Chams plc has announced its audited result for the year ended December 31, 2010, at its annual general meeting held in Abuja. The result shows turnover rise by 50 percent, from N989 million to N1.48 billion, gross profit jumped by a significant 280 percent from N137 million in 2009 to N520 million in 2010, while it witnessed a 24 percent dip in profit to N2.1 billion from N2.8 billion the previous year. This performance indicates significant improvement in the top-line underlying profit-making capacity of the firm. In addition, interim report and accounts of the company for the first half (Q2) ended June 30, show a relatively improved performance as turnover rose by a steep 257 percent from N457 million in 2009 to N1.63 billion in the same period of 2010, while gross profit increased also by a steep 377 percent. The company reversed from a negative net profit margin of about 63 percent to a positive net return margin of about 14 percent as it recorded a profit after tax of N224.2 million within the six-month period compared with net loss of N286.2 million in the corresponding period of 2009. Speaking at the meeting, Adebayo Akinde, chairman, Chams, said the company had surmounted the operational challenges that adversely affected its performance through internal restructuring and deployment of innovative technologies. According to him, the restructuring and consistent investments in technology has improved efficiencies and profitability of existing and new projects being undertaken in the areas of identity management payment and transaction systems, thereby galvanising the company into an era of growth, as well as stable and improved returns to shareholders. “I wish to assure you of remarkable improvement in earnings by your company in 2011, which is evident in the financial results posted in the first and second quarter of the year,” Akinde disclosed. It would be recalled that the company had invested in building enabling platforms such as the ChamsCity digital malls in Lagos, Abuja and Port Harcourt, data capture equipments, transaction switching platform (ChamsSwitch), mobile payment platform (ChamsMobile), data centre to host and process transactions, Point of Sales terminals, as well as ChamsVarsity, an information and communications training institute, among others. This is in spite of the prevalent liquidity squeeze in the financial sector that restricted its access to much-needed debt and equity financing for projects execution. In his remarks, Demola Aladekomo, managing director, Chams, said the company’s growing profile in the country’s emerging electronic and transactions payment segment has been strengthened by the provisional and substantial licences granted it by the Central Bank of Nigeria (CBN) to deploy mobile payment services, prepaid cards, offsite automated teller machine network and a transaction switching platform. “Our investments in identity management, payments and transactions infrastructure as well as the acquisition of all requisite electronic and mobile banking licences has positioned Chams as a leading provider of consumer convenience banking services as the country transits into a cashless economy,” he stated. President, Nigeria Shareholders Solidarity Association, Timothy Adesiyan, said shareholders were happy that the company adopted a sustainable growth approach. “We appreciate the kind of technology you have put in place, which has put you ahead of other competitors. We are happy that the board, management and staff are taking the company to greater heights. All we can do is to give you supports and we will surely support you,” Adesiyan said. Another shareholder, Bisi Bakare said Chams had demonstrated commitment to creating long-term value for shareholders, urging shareholders to support the company.