Ellah Lakes released its third quarter and fifteen-month unaudited financial statements for 2025. The report indicates that the company is experiencing a revenue issue, and it is likely addressing this problem. It holds strong cash and working capital positions.
The revenue problem
Revenue is the building block of every organisation. Without it, a company may have no cash for its operations to meet its obligations. Ellah Lakes lacks revenue. It earned a three-month revenue of N5.1 million and a fifteen-month income of N72.2 million.
However, the company spent 1.4 million Naira on cost of sales and N1.9 billion in operating and finance expenses before depreciation. The company does not earn enough revenue to cover its costs. All in fifteen months to October 2025.
Ellah Lakes earns more money from its side hustle than from its revenue. A total of N186.1 million was earned in other income. This is 158% more than its 15-month revenue. Therefore, the company relies partly on other income and mostly on its bulk cash from its share premium and directors' loans to meet its obligations.
How Ellah Lakes plans to solve its revenue problem.
A stock market company earning in thousands is not ideal. How will it pay dividends now and in the future? Despite this, investors are buying the Agro-base’s stock. They are banking on its future prospects.
The company is working on an acquisition of Agro-Allied Resources and Processing Nigeria Ltd (AAPN) for N235 billion. AAPN makes revenue in billions of Naira. Its one-year revenue is reported as N1.62 billion. And earn a profit of over N330 million, according to this source.
If the acquisition succeeds, the company's revenue problem will be gone. It may also enjoy the benefit of synergy such as cost reduction. Thereby return to profitability.