NCR, an ICT services company, recorded a 218 percent increase in profit after tax for the first half of 2026, rising to N143.5 million from N44.6 million in the corresponding period of 2025. The strong bottom-line performance was largely driven by a notable year-on-year increase in other income.
Revenue for the period grew by 39 percent compared to H1 2025, with World Customer Services emerging as the primary growth driver. The segment expanded 77 percent year-on-year and now accounts for close to 90 percent of total revenue, underlining its central role in the company’s overall performance.
Gross profit rose 31 percent year-on-year, from N161 million in H1 2025 to N207 million in H1 2026. Cost of sales grew slightly faster, at 39 percent, which moderated gross margin expansion somewhat, even as the absolute profit figure improved.
On the balance sheet, total assets grew to N7.35 billion in H1 2026, up from N5.35 billion a year earlier, supported by a significant increase in cash and cash equivalents, which rose from N643 million to N1.99 billion over the period — a build-up of liquidity that strengthens the company’s cash position heading into the second half of the year.
Total liabilities increased by 18 percent year-on-year, mainly reflecting a rise in trade payables, consistent with the broader growth in business activity. Shareholders’ equity remains negative, a position that reflects the company’s accumulated retained losses from prior periods; this is an area the company will likely continue working to address as profitability builds.
Cash generated from operating activities came in at N107 million for H1 2026, a 16 percent increase year-on-year, pointing to improving cash conversion alongside the growth in earnings. Cash flow from financing activities was nil for the period, unchanged from H1 2025.
On liquidity metrics, NCR’s current ratio stands at 0.78, meaning the company holds N0.78 in current assets for every N1 of current liabilities. This suggests short-term liquidity is tighter than the standard benchmark of 1.0, an area worth monitoring, though the company’s improving cash generation and rising cash balances may help ease this pressure over the coming periods. Return on assets stands at 2 percent for the period.
NCR has been one of the strongest-performing stocks on the exchange, delivering a 121 percent year-to-date return to shareholders. The company currently holds a market capitalisation of N17.4 billion, with shares trading at N161.20.