Ellah Lakes Plc has reported a loss of N396.6 million for the second quarter ended January 31, 2025, as the company grapples with rising administrative and personnel expenses.
Key Point: Despite a modest improvement in revenue to N18.97 million, Ellah Lakes' financial performance was weighed down by significant increases in administrative costs and personnel expenses, resulting in a widening operating loss and eroding shareholder value.
The company's unaudited financial statements reveal:
- Operating loss of N675.8 million, up from N344.2 million in Q2 2024
- Administrative costs of N249.3 million, up from N86.3 million in Q2 2024
- Personnel expenses of N414.3 million, up from N119.5 million in Q2 2024
- Total liabilities surging to N4.61 billion from N2.7 billion
- Retained losses widening to N4.81 billion from N3.96 billion
The company's liquidity position also raises concerns, with cash and cash equivalents declining sharply to N23.1 million from N243.3 million recorded as of July 2024.
How well do narratives help inform your perspective?