Ronchess Global Resources Plc is still struggling with tough challenges in the construction industry that have hurt its earnings and profits for years. In 2025, the company’s results are marked by declining sales revenue, growing losses, and shrinking shareholders’ funds.
The audited financial report for the construction, real estate, and property development company for the year ending December 2025 reveals yet another drop in sales revenue, falling to N3.03 billion – the lowest turnover recorded in many years.
It’s a 55 per cent decline from last year’s sales revenue of N6.72 billion, which had sparked a brief hope for recovery after two years of declining earnings.
The company’s peak sales revenue was N15.08 billion in 2021, but by the end of 2025, it had dropped to just one-fifth of that amount. The decline is largely due to a volatile cost environment, with construction material prices soaring far beyond the expectations and budgets of operators.
The company hasn’t been very active in its real estate and property development ventures, with sales revenue coming solely from road construction projects. This single-source income model revealed its weakness in 2025, when the cost of sales alone surpassed the revenue earned.
Cost of sales fell by 14 per cent to N4.6 billion, while sales revenue dropped by 55 per cent, leading to a gross loss of N1.6 billion compared to a gross profit of N1.3 billion in the previous financial year.
Operating expenses came to just over N2 billion, down from nearly N3 billion in 2024. However, operating losses deepened, growing from N1.7 billion to N3.7 billion over the review period.
Further pressure arose from finance expenses, which jumped more than three and a half times to N2.3 billion, as short-term borrowings rose from N5.8 billion to N7.2 billion during the year to meet cash flow needs.
The company wrapped up the year with a net loss of nearly N6 billion, more than doubling the N2.3 billion loss recorded the previous year.
Ronchess Global Resources has seen losses for the third year running, beginning with N6.5 billion net loss in 2023.
Losses have steadily eaten away at retained earnings, falling from a peak of N13.9 billion in 2022 to a negative N2.5 billion by the end of 2025. As a result, the company’s equity capital has plunged from N19.3 billion in 2022 to just over N2 billion in 2025.
A major rebound in sales revenue is quite imperative for the company in the current financial year, as further loss is very likely to sweep off shareholders’ funds into the negative territory.
Comments are closed.