Every NGX-listed company publishes an annual report. This guide explains how to navigate one as a shareholder — covering the key sections and what the main financial figures show.
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Every NGX-listed company is required to publish an annual report containing audited financial statements, a directors' report, corporate governance disclosures, and other material information. Annual reports are the most authoritative and comprehensive source of information about a listed company's performance and position. They are publicly available on the NGX disclosure portal and the company's own investor relations page at no cost.
NGX disclosure portal (ngxgroup.com): all regulatory filings including annual reports are submitted here by listed companies. Company investor relations websites: most large NGX companies publish annual reports on their own sites. SEC Nigeria website (sec.gov.ng): also hosts certain filings. Annual reports are sent to registered shareholders — ensuring your registered address with the registrar is current means you receive physical or digital copies.
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A typical NGX company annual report includes: (1) Chairman's statement and CEO's report — management's narrative on the year. (2) Directors' report — formal board report on business performance. (3) Corporate governance report — board composition, committee activities, and compliance disclosures. (4) Auditor's report — the independent auditors' opinion on the financial statements. (5) Financial statements — income statement, balance sheet, cash flow statement, statement of changes in equity, and notes. (6) Other disclosures — related party transactions, share capital details, registrar information.
The income statement (profit and loss account) shows: Revenue/turnover — total sales or income generated. Gross profit — revenue minus direct costs. Operating profit — gross profit minus operating expenses. Profit before tax (PBT) — the headline profit figure before corporate income tax. Profit after tax (PAT) — the earnings attributable to shareholders. Earnings per share (EPS) — PAT divided by shares in issue: the fundamental per-share profit figure used in P/E ratio calculations. Comparing income statements across multiple years reveals whether the business is growing, stable, or declining.
The balance sheet shows what the company owns (assets), what it owes (liabilities), and what shareholders own after liabilities are deducted (equity/net assets). Key figures to understand: Total assets — everything the company controls. Total liabilities — all debts and obligations. Shareholders' equity — assets minus liabilities; this is book value. Debt levels and debt-to-equity ratios are watched by investors to assess financial leverage risk. A highly indebted company has higher financial risk, particularly when interest rates rise.
The cash flow statement shows actual cash movements, not accounting-adjusted profits. A company can report high accounting profits but have poor cash generation if it has large receivables or capital needs. Three sections: Operating cash flow — cash generated from day-to-day business. Investing cash flow — cash spent on capital expenditure or acquisitions. Financing cash flow — cash from debt, equity issuance, or dividends paid. Investors pay particular attention to operating cash flow as the most direct measure of business cash generation quality.
Annual report data allows you to: calculate valuation ratios (P/E, P/B, dividend yield) using published EPS, book value, and dividend-per-share figures; compare year-on-year trends in revenue, profit, and cash flow; assess balance sheet strength and debt levels; evaluate dividend cover (is profit sufficient to sustain the declared dividend?); and compare one company's financial ratios to its sector peers. Annual reports are a starting point for research — not the sole input. Analyst notes, sector context, and management commentary all supplement the financial data.
Listed Nigerian companies publish quarterly unaudited financial results and annual audited accounts. Interim (half-year) results are also common. These are all filed on the NGX disclosure portal.
Audited results have been independently verified by external auditors who provide an opinion on whether the financial statements are true and fair. Unaudited results (quarterly, interim) are management-prepared and not independently verified. Annual reports always contain audited accounts.
EPS (earnings per share) is the profit attributable to each ordinary share — PAT divided by total shares in issue. It is the denominator in the P/E ratio calculation. Growing EPS over time generally indicates a growing business, all else being equal.
Important disclaimer
This article is for general information and educational purposes only. It does not constitute financial advice, investment advice, or any recommendation to buy, sell, or hold any security. Financial analysis is not a guarantee of investment outcomes. The value of investments can fall as well as rise. You should seek independent regulated financial advice before making any investment decision. Shares Saver does not provide financial advice.
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