Ellah Lakes Plc has posted a loss of N396.6m for the second quarter ended January 31, 2025, reflecting a financial strain amid rising administrative and personnel expenses.
The company’s unaudited financial statements filed on the Nigerian Exchange recently show that its operating loss stood at N675.8m, up from N344.2m in the corresponding period of 2024. The negative earnings were driven by higher administrative costs of N249.3m and personnel expenses of N414.3m, compared to N86.3m and N119.5m, respectively, in the previous year.
Revenue for the period came in at N18.97m, marking an improvement from the same period last year when the firm reported no revenue. However, this was not enough to offset the company’s mounting costs.
Its total liabilities surged to N4.61bn from N2.7bn, driven by a director’s loan of N1.88bn and borrowings amounting to N1.14bn. Meanwhile, retained losses widened to N4.81bn from N3.96bn, further eroding shareholder value.
Despite the losses, Ellah Lakes maintained its revaluation surplus of N14.93bn, contributing to total equity of N19.95bn at the end of the period.
Cash and cash equivalents saw a sharp decline to N23.1m from N243.3m recorded as of July 2024, raising concerns over the company’s liquidity position.
The PUNCH reported that agribusiness company Ellah Lakes Plc has revealed that it has notified the Securities and Exchange Commission of an investment by a core investor of the firm.
