Digicut Production & Advertising PLC reported a 62.3% surge in revenue to GH¢702,744 for the year ended December 31, 2024, up from GH¢433,042 in 2023, according to its audited financial statements.
Despite this growth, the Accra-based company deepened its losses, with a net loss after tax soaring by 349.2% to GH¢351,130, compared to GH¢78,170 in the prior year.
The steep loss was driven by a 104.9% jump in cost of sales to GH¢417,051 and a 145.9% spike in selling, general, and administrative expenses, which reached GH¢789,835. The company attributed rising operational costs to expanded business activities, though it did not specify exact drivers. Total assets dipped slightly to GH¢5.16 million, while equity fell 13.7% to GH¢2.2 million, reflecting retained earnings deficits. Liabilities climbed 7.2% to GH¢2.96 million, signaling increased borrowing.
Cash reserves dwindled to GH¢21,410 from GH¢32,879 in 2023, with net cash outflow from investing activities totaling GH¢122,088 due to property and equipment purchases. Directors opted against dividend payments, citing negative retained earnings of GH¢898,733, in compliance with Ghana’s Companies Act.
Auditors BETA & Associates issued an unqualified opinion, affirming the financial statements’ adherence to IFRS and local regulations. However, they highlighted reliance on the going concern assumption, noting no immediate liquidity risks but underscoring the need for sustained operational adjustments.
The company’s financial disclosures revealed extensive related-party transactions, including GH¢3.1 million in receivables and GH¢1.49 million in payables linked to entities within the Groupe Nduom network, its majority shareholder. Directors maintained that internal controls remained robust, with no material irregularities detected.
Digicut’s struggles mirror broader sectoral challenges in Ghana’s competitive advertising and print services market, where rising input costs and delayed client payments often strain profitability. The firm’s reliance on short-term investments and intercompany financing underscores efforts to stabilize cash flow amid economic headwinds. While revenue growth signals market demand, analysts caution that cost containment and debt management will be critical for long-term viability.
