not have any asset pledged as security for liabilities.
RIGHTS OF USE ASSET
At 31 October 2025 -
Right-of-use assets relates to leased property that do not meet the definition of investment property are presented as property, plant and equipment (see Note 1.4).
The Company currently has one leased at Guzape, Abuja. The lease runs for a period of 4 years, with options to extend the period.
NOTES TO THE MANAGEMENT FINANCIAL STATEMENTS
Unaudited | Audited | ||
5.5 INTANGIBLE ASSET (BILLING SYSTEM) | 31-Oct-2025 | 31-Jul-2025 | |
Cost | ₦'000 | ₦'000 | |
At 1 August | 26,005 | 22,088 | |
Additions | - | 3,917 | |
At 31 October 2025 | 26,005 | 26,005 | |
Depreciation | |||
At 1 August | 8,931 | 6,626 | |
Amortisation charge for the period | 650 | 2,305 | |
At 31 October 2025 | 9,581 | 8,931 | |
Carrying amount | |||
At 31 October 2025 | 16,424 | 17,073 | |
At 31 July 2025 | 17,073 | 17,073 | |
Unaudited | Audited | ||
7 INVENTORIES | 31-Oct-2025 | 31-Jul-2025 | |
Inventory items | ₦'000 30,519 | ₦'000 74,379 | |
Unaudited | Audited | ||
8 TRADE AND OTHER RECEIVABLES | |||
31-Oct-2025 | 31-Jul-2025 | ||
8.1 Trade receivables | ₦'000 | ₦'000 | |
Receivables from clients | - | 4,705 | |
Receivables from resellers | 166,472 | 170,536 | |
166,472 | 175,241 | ||
Less: Expected credit loss allowance on trade receivables | - | (2,048) | |
Net trade receivables | 166,472 | 173,193 | |
Unaudited | Audited | ||
8.2 Other receivables | |||
31-Oct-2025 | 31-Jul-2025 | ||
₦'000 | ₦'000 | ||
Advance payment to vendor | 329,228 | 329,211 | |
Withholding tax credit notes | - | 16 | |
329,228 | 329,228 |
Management financial statements For the year ended 31 October 2025
NOTES TO THE MANAGEMENT FINANCIAL STATEMENTS
8.3 Expected credit loss allowance on trade and other receivables
31-Oct-2025 31-Jul-2025
₦'000 ₦'000
Balance as at 1-August - 3,581
Provision for impairment charge for the year 2,048
Impairment charge no longer required - (3,581)
Balance as at end of period - 2,048
Age analysis of receivables
Not Past due
31-Oct-2025 31-Jul-2025
₦'000 ₦'000
1-30 days - 175,241
31-60 days - -
61-90 days - -
91 days and above - -
9 | CASH AND CASH EQUIVALENTS (EXCLUDING BANK OVERDRAFT) | Unaudited | Audited |
Cash at hand | ₦'000 - | ₦'000 12 | |
Taj Bank 0001685496 | 6,875 | 5,983 | |
SunTrust 0002606166 | 1,485 | 1,485 | |
Fcmb | 450 | 224 | |
Access | 3 | 105 | |
Parallex | 3 | 3 | |
Flutterwave/Legend Pay | 2,707 | 13,212 | |
Balance for statement of cash flow purposes at 31 October | 11,523 | 21,024 |
For the purposes of statement of cashflow, cash and cash equivalent comprise cash in hand, deposit held at call with banks, net of bank overdraft. In the statement of financial position, bank overdraft are included in borrowings under current liabilities. The year end cash and cash equivalent comprise the following:
Unaudited | Audited | ||
Cash at bank and in hand | ₦'000 11,523 | ₦'000 21,024 | |
Bank overdraft (note 7.1) | (49,373) | (49,373) | |
Balance for statement of cash flow purposes | (37,850) | (28,349) |
Management financial statement For the period ended 31 October 2025
NOTES TO THE MANAGEMENT FINANCIAL STATEMENTS 10 SHARE CAPITAL Unaudited 31-Oct-2025Audited
31-Jul-2025 ₦'000 ₦'0002,000,000,000 ordinary shares of ₦0.50 | 1,000,000 | 1,000,000 | |
11 RETAINED EARNINGS | Unaudited | Audited | |
107/31/2025 | 31-Jul-2025 | ||
₦'000 | ₦'000 | ||
Balance brought forward | 700,783 | 558,326 | |
Dividend Liability | (120,000) | ||
Result for the period | (14,775) | 142,457 | |
566,008 | 700,783 | ||
12 TRADE PAYABLES | Unaudited | Audited | |
10-/31/2025 | 31-Jul-2025 | ||
₦'000 | ₦'000 | ||
Trade payables | 16,750 | 18,952 | |
Less: provision for impairment of trade payables | - | - | |
Net trade payables | 16,750 | 18,952 | |
13 OTHER PAYABLES | Unaudited 31-Oct-2025 | Audited 31-Jul-2025 | |
₦'000 | ₦'000 | ||
Accrued PAYE | 36,658 | 26,695 | |
Staff pension - Employee | 23,540 | 18,008 | |
Staff pension - Employer | 27,124 | 20,209 | |
Industrial Training Fund | 4,949 | 4,257 | |
Nigeria Social Insurance Trust Fund | 231 | 4,257 | |
National Housing Fund | 1,729 | 3,752 | |
Audit Fees | 3,375 | 5,375 | |
Professional services | 8,600 | 4,300 | |
Consultancy for customer care | 6,811 | 6,811 | |
Unpaid installation cost | 4,146 | 4,146 | |
Customer deposit | 1,468 | 1,468 | |
Other accrued expenses | 75,624 | 74,513 | |
194,255 | 173,791 | ||
Trdae & other payables is analysed below | |||
Current | 16,750 | 18,952 | |
Non-current | - | - | |
16,750 | 18,952 | ||
14 BORROWING | Unaudited 31-Oct-2025 | Audited 31-Jul-2025 | |
₦'000 | ₦'000 | ||
14.1 Interest bearing loan (less than 12 months) | |||
Bank overdraft | 49,373 | 49,373 | |
Bank loan | - | 25,860 | |
49,373 | 75,233 |
For the year ended 31 October 2025
NOTES TO THE MANAGEMENT FINANCIAL STATEMENTS15 | INCOME TAX PAYABLE | Unaudited | Audited | |
31-Oct-2025 | 31-Jul-2025 | |||
Balance at 1 August | ₦'000 - | ₦'000 127,930 | ||
Charge for the year | - | 42,038 | ||
Payment for the year | - | (118,829) | ||
Balance at 31 July | - | 51,139 | ||
15.1 | INCOME TAX EXPENSE | Unaudited | Audited | |
31-Oct-2025 | 31-Jul-2025 | |||
₦'000 | ₦'000 | |||
Current tax | ||||
Income tax calculated at 30% | - | 31,001 | ||
Education tax calculated at 3% | - | 9,300 | ||
NASENI | - | 346 | ||
Police levy | - | 7 | ||
NITDA | - | 1,384 | ||
Net Current Tax Charge | - | 42,038 | ||
Deferred tax | ||||
Charge for the year | 16,112 | |||
Adjustments recognized in the current period in relation to the | ||||
deferred tax of prior periods | - | (62,210) | ||
Income tax (credit)/expense charged to income statement | - | (4,059) | ||
Charge for the year in OCI | - | - | ||
Total income tax (credit)/expense recognised in current | ||||
year | - | (4,059) | ||
20 | REVENUE | Unaudited | Audited | |
31-Oct-2025 | 31-Oct-2024 | |||
₦'000 | ₦'000 | |||
Legend fiber | 224,285 | 292,605 | ||
Legend WiFi | 2,537 | 3,911 | ||
Legend pay | 337 | 955 | ||
Wholesale Bandwidth | 12,578 | - | ||
CPE sales | 18,533 | 12,272 | ||
258,270 | 309,744 | |||
21 | COST OF SALES | Unaudited | Audited | |
31-Oct-2025 | 31-Oct-2024 | |||
₦'000 | ₦'000 | |||
Customer Last Mile Installation | 2,949 | 2,901 | ||
Infraco (Abuja) | 58,075 | 100,000 | ||
Bandwidth cost | 41,925 | - | ||
Legend pay | 47 | 840 | ||
CPE | 6,740 | 3,850 | ||
Installation cost | 547 | 57 | ||
Legend home | 85 | 940 | ||
110,369 | 108,588 |
For the period ended 31 October 2025
NOTES TO THE MANAGEMENT FINANCIAL STATEMENTS22 | ADMINISTRATIVE EXPENSES | Notes | Unaudited 31-Oct-2025 ₦'000 | Audited 31-Oct-2024 ₦'000 | |
Director remuneration | - | ||||
Personnel cost | 14 | 74,356 | 32,341 | ||
Repairs and maintenance | 1,622 | 2,609 | |||
Transport & travelling | 14,654 | 3,380 | |||
Printing & stationeries | 26 | 164 | |||
Electricity | |||||
Board expenses Office expenses | 10,970 | ||||
Fueling | |||||
Entertainment | 963 | 99 | |||
Legal fee | 3,000 | ||||
Bank charges | 139 | 380 | |||
Marketing expenses | 5,449 | 228 | |||
Email marketing | |||||
Licence and renewal | 78 | 79 | |||
Toll number | |||||
Delivery | |||||
Insurance | |||||
Audit fees Professional accounting fees | 10,000 | 9,193 | |||
Other professional services | 5,577 | 6,514 | |||
Telephone | 835 | ||||
Consultancy | 42 | ||||
Statutory fees | |||||
Rent | 2,838 | 500 | |||
Insurance | |||||
Training | 20 | ||||
Industrial Training Fund | |||||
Nigeria Social Insurance Trust Fund | |||||
Janitorial services | 300 | 300 | |||
Amortisation of intangible asset | 1.5 | 650 | 576 | ||
Depreciation of rights-of-use | 1.4 | ||||
Depreciation of property, plant & equipmen | 15 | 49,069 | 37,623 | ||
168,782 | 105,791 | ||||
23 | PERSONNEL COST | ||
31-Oct-2025 | 31-Jul-2025 | ||
₦'000 | ₦'000 | ||
Staff salaries | 51,945 | 170,486 | |
Staff PAYE | 9,963 | 20,354 | |
Staff pension | 12,448 | 27,015 | |
Staff Welfare | 51 | ||
74,356 | 220,302 | ||
For the year ended 31 October 2025
-
Employee information
Employees of the company, other than Directors, whose duties were wholly or mainly discharged in Nigeria, received remuneration (excluding pension costs and certain benefits) in the following ranges:
NOTES
TO THE MANAGEMENT FINANCIAL STATEMENTS
31-Oct-2025
31-Oct-2024
Number
Number
₦100,001 - ₦500,000
5
5
₦500,001 - ₦1,000,000
7
7
₦1,000,001 - ₦2,000,000
19
19
₦2,000,001 - ₦3,000,000
9
9
₦3,000,001 and above
15
15
24
DEPRECIATION EXPENSES
31-Oct-2025
31-Oct-2024
₦'000
₦'000
Fibre infrastructure
140,783
143,366
Wi-Fi infrastructure
8,180
8,180
Computer equipment
2,588
2,491
Furniture & fittings
1
-
Plant & machinery
464
-
152,016
154,036
26
PROFIT BEFORE TAXATION
31-Jul-2025
31-Jul-2025
This is stated after charging/(crediting):
₦'000
₦'000
Directors' remuneration
10,500
26,302
Audit Fees
-
5,375
Depreciation and amortization
49,069
154,321
27
RELATED PARTY DISCLOSURES
(i)
Key management personnel compensation
Remuneration(excluding pension contributions) for
Executive
Executive
Directors of the Company charged to the profit or
Directors
Directors
loss are as follows:
₦'000
₦'000
Short- term benefits:
Salary
10,500
26,302
10,500
26,302
- Key management personnel and directors transactions
Directors of the company control significant percent of the voting shares of the company There are no significant transactions with key management personnel and directors
27 | RELATED PARTY DISCLOSURES (Cont'd) | ||
Numbers and cadre of key management | |||
(iii) | personnel | 31-Oct-2025 | 31-Oct-2025 |
Number | Number | ||
Director | 1 | 1 | |
Managing Director (MD) | 1 | 1 | |
Senior Manager (SM) | 3 | 3 | |
Manager (M) | 5 | 5 | |
(iv) | Salary Range | 31-Oct-2025 | 31-Oct-2024 |
Number | Number | ||
₦8,000,001 and above | 9 | 1 | |
-
EARNINGS PER SHARE
-
Basic
Basic earnings per share is calculated by dividing the net profit attributable to equity holders
of the Company by the weighted average number of ordinary shares in issue during the year, excluding the average number of ordinary shares purchased by the Company and held as treasury shares.
31-Oct-2025
31-Oct-2024
₦'000
₦'000
Earnings after tax and interest
(34,921)
94,519
Weighted average numbers of ordinary shares at year end (thousands)
2,000,000 2,000,000
Basic earnings per share (Kobo) (2) 5
- Diluted
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.
Diluted earning per share is same as basic earnings per share
-
Basic
-
FINANCIAL INSTRUMENTS
-
Capital risk management
The Company manages its capital to ensure that the Company will be able to continue as a going concern.
The capital structure of the company consists of equity attributable to equity holders of the company, comprising issued capital and retained earnings.
The Company is not subject to any externally imposed capital requirements.
Equity includes all capital and reserves of the company that are managed as capital.
- Critical judgements and significant estimates
-
Capital risk management
Details of the significant accounting policies and methods adopted (including the criteria for recognition, the basis of measurement and the bases for recognition of income and expenses) for each class of financial asset, financial liability and equity instrument are disclosed in note 3.
30.3 | Categories of financial instruments | Unaudited | Audited | |
Financial assets | ||||
31-Oct-2025 | 31-Jul-2025 | |||
₦'000 | ₦'000 | |||
Cash and bank balance | 11,523 | 21,024 | ||
Receivables | ||||
Trade receivables | 166,472 | 173,193 | ||
Other receivables | 329,228 | 329,228 | ||
495,700 | 502,420 | |||
Financial liabilities Financial liabilities at amortized cost Trade payables | 18,952 | 18,952 | ||
Other payables | 119,675 | 173,791 | ||
Loans | 49,373 | 75,233 | ||
188,000 | 267,975 |
-
Financial risk management objectives
A financial risk management framework is in place, where appropriate, to mitigate any negative impact that financial risks that may arise will have on the Company's reported results.
The Company's senior management oversees the management of risks to ensure that financial risks are identified, measured and managed in accordance with Company's policies for risk.
Risk management policies and systems are reviewed regularly to reflect the changes in market conditions and the company's activities. The Board of Directors reviews and agrees policies for managing each of these risks which are summarised below.
The company does not trade in financial instruments, nor does it take on speculative or open positions through the use of derivatives.
-
Foreign currency risk management
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters. The Company's exposure to the risk of changes in foreign exchange rates is hedged and minimised proactive application for forex.
-
Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the company. The company's credit risk exposure is limited to the credit sales availed to few customers with great records of payment on time and without defaulting and loans availed to its members of staff. Both credit sales and staff loans are subject to management approval and are continuously monitored.
The carrying amount of financial assets represents the company's maximum exposure to credit risk, which at the reporting date, was as follows:
31-Oct-2025 31-Jul-2025 ₦'000 ₦'000Receivables 495,700 502,420
-
Collateral held as security and other credit enhancements
The carrying amount of financial assets recorded in the Management financial statements represents the company's maximum exposure to credit risk as no collateral or other credit enhancements are held. The asset comprise of loans to staff members and due repayment is deducted from staff salary at source.
- Liquidity risk management
Liquidity risk is the risk that the company is unable to meet its current and future cash flow obligations as and when they fall due, or can only do so at excessive cost. This includes the risk that the company is unable to meet settlement obligations to the acquiring banks due to failure of an issuing bank to pay.
Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the company's short-, medium- and long-term funding and liquidity management requirements. The company manages liquidity risk by maintaining adequate reserves, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
