Briclinks Africa grows profit despite cash burn, heavy loans

Briclinks Africa Plc, a Nigerian telecoms and internet service provider, has posted a ₦9.27 million profit before tax for the second quarter of 2025, continuing its modest upward trajectory despite mounting liabilities, thinning cash reserves, and muted revenue growth.

The Abuja-based company recorded ₦135.6 million in revenue for the quarter ended June, up slightly from ₦131.6 million in Q1, while retaining a cumulative ₦65.3 million in earnings.

Key Financial Highlights:

• Revenue: ₦135.6 million in Q2 (up 3% QoQ)
• Profit Before Tax: ₦9.27 million in Q2, down 12% from ₦10.58 million in Q1
• Cash Position: Declined to ₦39.5 million in Q2 from ₦96.8 million in Q1
• Retained Earnings: Grew to ₦65.3 million
• Non-Current Liabilities: Heavy at over ₦8 billion, including director loans
• Earnings Per Share: 0.93 kobo in Q2 (down from 1.06 in Q1)
• Working Capital Ratio: Improved from 9.22 to 14.6

Despite a subdued telecoms market and regulatory bottlenecks, Briclinks appears to be managing its operations leanly. Its operating profit is largely driven by tight cost controls, evident in stable administrative expenses (₦36.4 million), and the absence of tax provisions.

However, the numbers also reveal deep fragility. Cash flows from operations declined sharply, and financing activities suggest heavy reliance on director support, with ₦77.5 million withdrawn from the director’s account in Q2. The company’s debt burden remains massive, with non-current liabilities exceeding ₦8 billion—largely unchanged quarter-on-quarter.

Notably, the firm holds ₦6.3 billion in intangible assets, raising questions about asset concentration in an industry where infrastructure and bandwidth costs are capital-intensive but not always fully monetized.

Investor Outlook

While the telecoms firm is still marginally profitable, its tight liquidity and dependence on insider financing may unsettle long-term investors. The absence of external borrowing activity and tax obligations suggests conservative financial structuring, but could also indicate stagnant scaling.

A share capital of just ₦10 million leaves little headroom for fundraising without equity dilution, and no dividend declarations signal a retained-earnings-first strategy.

The company’s share was flat by 12.30pm Monday.

Editor’s Note: This content was generated with the help of AI and reviewed by a human editor.