By Chinwendu Obienyi

The Board and Management of Ardova Plc, says with its continuous increase in capital expenditure to facilitate strategic expansion, it expects to see higher returns within a three year window.

This was even as the company announced that its profit before tax (PBT) appreciated by 37 per cent to N1.60 billion in the first quarter (Q1) of 2022 from N1.17 billion reported in Q1 2021.

The company also announced N192.47billion revenue for the year ended December 31, 2021, representing an increase of nearly 6 per cent over N181.66 billion reported the prior year, thus closed the 2021 financial year with N1.54 billion profit as against N2.06 billion reported in 2020 full year result and accounts.

Furthermore, its revenue grew by 21.4 per cent to N50.6 billion in Q1 2022 from N41.65 billion reported in Q1 2021, while its Gross profit jumped by 61.8 per cent to N5.42 billion in Q1 2022 as against N3.35 billion in Q1 2021.

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Commenting on the 2021 audited financial statement, the Chief Executive Officer, Ardova Plc, Olumide Adeosun in a statement said, 2021 proved to be an eventful year for Ardova, as it marked the completion of its stabilisation strategy, with the consequent strengthened balance sheet providing the leverage for the inorganic expansion required to evolve Ardova into an integrated energy company.

Whilst revealing that the company concluded the acquisition of Enyo Retail and Supply Limited (ERSL), Adeosun noted that the company also made further investments in cleaner energy infrastructure, as it commenced onsite work on its 20,000 metric tonne Liquefied Petroleum Gas (LPG) storage facility in Ijora.

Also commenting, the Chief Financial Officer, Ardova Plc, Moshood Olajide said, the company’s full year and Q1 numbers showed resilience but revealed that as a group, it was negatively impacted by Axles & Cartage Limited-its subsidiaries, which faced operational environment issues and the newly acquired Enyo, which is presently undergoing a transformation process to drive operational efficiency and profitability.

Olajide said, “We also continued to increase our capital expenditure, principally in investments that facilitate our strategic expansion, and we expect to see returns within a three-year window. The losses experienced in 2021 are an expected reflection of the strategic inorganic growth programme of the company, and do not affect the viability of the company, especially as some of the immediate benefits of this programme were illustrated by the better year on year performance recorded in our Q1 2022 results.”