Omatek Ventures Plc increased its revenue by 650 percent in the nine months to September 2026, but the growth failed to improve its bottom line as administrative expenses pushed its loss to almost four times the level recorded a year earlier.

The computer and home entertainment products holding company reported revenue of N1.5 million for the nine months ended September 30, 2026, compared with N200,000 in the corresponding period of 2025.

Cost of sales rose to N300,000 from N100,000 in 2025, leaving gross profit at N1.2 million, against N200,000 a year earlier. However, administrative expenses climbed 282.8 percent to N48.35 million from N12.63 million, significantly outweighing the increase in revenue.

Consequently, the group’s operating loss widened to N47.15 million from N12.43 million, while its loss after taxes almost quadrupled, increasing to N41.02 million from N10.81 million in the same period in 2025.

The balance sheet showed almost no improvement in the group’s financial position. Total assets remained unchanged at N2.43 billion between September 2025 and September 2026, while total liabilities increased slightly to N5.18 billion from N5.12 billion.

The group’s negative equity position also deteriorated, with total equity moving to negative N2.75 billion from negative N2.69 billion. Trade and other payables rose to N3.96 billion from N3.91 billion, while short-term loans and borrowings remained unchanged at N1.00 billion.

Cash flow figures showed that the group continued to face substantial cash outflows. Net cash used in operating activities stood at N2.63 billion in the nine months to September 2026, compared with N2.66 billion in the corresponding period of 2025.

The outflow was largely effected by a N2.59 billion movement in trade and other payables, compared with N2.61 billion in the prior-year comparative. Net cash used in financing activities remained at N643.58 million, leaving the reported net cash outflow at N3.27 billion, against N3.30 billion a year earlier; the firm reported no investing activities.

While Omatek recorded a heavy percentage increase in revenue, its earnings remain under pressure from a cost base that is substantially larger than its income, while its liabilities continue to exceed its assets.

The ICT firm currently trades at N1.32 on the NGX, holds a market capitalisation of N3.9 billion, and a year-to-date return of 11.86 percent for its holders.