Global Spectrum Energy Services Plc (GSES) grew its revenue by a significant 31% to N2.6 billion in the financial year ended December 31, 2019, from N1.87 billion accounted for in the previous year 2018. The growth in revenue occurred as the company continued to expand its operations and grow its contracts portfolio. The growth in revenue however, came as the company’s profit dipped to N112.7 million in the period under review from N595 million recorded in the preceding year 2018.

The company at the annual general meeting held Monday in Lagos, said it achieved the growth in revenue in spite of very tough and challenging environment as it continues to focus on excellent service delivery to its clients.

Bar. Osahon Idemudia, who presided as the Chairman at the AGM said that strong drive for increased businesses yielded good results that translated to revenue growth. He said, “In addition to strengthening our current businesses, we are also exploring other business lines, one of which is the merchant escort business, an area that we see huge opportunity for growth”.

The chairman explained that the drop in profit occurred mainly as a result of a loss from the sale of one of the company’s assets which has been underutilised, and not as a result of a loss in the ordinary course of operations. He said the asset constituted a drain pipe on the company’s profits as it attracted huge depreciation charges. He noted it was of sound business decision to dispose of the asset and take the loss at this point.

The shareholders at the AGM expressed satisfaction at the performance of the Company, having shown resilience in generating more businesses despite the very harsh and uncertain economic condition under which businesses operate in Nigeria. They however cautioned the management to be cost conscious in the running of its operations.

According to the shareholders, the performance of the company shows that Board and management are quite focused and understands the operational dynamics of their industry of business. According to William Adebayo, a shareholder, the revenue growth of the company for the period being considered is quite commendable. This is more so, he said, as most organisations within the sector that GSES operates are still trying to find their feet in the very uncertain business environment. He urged the board and management to remain focused to ensure that the performance is sustained, but with a total reversal in profit decline.

Odunuga Samiat, another shareholder, speaking commended the company for being consistent in declaring profit, even as she noted that the dip in the 2019 profit does not speak good of the management. She therefore urged management to find ways to efficiently manage its costs and improve on profitability.

Recall that the company paid a dividend of 5kobo for the 2018 financial year. It hopes to keep rewarding the shareholders as the fortunes of the company improves.

Global Spectrum Energy Services Plc is a marine security and logistics company, with added operational competencies in energy and engineering services in the oil and gas sector. The company was incorporated in on March 14, 2006 and converted to a public limited company in 2013 in continued pursuit towards the achievement of its strategic growth objectives. The company was listed on the main board of the Nigerian Stock Exchange in 2017 and its shares are actively traded on the floor of the Exchange. It currently has over 500 shareholders in its register of members.