Amidst challenging market conditions, Chams Holding Company Plc, has reiterated that it remains committed to rewarding its shareholders with dividends, while simultaneously focusing on diversifying and expanding its investment portfolio.
The last dividend payout of 3kobo per share was declared in 2019, but the company, buoyed by robust financial performance in H1 2023, with a reported revenue of N5.42 billion as of June, is poised to announce new dividends. The company also set ambitious targets for the full year, aiming to achieve a substantial N11 billion in revenue.
To bolster its earnings, the management stressed that it was steadfast in its efforts to manage costs effectively and optimize profits as it expressed interest in venturing into the local production of SIM cards, smart identity cards, and other financial card products. Additionally, it plans to offer cross-border payment solutions and cybersecurity services, among other innovations.
The Group Managing Director, Mayowa Olaniyan during a recent presentation to the management of the Nigerian Stock Exchange Limited (NGX) and stockbrokers as part of the Company’s Facts behind the Figures event held in Lagos, highlighted key achievements, which include transitioning to a platform-based business model, transforming into a non-operating holding structure, expanding its operations, and developing the PenCentral solution.
Olaniyan attributed CHAMS’s impressive financial performance to significant growth across all its subsidiaries, namely Chams Access Ltd, Chams Switch Ltd, Chams Mobile Ltd, and its Card Centre Ltd, with the latter experiencing a remarkable 1471 per cent growth.
Emphasizing the commitment to enhance shareholder value, Olaniyan mentioned the company’s intention to enter the manufacturing sector, stating, “To boost our earnings, we have restructured to enable the Perso bureau that manufactures the SIM card bodies to integrate backward; we intend to establish a local manufacturing plant to produce a substantial portion of our requirements while sourcing raw materials externally.”
Tomiwa Aladekomo, a Director at the company, highlighted the significance of the plans for Cross-Border Payments and Cybersecurity, underscoring CHAMS’s commitment to providing cybersecurity solutions for banks and other financial institutions. He also mentioned that the company was carefully assessing regulatory frameworks provided by the Central Bank of Nigeria (CBN) to ensure compliance and profitability while distributing dividends to shareholders.
Furthermore, Aladekomo elaborated on the company’s progress in revolutionizing the pension industry with a streamlined platform designed to simplify payments and eliminate the complexities associated with traditional methods.
“CHAMS is set to revolutionize pension remittance with a seamless platform that simplifies payments and eliminates the hassles associated with traditional methods. What we have done is to create a very seamless platform that enables you to do it on your phone at your convenience, just as easy as opening an email. Because we have integrations with the Pension Fund Administrators (PFAs) and the Pension Fund Commission (PFCs), inputting your Retirement Savings Account (RSA) number automatically generates all other required information,” he explained.