Ellah Lakes Reports N396.6 Million Loss Amid Rising Costs

Ellah Lakes Plc has reported a loss of N396.6 million for the second quarter ending January 31, 2025, as increasing administrative and personnel expenses continue to weigh on its financial performance.

According to the company’s unaudited financial statements filed with the Nigerian Exchange, its operating loss climbed to N675.8 million, a significant rise from the N344.2 million recorded in the same period in 2024. The loss was primarily driven by a surge in administrative costs, which jumped to N249.3 million from N86.3 million, and personnel expenses, which increased to N414.3 million from N119.5 million in the previous year.

While the company generated N18.97 million in revenue during the period—an improvement from last year’s report of zero revenue—it was insufficient to counterbalance mounting expenses.

Ellah Lakes also reported a sharp rise in total liabilities, which surged from N2.7 billion to N4.61 billion. This was largely due to a director’s loan of N1.88 billion and borrowings amounting to N1.14 billion. Meanwhile, retained losses widened to N4.81 billion from N3.96 billion, further impacting shareholder value.

Despite these financial struggles, the company maintained a revaluation surplus of N14.93 billion, contributing to a total equity of N19.95 billion as of the reporting period. However, concerns over liquidity have intensified as cash and cash equivalents plummeted to N23.1 million from N243.3 million in July 2024.

Ellah Lakes has reportedly informed the Securities and Exchange Commission of an investment from a core investor, signaling potential efforts to stabilize its financial position.