John Holt Plc reported a steep decline in profit for the year ended September 30, 2025, as a collapse in revenue and weaker operating income outweighed gains from asset revaluation and an improvement in cash generation.
The Lagos-based engineering, marine, and property services company posted profit after tax of N469 million, down 81 percent from N2.47 billion a year earlier, according to its audited financial statements. Earnings per share fell to 120 kobo from 634 kobo, reflecting pressure on its core business lines.
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Revenue dropped 54 percent to N1.45 billion, from N3.15 billion in the prior year, marking one of the sharpest contractions in the company’s recent history.
The decline points to weaker demand across its power equipment, marine services, and industrial leasing operations, sectors that have struggled amid Nigeria’s high interest rates, foreign-exchange volatility, and delayed capital spending.
Gross profit slid to N319 million from N616 million, even as the cost of sales declined sharply. Operating profit fell to N592 million, from N2.78 billion, reflecting how much of the previous year’s earnings strength had been driven by non-recurring items.
Other operating income, largely tied to asset disposals and property-related gains, dropped to N820 million from N4.76 billion. A N70 million foreign-exchange gain helped offset financing pressure, reversing the heavy FX losses recorded in 2024.
Finance costs rose to N228 million, weighing on profit before tax, which declined to N364 million from N2.57 billion. Deferred tax credits lifted reported profit above pre-tax earnings, highlighting the role of accounting adjustments rather than operating momentum.
Despite the earnings slump, John Holt’s balance sheet strengthened. Total assets rose 10 percent to N9.74 billion, driven largely by higher valuations of investment properties, which increased to N7.26 billion from N6.70 billion a year earlier.
Shareholders’ equity climbed to N5.27 billion, from N4.80 billion, supported by retained earnings and reserve reclassifications. Issued share capital remained unchanged at N195 million, with no fresh equity raised during the year.
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The company’s growing reliance on property assets provides a balance-sheet buffer, though it also leaves earnings increasingly sensitive to valuation movements rather than operating cash flows.
Cash flow showed a clearer improvement. Operating activities generated N453 million in net inflows, reversing a N588 million outflow in the prior year, helped by tighter working-capital management.
Capital expenditure remained modest at N47 million, while financing outflows declined to N195 million, reflecting lower debt repayments. As a result, cash and cash equivalents rose to N236 million, from N22 million a year earlier.
John Holt’s stronger liquidity and asset base offer resilience, but the sharp revenue contraction raises questions about the durability of earnings without a recovery in core industrial demand. Investors will be watching whether easing FX pressures and a pickup in infrastructure spending can translate into a top-line rebound in the year ahead.