Secure Electronic Technology Plc has reported a loss of N118m for the 2024 financial year, despite a rise in gross income. The company’s accumulated loss grew to N2.56bn, up from N2.44bn in 2023.
For the year ending December 31, 2024, the company saw its gross income increase by 24 per cent, from N3.50bn in 2023 to N4.35bn in 2024. However, high costs, including prizes, winnings, ticket expenses, and administrative costs, overshadowed this revenue growth.
Net income for 2024 was N283.62m, compared to N235.88m in 2023. However, operating expenses led to an operating loss of N82.65m, improving from the N163.39m loss recorded in 2023.
Additionally, prizes and winnings accounted for N2.44bn, while ticket costs rose to N1.60bn. Administrative expenses stood at N366.26m, down from N399.27m in 2023.
The company’s cash balance decreased by 24.6 per cent, from N69.91m in 2023 to N52.66m in 2024, raising liquidity concerns. Cash generated from operations was N29.06m, a slight improvement from N13.54m in 2023.
To manage liquidity, the outfit secured a N20m loan in 2024 to support its operations.
As of December 31, 2024, the company’s equity stood at N2.30bn, down from N2.42bn in 2023, due to the accumulation of losses. Its borrowings increased to N330.65m, up from N310.65m in the previous year. The company’s revaluation reserves remained at N2.05bn.
While revenue grew in 2024, rising costs and the continued accumulation of losses pose challenges for Secure Electronic Technology’s profitability. The company plans to focus on cost reduction and liquidity management in the upcoming year to return to profitability.
The PUNCH reported that Secure Electronic Technology Plc’s loss rose to N33.41m in the first quarter of 2024 from the N6.81m loss it recorded in the same quarter last year.
