Caverton declares 9% revenue growth

Nigeria’s harsh economy has dealt a huge blow to the financial activities of the management of Caverton Offshore Support Group leading to a huge foreign exchange loss for the company.

This was made known in a statement made available to The PUNCH on Sunday.

The company said its finances were affected substantially by the fluctuations in the exchange rate and the high cost of doing business in Nigeria in the 2023 financial year.

The company explained that despite the tough terrain, the group recorded a revenue of N31.99bn, representing a growth of 9.4 per cent compared with N29.23bn recorded in the financial year ended December 31, 2022.

The company further said that the group’s gross profit in the review financial period ended December 31, 2023, stood at N7.2bn as against N3.69bn recorded in 2022, showing an increase of 95 per cent.

The company said the loss after tax in the review financial year stood at 147 per cent to N12.75bn, from N5.16bn in 2022.

The Chief Executive Officer of Caverton Offshore Support Group Plc, Olabode Makanjuola, noted that the operating business environment in the country was quite challenging in 2023.

He noted, “Across the economy, businesses experienced rippling operating costs spawned by extensively higher inflation, a substantial devaluation of the naira, and a rise in energy costs.”

Makanjuola, however, assured shareholders that the group had taken proactive steps to mitigate the negative impacts and is confident in the strategies put in place for future growth.

“As we move forward, we remain committed to capitalising on the abundant opportunities available in the global and African markets. We will continue to deliver quality marine and aviation logistics services to support companies within the oil and gas industry

“Our strategic focus will be on consolidating our market share in aviation and marine sectors, while exploring new and more profitable areas for investment,” he added

Chairman of Caverton Group Plc, Aderemi Makanjuola, also assured shareholders that the group would continue to focus on operational efficiencies and cost management which is crucial for maintaining profitability amidst fluctuating revenues.

“The group is doing more to reap the benefits of diversification. We are building boats for customers at no cost to our company. We have entered into a partnership with a Chinese company to make boat building more profitable and affordable for our customers as we now target electric boats,” he stated.

He also allayed shareholders’ fears, saying more business contracts are being secured from outside the country. “We have contracts with Benin Republic, Ivory Coast, Senegal, and many more to either train their pilots or service their helicopters.”

Meanwhile, shareholders who attended the virtual AGM commended the board and management of Caverton for their tenacity and ability to navigate the turbulent economic situation in the country.