LEGEND INTERNET PLC
UNAUDITED MANAGEMENT REPORT FOR THE PERIOD ENDED 31, JANUARY 2026
Management financial statements For the period ended 31 January 2026
Corporate information i
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
Management financial statements For the period ended 31 January 2026
CORPORATE INFORMATION RC NUMBER: 1829214 DIRECTORS AND PROFESSIONAL ADVISERS DIRECTORS 1. Mr. Bruce Brai Ayonote Non-Executive DirectorMr. Suleiman Muhammad Arzika Non-Executive Director
Ms. Aisha Abdulaziz Executive Director/CEO
Mr. Ehianeta Mondritz Ebhohimhen Non-Executive Director
Mr. Ayodele Olubunmi Arogbo Non-Executive Director
Dr. Oladimeji Mobolaji Bada Chairman/Independent Director
Mr. Mohammed Yamani Shema Independent Director
Ms. Ifeyinwa Umunnakwe-Okeke Independent Director
Ms. Lydia Abayomi Independent Director
Off Adetokunbo Ademola Crescent, Wuse II,
Abuja, FCT, Nigeria.
BUSINESS OFFICE 15, Bangui Street,Off Adetokunbo Ademola Crescent, Wuse II,
Abuja, FCT, Nigeria.
BANKERSTaj Bank FCMB
Providus Bank Access Bank Tatum Bank
LEGEND INTERNET PLC
Management financial statements For the period ended 31 January 2026
RESULTS AT A GLANCE | ||
31-Jan-2026 ₦'000 | 31-Jan-2025 ₦'000 | |
Revenue | 505,360 | 622,637 |
Earnings after tax and interest | (99,338) | 239,853 |
Retained earnings | 410,745 | 660,367 |
Share capital | 1,000,000 | 1,000,000 |
Shareholdersʼ funds | 2,549,306 | 2,798,927 |
Per share data | ||
Basic earnings/(loss) per share (in kobos) | (11) | 12 |
LEGEND INTERNET PLC
Management financial statements For the period ended 31 January 2026
STATEMENT OF FINANCIAL POSITION
ASSETS | Notes | 31-Jan-2026 ₦'000 | 31-Jul-2025 ₦'000 |
Non-current assets Property, plant and equipment | 5 | 2,448,056 | 2,595,924 |
Rights-of-use | 5.4 | - | - |
Intangible asset | 5.5 | 15,773 | 17,073 |
Total non-current assets | 2,463,829 | 2,612,998 | |
Current assets Inventory | 7 | 34,923 | 74,378 |
Receivables from clients | 8.1 | 169,095 | 173,193 |
Other Receivables | 8.2 | 258,528 | 329,228 |
Prepayments | 203,349 | ||
Cash and cash equivalents | 9 | 269,126 | 21,024 |
Deferred Tax Asset | 54,366 | ||
Total current assets | 989,387 | 597,823 | |
Total assets | 3,453,216 | 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 | 410,745 | 700,783 |
Total equity | 2,549,306 | 2,839,344 | |
Current liabilities Trade payables | 12 | 18,952 | 18,952 |
Other payables | 13 | 255,370 | 173,791 |
Loan | 14 | 564,882 | 75,233 |
Interest Provisions for tax/Current Tax | 15 | 64,706 - | 51,139 |
Total current liabilities | 903,910 | 319,114 | |
Non-Current liabilities Deferred tax liabilities | 17 | 52,362 | |
Total Non-current liabilities | - | 52,362 | |
Total liabilities | 903,910 | 371,476 | |
Total equity and liabilities | 3,453,216 | 3,210,821 |
Bada Oladimeji Mobolaji Aisha Abdulaziz Chairman of the Board of Directors Chief Executive Officer FRC/2014/PRO/DIR/003/00000006009
Management financial statements For the period ended 31 January 2026
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | |||||
3months | 3months | 6months | 6months | ||
Notes | Nov25-Jan26 | Nov24-Jan25 | 31-Jan-2026 | 31-Jan-2025 | |
₦'000 | ₦'000 | ₦'000 | ₦'000 | ||
Revenue | 11 | 226,894 | 321,543 | 505,360 | 622,637 |
Cost of sales | 12 | (100,498) | (93,124) | (182,371) | (211,309) |
Gross profit | 126,396 | 228,418 | 322,989 | 411,328 | |
Administrative expenses | 13 | (288,708) | (79,658) | (457,621) | (166,782) |
Operating profit before tax & interest | (162,311) | 148,760 | (134,632) | 244,546 | |
Interest income | |||||
Finance cost | (63,866) | (2,346) | (64,706) | (4,693) | |
Operating profit before tax but after interest | (226,177) | 146,414 | (199,338) | 239,853 | |
Provision for Income tax (expense)/credit | 10.1 | - | - | - | - |
Profit/(loss) for the period | (226,177) | 146,414 | (199,338) | 239,853 | |
Other comprehensive income | |||||
Actuarial gains/losses on defined benefit scheme | - | - | - | - | |
Available for sale financial asset surplus/deficit | 100,000 | - | 100,000 | - | |
- | |||||
Management financial statements For the 6 month period ended 31 January 2026
STATEMENT OF CHANGES IN EQUITYIssued 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 Paid | (120,000) | (120,000) | |||||
Overstatement from prior periods | (70,700) | (70,700) | |||||
Profit/(loss) for the period | (99,338) | (99,338) | |||||
At 31January 2026 | 1,000,000 | 1,138,561 | 410,745 | 2,549,306 |
LEGEND INTERNET PLC
Management financial statements For the 6 months period ended 31 January 2026
STATEMENT OF CASHFLOW CASHFLOW FROM OPERATING ACTIVITIES | Notes | Unaudited 31-Jan-2026 ₦'000 | Audited 31-Jul-2025 ₦'000 | |
Profit/(loss) before tax & interest | (99,338) | 138,398 | ||
Adjustment to reconcile net income to net cash provided by operating activities: | ||||
Amortisation of intangible asset | 1,300 | 2,305 | ||
Depreciation of rights-of-use | - | 331 | ||
Depreciation of property, plant & equipment | 98,362 | 152,016 | ||
Finance cost | 3,689 | 29,443 | ||
Interest income | - | - | ||
Tax Credit | (52,945) | (118,829) | ||
Changes in assets and liabilities | ||||
Inventories | 39,455 | (56,379) | ||
Receivables from clients | 4,705 | 89,596 | ||
Receivables from resellers | 4,064 | (329,211) | ||
Prepayment | (203,349) | |||
Trade payables | (140,000) | 10,026 | ||
Other payables | 106,579 | 100,731 | ||
Total adjustments | (138,140) | (119,971) | ||
Net cash (used in)/from operating activities | (237,478) | 18,427 | ||
CASHFLOW FROM INVESTING ACTIVITIES | ||||
Purchases of property, plant & equipment | 1 | (50,494) | (29,029) | |
Proceeds from disposal of available-for-sale assets | 100,000 | |||
Interest income | - | - | ||
Net cash (used in)/from investing activities | 49,506 | (29,029) | ||
CASHFLOW FROM FINANCING ACTIVITIES | ||||
Loan | 564,882 | 9,186 | ||
Dividend Paid | (120,000) | - | ||
Principal Payment | (13,467) | - | ||
Loan Repayment | (49,373) | (29,443) | ||
Net cash (used in)/from financing activities | 382,042 | (20,257) | ||
Net change in cash and cash equivalents | 194,070 | (30,861) | ||
Cash and cash equivalents at the beginning of the period | (28,349) | 2,512 | ||
165,721 | (28,349) | |||
REPRESENTED BY | ||||
Cash & cash equivalent: | ||||
Cash and bank balances 9 | 165,514 | 21,024 | ||
Bank Overdraft | - | (49,373) | ||
165,514 | (28,349) | |||
NOTES TO THE MANAGEMENT FINANCIAL STATEMENT
PROPERTY, PLANT AND EQUIPMENT
As at 31 July 2025
Fibre Infrastructur
Wi-Fi Infrastructur
Plant & Machinery
Furniture & Fittings
Computer 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
50,494
At 31 January 2026
3,095,176
136,325
2,852
50
13,552
3,247,955
Depreciation
At 1 August 2025
560,493
32,718
464
1
7,861
601,537
Depreciation charge for the period
92,630
4,090
286
-
1,356
98,362
At 31 January 2026
653,124
36,808
750
1
9,217
699,899
Carrying amount At 31 January 2026
2,442,052
99,517
2,102
49
4,335
2,548,056
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 January 2026, 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 STATEMENTS5.5 INTANGIBLE ASSET (BILLING SYSTEM) | Unaudited 31-Jan-2026 | Audited 31-Jul-2025 |
Cost | ₦'000 | ₦'000 |
At 1 August | 26,005 | 22,088 |
Additions | - | 3,917 |
At 31 January 2025 | 26,005 | 26,005 |
Depreciation At 1 August | 8,931 | 6,626 |
Amortisation charge for the period | 1,300 | 2,305 |
At 31 January 2025 | 10,231 | 8,931 |
Carrying amount At 31 January 2025 | 15,773 | 17,073 |
At 31 July 2025 | 17,073 | 17,073 |
Unaudited | Audited | |
7 INVENTORIES Inventory items | 31-Jan-2026 ₦'000 22,868 | 31-Jul-2025 ₦'000 74,379 |
Unaudited | Audited | |
8 TRADE AND OTHER RECEIVABLES | ||
31-Jan-2026 | 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 |
8.2 | Other receivables | Unaudited | Audited |
31-Jan-2026 | 31-Jul-2025 | ||
₦'000 | ₦'000 | ||
Advance payment to vendor | - | 329,211 | |
Withholding tax credit notes | - | 16 | |
- | 329,228 |
Management financial statements For the year ended 31 January 2026
NOTES TO THE MANAGEMENT FINANCIAL STATEMENTS
8.3 Expected credit loss allowance on trade and other receivables
31-Jan-2026 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-Jan-2026 ₦'000 | 31-Jul-2025 ₦'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 | |
₦'000 | ₦'000 | |||
Cash at hand | 504 | 12 | ||
Taj Bank 0001685496 | 165 | 5,983 | ||
SunTrust 0002606166 | 108 | 1,485 | ||
Fcmb | 29,431 | 224 | ||
Access | 111 | 105 | ||
Parallex | - | 3 | ||
Providus | ||||
Tatum | ||||
GTB | 162 | |||
Flutterwave/Legend Pay | 35,033 | 13,212 | ||
Balance for statement of cash flow purposes at 31 October | 65,514 | 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 | ||
₦'000 | ₦'000 | ||
Cash at bank and in hand | 65,514 | 21,024 | |
Bank overdraft (note 7.1) | - | (49,373) | |
Balance for statement of cash flow purposes | 65,514 | (28,349) |
Management financial statement For the period ended 31 January 2026
NOTES TO THE MANAGEMENT FINANCIAL STATEMENTS
10 SHARE CAPITAL 2,000,000,000 ordinary shares of ₦0.50 | Unaudited 31-Oct-2025 ₦'000 1,000,000 | Audited 31-Jul-2025 ₦'000 1,000,000 |
11 RETAINED EARNINGS | Unaudited | Audited |
31-Jan-2025 | 31-Jul-2025 | |
Balance brought forward | ₦'000 700,783 | ₦'000 558,326 |
Dividend Paid | (120,000) | |
Overstatement from prior periods | (70,700) | |
Result for the period | (99,338) | 142,457 |
410,745 | 700,783 | |
12 TRADE PAYABLES | Unaudited | Audited |
31-Jan-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 | Audited |
31-Jan-2025 | 31-Jul-2025 | |
₦'000 | ₦'000 | |
Accrued PAYE | 39,214 | 26,695 |
Staff pension - Employee | 23,949 | 18,008 |
Staff pension - Employer | 29,396 | 20,209 |
Industrial Training Fund | 4,949 | 4,257 |
Nigeria Social Insurance Trust Fund | 231 | 4,257 |
National Housing Fund | 5,671 | 3,752 |
Taxes Due | 42,039 | - |
Bandwith Provider - Liquid | 37,356 | - |
Corporate Subscriptions | 712 | 5,375 |
Professional services | 8,804 | 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 |
280,370 | 173,791 | |
Trade payables is analysed below | ||
Current | 16,750 | 18,952 |
Non-current | - | - |
16,750 | 18,952 | |
| Unaudited 31-Jan-2025 ₦'000 | Audited 31-Jul-2025 ₦'000 |
Bank overdraft | - | 49,373 |
Bank loan | 26,933 | 25,860 |
Commercial Paper | 537,949 | |
564,882 | 75,233 |
Management financial statements For the year ended 31 October 2025 | ||
NOTES | TO THE MANAGEMENT FINANCIAL STATEMENTS | |
15 | INCOME TAX PAYABLE | Unaudited Audited 31-Jan-2025 31-Jul-2025 |
₦'000 ₦'000 | ||
Balance at 1 August | - 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-Jan-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
Income tax (credit)/expense charged to income statement
- (62,210)
- (4,059)
Charge for the year in OCI - -
Total income tax (credit)/expense recognised in current year | - | (4,059) | |
20 | REVENUE | Unaudited 31-Jan-2026 | Audited 31-Jan-2025 |
₦'000 | ₦'000 | ||
Legend fiber | 198,296 | 318,151 | |
Legend WiFi | 2,195 | 3,201 | |
Legend pay | 279 | 190 | |
Wholesale Bandwidth | 12,578 | - | |
CPE sales | 7,204 | - | |
220,551 | 321,543 |
21 | COST OF SALES | Unaudited | Audited |
31-Jan-2026 | 31-Jan-2025 | ||
₦'000 | ₦'000 | ||
Customer Last Mile Installation | - | - | |
Infraco (Abuja) | 33,075 | 58,075 | |
Bandwidth cost | 41,925 | 27,950 | |
Legend pay | 3 | 216 | |
CPE | - | 2,595 | |
Legend home | 495 | 4,289 |
75,498 93,124
For the period ended 31 January 2026
NOTES TO THE MANAGEMENT FINANCIAL STATEMENTS
22 | ADMINISTRATIVE EXPENSES | Unaudited | Audited |
31-Jan-2026 | 31-Jan-2025 | ||
Notes | ₦'000 | ₦'000 | |
Director remuneration | - | - | |
Personnel cost | 153,500 | 57,570 | |
Repairs and maintenance | 2,940 | 2,648 | |
Transport & travelling | 29,041 | 4,515 | |
Printing & stationeries | 95 | 272 | |
Electricity | 12,490 | - | |
Board expenses | 700 | 410 | |
Office expenses | 10,970 | ||
Fueling | - | ||
Entertainment | 3,559 | 336 | |
Legal fee | 6,000 | - | |
Bank charges | 256 | 796 | |
Marketing expenses | 22,795 | 477 | |
Email marketing | - | ||
Licence and renewal | 156 | 156 | |
Toll number | - | ||
Delivery | - | ||
Insurance | - | ||
Audit fees | - | ||
Professional fees | 79,450 | 9,294 | |
Other professional services | 20,000 | - | |
Telephone | 40 | 2,496 | |
Consultancy | - | - | |
Statutory fees | - | ||
Rent | 6,221 | 1,000 | |
Insurance | - | ||
Training | 20 | - | |
Issuance Expenses | 9,843 | ||
Industrial Training Fund | - | ||
Nigeria Social Insurance Trust Fund | - | ||
National Housing Fund | 1,919 | ||
Janitorial services | 600 | 600 | |
Amortisation of intangible asset | 1,300 | - | |
Depreciation of rights-of-use | - | - | |
Depreciation of property, plant & equipment | 98,362 | 75,244 | |
Rental Fees | 8,333 | - | |
457,621 | 166,782 |
23 | PERSONNEL COST | ||
31-Jan-2026 | 31-Jan-2025 | ||
₦'000 | ₦'000 | ||
Staff salaries | 123,933 | 57,570 | |
Staff PAYE | 12,519 | ||
Staff pension | 15,128 | ||
Staff Welfare | 1,919 | ||
153,500 | 57,570 | ||
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-Jan-2026
31-Jan-2025
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-Jan-2026
31-Jan-2025
₦'000
₦'000
Fibre infrastructure
92,630
70,392
Wi-Fi infrastructure
4,090
4,090
Computer equipment
1,356
1,294
Furniture & fittings
1
1
Plant & machinery
286
232
98,363
76,008
26
PROFIT BEFORE TAXATION
31-Jan-2025
31-Jul-2025
₦'000
₦'000
This is stated after charging/(crediting):
Directors' remuneration
17,434
26,302
Audit Fees
-
5,375
Depreciation and amortization
99,662
154,321
27
RELATED PARTY DISCLOSURES
(i)
Key management personnel compensation
Remuneration(excluding pension contributions) for Directors of the Company charged to the profit or loss are as follows:
Executive Directors
₦'000
Executive Directors
₦'000
Short- term benefits:
Salary
17,434
26,302
17,434
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
LEGEND INTERNET PLC
Management financial statements For the period ended 31 January 2026
NOTES TO THE MANAGEMENT FINANCIAL STATEMENTS27 RELATED PARTY DISCLOSURES (Cont'd)
Numbers and cadre of key management personnel
Director
31-Jan-2026
Number
1
31-Jan-2025
Number
1
Managing Director (MD)
1
1
Senior Manager (SM)
3
3
Manager (M)
5
5
-
Salary Range
31-Jan-2026 31-Jan-2025
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-Jan-2026 31-Jan-2025 ₦'000 ₦'000Earnings after tax and interest (99,338) 239,853
Weighted average numbers of ordinary shares at year end (thousands)
2,000,000 2,000,000
Basic earnings per share (Kobo) (11) 12
- Diluted
-
Basic
-
EARNINGS PER SHARE
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
-
FINANCIAL INSTRUMENTS
-
Capital risk management
The Company manages its capital to ensure that the Company will be able to continue as a go
The capital structure of the company consists of equity attributable to equity holders of the c 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
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.
-
Categories of financial instruments Financial assets
Unaudited Audited
31-Jan-2025 31-Jul-2025 ₦'000 ₦'000Cash and bank balance 65,514 21,024
Receivables
Trade receivables 166,472 173,193
Other receivables 258,528 329,228
425,000 502,420 Financial liabilitiesFinancial liabilities at amortized cost
Trade payables 18,952 18,952
Other payables 280,370 173,791
Loans 625,899 75,233
925,221 267,976 -
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 Companyʼs reported results.
The Companyʼs 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 companyʼs 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 Companyʼs 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 companyʼs maximum exposure to credit risk, which at the reporting date, was as follows:
31-Jan-2026 31-Jul-2025 ₦'000 ₦'000Receivables 425,000 502,420
-
Collateral held as security and other credit enhancements
The carrying amount of financial assets recorded in the Management financial statements represents the companyʼs 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
-
Capital 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 companyʼs 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.
VALUE ADDED STATEMENTUnaudited Audited
31-Jul-2025 31-Jul-2024Turnover Interest income | Note | ₦'000 1,191,077 - | % | ₦'000 % 1,138,433 35 |
1,191,077 | 1,138,467 | |||
Bought in goods and services | (639,659) | (680,926) | ||
Value added | 551,417 | 100 | 457,541 100 | |
Applied as follows: | ||||
To pay employees Salaries and other staff costs | 14 | 195,852 | 35.5 | 85,644 18.7 |
To pay government Income tax expense To providers of capital | 10.1 | - | - | 71,354 15.6 |
17 | 28,583 | 5.2 | 24,831 | 5.4 |
13 | 2,305 | 0.0 | 2,209 | 0.5 |
13 | 152,016 | 27.6 | 154,036 | 33.7 |
172,661 | 31.3 | 119,467 | 26.1 | |
551,417 | 100 | 457,541 | 100 |
Finance cost
To provide for replacement of assets and expansionAmortisation of intangible asset Depreciation of property, plant & equipment
Profit for the year
Value added represents the additional wealth the company has been able to create by its own and its employees' efforts. This statement shows the allocation of that wealth among employees, shareholders, government, capital providers and that retained for the future creation of more wealth.
