Shareholders in CWG should expect a much higher dividend for the 2024 financial year. Even more relevant, is software bringing the lion share of revenue.

About the company

The firm was founded on September 26th, 1992, as Computer Warehouse Limited principally catering to Computer hardware projects.

Computer Warehouse Group Plc was incorporated in Nigeria as a private limited liability company on 1 February 2005 and listed on the Nigerian Stock Exchange on the 15th  of November 2013.

The Group and the Company are principally engaged in integrated information and communications technology services and solutions, IT consultancy, supply, installation, maintenance and support of hardware, software, and managed services.

The company had a free float of 21.25% (536,578,445 shares) as at 30 Sept 2024. 

CWG shareholders could receive a much higher dividend payout going by the marked jump in profit after tax due to higher software revenue in 9M 2024. 

9M 2024 numbers

Revenue went up by over 90% year on year. From N18.2 billion in 2023 to N34.7 billion in 2024. More importantly, software revenue is a bigger play than IT Infrastructure services.

For 9M 2024, software accounted for 53.4% or N18.6 billion of revenue earned during the period. In 9M 2023, IT infrastructure services accounted for 55.4% or N10.1 billion of the revenue earned during the period. 

Trade debtors are a concern 

Trade debtors moved up sharply from FY 2023 to 9M 2024

FY 2023, trade debtors were at N3.3 billion

9M 2024, trade debtors were at N7.8 billion

The company may need to either write off the debt, or go aggressive on debt recovery. 

Will shareholders get a bigger dividend? 

For FY 2023, the firm paid a 16 kobo dividend from the 23 kobo it earned during the year. That amounts to a payout ratio of 69.5%.

9M 2024 earnings per share was 90 kobo. 

Q3 2024 earnings per share was 23 kobo. 

FY 2024 earnings per share could come in around the N1.10 to N1.20 mark. 

A 70% payout ratio would amount to a 55 kobo final dividend.