To further strengthen its position to remain profitable, Chams PLC has disclosed that it is selling off its investment in JKK.
JKK is a systems integrator, providing end- to- end IT solutions for ICT deployment and maintenance. Chams had invested in NGN100 million in 2014 when the company’s annual revenue was NGN4,1 billion.
The company is perhaps taking the step to recapitalise itself and run a stable business operations. In its just released half year 2016 result, gross revenue marginally grew by 1.5%. The company recorded NGN683 million compared to NGN673 million it raked in half year 2015.
The company’s net profit NGN159 million compared to a net loss it recorded with NGN463 million.
Chams did not disclose what stake its NGN100 million amount to. JKK is not a public company, knowing the impact of the divestment on its operations is technically-impossible. The decision to sell its stake in JKK might also suggest that the company is not viable for it to keep its investment there.
Considering the prevailing bearish sentiments in the market, how Chams plans to pulls off the sell off will be another bridge to cross.
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