Briclinks Africa Plc, an internet service provider, experienced remarkable financial growth in the fiscal year ending December 31, 2024. The company’s profit after tax soared to N22.36 million, marking a staggering 443.1% increase compared to the N4.12 million recorded in 2023. This surge in profitability can be attributed to several factors, primarily a significant expansion in the company’s operations and revenue generation.
The company’s turnover, a key indicator of its business activity, witnessed an impressive 359.7% growth, reaching N444.92 million in 2024, up from N96.77 million in the preceding year. This substantial increase in turnover suggests a significant expansion in the company’s customer base and service offerings, possibly driven by increased demand for internet services and successful marketing strategies. Despite a substantial rise in the cost of sales, which jumped from N58.14 million to N286.70 million, the company managed to maintain a healthy gross profit of N158.22 million, a 309.5% increase from the N38.63 million recorded in 2023. This suggests effective cost management strategies, despite the increased operational expenses associated with the expanding business.
Administrative expenses, however, saw a significant increase, rising to N129.84 million from N32.43 million in 2023. This rise in administrative costs could be attributed to factors such as increased staffing, marketing investments, and general overhead expenses related to the company’s expansion. Interest payable and similar charges also increased to N612,063 from N79,502 in the previous year, potentially reflecting increased borrowings to finance the company’s growth. Despite these increased expenses, the company’s profit before tax grew by an impressive 354%, reaching N27.76 million, up from N6.12 million in 2023.
The company’s financial position further solidified its growth trajectory. Cash and cash equivalents experienced a dramatic 424.7% increase, reaching N66.80 million compared to N12.73 million in 2023. This significant increase in cash reserves provides Briclinks Africa with greater financial flexibility and stability for future investments and expansion. The company’s total assets also grew substantially, primarily due to the addition of N6.02 billion in intangible assets and N1.39 billion in fixed assets. These additions likely represent investments in infrastructure, technology, and other assets crucial for expanding its service offerings and enhancing its competitive position in the market.
Briclinks Africa’s financing activities during the year involved securing substantial loans to fuel its growth initiatives. The company procured an N7.38 billion long-term loan and an N11.88 million short-term loan, providing significant capital for expansion and investment. Concurrently, the company repaid N22.53 million on the director’s current account. The company’s retained earnings also saw a substantial increase, with profit carried forward growing by 126.2% to N40.08 million from N17.72 million in the previous year. This growth in retained earnings reflects the company’s ability to generate and reinvest profits for future growth and development.
Further analysis of Briclinks Africa’s financial performance reveals consistent growth throughout the year. According to reports, the company recorded a gross profit of N46.28 million in the fourth quarter of 2024, representing a 3.72% increase compared to the N44.62 million recorded in the third quarter. This consistent quarterly growth underscores the company’s strong operational performance and its ability to sustain its growth momentum. The company’s remarkable financial performance in 2024 positions it for continued success and expansion in the rapidly evolving internet service market.
