Executive Summary
ABC Transport Plc (“ABC Transport” or “the Group”) delivered a robust performance for the nine months ended 30 September 2025, with significant revenue growth, improved operational efficiency, and higher profitability compared to the prior period. The Group’s revenue increased 48% YoY to ₦11.92 billion, driven by higher transport service volumes and contract execution, while the Company’s revenue rose 60% YoY to ₦6.27 billion. Direct costs rose in line with revenue but at a lower rate, resulting in a gross profit of ₦2.54 billion for the Group (+56% YoY) and ₦1.36 billion for the Company (+67% YoY).
Operating profit rose significantly to ₦849.7 million for the Group from a marginal ₦37.9 million in 9M 2024, reflecting tight control over administrative expenses. Finance costs decreased to ₦299 million from ₦362 million, further supporting net profit.The Group recorded a Profit After Tax of ₦585.7 million (up from ₦126 million), while the Company reported ₦295.9 million, indicating solid earnings growth. Total comprehensive income for the Group stood at ₦593.4 million, boosted by positive foreign exchange movements, compared to a loss of ₦75 million in 9M 2024. The balance sheet remains healthy, with total assets of ₦13.98 billion and equity of ₦1.86 billion, demonstrating strong capitalisation and growth in retained earnings.
Financial Highlights – Statement of Profit or Loss
₦’ million 9M 2025 9M 2024 % Δ Company 9M 2025 Company 9M 2024 % Δ
Revenue 11,923 8,054 +48% 6,272 3,921 +60%
Gross Profit 2,544 1,635 +56% 1,361 815 +67%
Operating Profit 850 (38) +2,340% 539 270 +100%
Finance Costs 299 362 -17% 279 324 -14%
Profit Before Tax 927 1 +92,485% 479 154 +211%
Profit After Tax 586 126 +365% 296 58 +410%
Total Comprehensive Income 593 (75) +892% 296 58 +410%
Revenue and Profitability Analysis
- Revenue growth was driven by increased transport service volumes and successful execution of contracts.
- Gross profit margins improved slightly, reflecting effective management of direct costs.
- Administrative expenses were largely stable despite increased revenue, enhancing operating leverage.
- Finance costs declined (-17% YoY), reducing the impact on profitability.
- Total comprehensive income turned positive after a prior-year loss, aided by favorable foreign exchange movements.
Balance Sheet Overview
₦’ million Group 30-Sep-25 Group 31-Dec-24 % Δ Company 30-Sep-25 Company 31-Dec-24 % Δ
Total Non-Current Assets 10,727 4,665 +130% 9,290 3,319 +180%
Total Current Assets 3,250 2,419 +34% 1,547 1,163 +33%
Total Assets 13,977 7,084 +97% 10,837 4,482 +142%
Total Equity 1,863 540 +245% 1,538 1,048 +47%
Total Liabilities 12,115 6,544 +85% 9,299 3,434 +171%
Interpretation
- Non-current assets grew significantly due to increased investment in property, plant, and equipment, supporting business expansion.
- Current assets also grew, reflecting higher trade receivables and inventories to support operational growth.
- Equity increased substantially (+245% Group), reflecting strong retained earnings accumulation and positive comprehensive income.
- Liabilities grew, largely due to long-term borrowings and contract obligations, supporting asset expansion.
Key Ratios & Indicators
Metric Group 9M 2025
Revenue Growth +48%
Gross Profit Margin 21%
Operating Profit Margin 7%
PBT Margin 8%
PAT Margin 5%
Return on Equity (ROE) 31%
Current Ratio 0.50
Strategic Insights
- Strong revenue growth reflects operational efficiency and expanded market coverage.
- Improved gross and operating margins indicate effective cost management and operational discipline.
- Significant investment in non-current assets supports long-term capacity expansion.
- The Company’s continued focus on expanding fleet capacity and managing operational costs will drive profitability.
Strengths
- Robust revenue growth with improved profitability.
- Increased asset base supports long-term operational expansion.
- Strong equity growth and improved shareholder returns.
Weaknesses
- Current ratio below 1 indicates potential short-term liquidity pressures.
- Reliance on debt financing for asset expansion increases leverage risk.
Outlook
ABC Transport is poised for continued growth in the transport sector. Strong revenue performance, disciplined cost management, and strategic investment in assets position the Group for sustainable long-term profitability. Managing short-term liquidity and leverage will be critical to maintaining financial stability.
Analyst View
“ABC Transport has demonstrated impressive top-line growth and profitability improvement for 9M 2025. Strategic asset investments and strong operational execution have driven positive earnings momentum, but attention to liquidity management is essential given the increase in short-term liabilities.”
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