By Chibuzor Alli
Briclinks Africa Plc, an Internet Service Provider and telecommunications operator listed on the Nigerian Exchange Limited, saw its cash and cash equivalents fall by 46.7 per cent to N2.12m at the end of the second quarter ended June 30, 2026, from N3.98m in the preceding quarter.
The decline, disclosed in the company’s Q2 2026 financial statements submitted to the exchange, came amid significant debt repayments and rising operating costs, pointing to tighter liquidity despite continued growth in revenue and profit.
The company’s net cash movement turned negative during the quarter, largely due to N32.08m spent on principal loan repayments.
Briclinks’ financial position also showed a significant imbalance between its liabilities and equity. Non-current liabilities stood at N7.85bn, comprising N7.22bn in long-term facility debt and N628.87m in directors’ current account obligations, compared with total equity of N127.17m.
Current liabilities also increased to N9.80m in the quarter, driven by a rise in short-term bank borrowings to N8.76m from N5.84m in the first quarter. Trade payables stood at N957,013.
With current assets of N7.37m, the company’s working capital ratio stood at 0.75, indicating that its short-term liabilities exceeded its current assets.
Operating expenses further weighed on cash generation during the period. Major costs included N11.73m in depreciation, N5.57m in administrative salaries, N4.24m in vehicle logistics and N3.77m in power and electricity expenses.
Despite the liquidity pressure, Briclinks recorded growth across key revenue and profitability indicators during the quarter.
Revenue rose 21.5 per cent to N163.89m from N134.89m in Q1 2026, while gross profit increased to N56.03m, helping to offset administrative expenses of N37.75m.
Profit before tax subsequently rose 22.2 per cent to N17.52m, compared with N14.34m in the preceding quarter. Retained earnings increased to N117.17m, while earnings per share stood at N1.75.
Commenting on the quarter’s performance, the company’s executive management said it remained focused on strengthening its balance sheet and managing liquidity.
“Our operational model generated robust cash flows from operations this quarter, allowing us to meet key debt obligations even as overall cash balances remained tight,” said Executive Director of Briclinks Africa Plc, Mohammed Buhari.
“We are actively prioritising working capital efficiency and prudent reserve management to support our underlying service delivery going forward”, he added.
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