Clydestone Ghana PLC, the listed payment switching and banking technology firm, will not pay a dividend to shareholders for the 2025 financial year, as a sharp decline in profit after tax and a strategic pivot toward capital-intensive investments prompted the board to conserve cash.
The company recorded a profit after tax of GH¢463,962 for the year ended December 31, 2025, an 88 per cent collapse from the GH¢3.95 million reported in 2024.
The dramatic fall in earnings means shareholders who received a dividend of GH¢0.032 per share (totalling GH¢1.088 million) in respect of the 2024 financial year will receive nothing for 2025.
In the company’s audited financial statements released on May 13, 2026, the board explained that the decision to skip a dividend was driven by the capital requirements of its three-year strategic plan and the need to maintain adequate liquidity as new revenue platforms are brought to market.
“Having regard to the FY2025 profit performance, the capital requirements of the Company’s Three-Year Strategic Plan, and the need to maintain adequate liquidity as new revenue platforms are brought to market, the Directors do not recommend the payment of a dividend in respect of FY2025,” the statement signed by Acting Chairman and CEO Paul Jacquaye read.
The board said it would keep dividend policy under review and intends to resume distributions to shareholders as the company’s earnings trajectory strengthens in line with its strategic projections.
Profit collapse explained
The sharp decline in profitability, the company disclosed, was driven by four primary factors: a correction in directors’ remuneration to market rates, significant capital investment in property, plant and equipment, costs associated with a new finance lease arrangement, and general operational cost growth.
Directors’ remuneration more than doubled, rising from GH¢842,670 in 2024 to GH¢2.145 million in 2025. The board explained that this reflected “a correction to market-rate executive compensation following a period in which management remuneration had been maintained at levels that did not reflect the scale and complexity of the Company’s operations, the breadth of regulatory obligations under the EPSP licence regime, or the seniority and specialisation of the executive team.”
Depreciation charges increased by GH¢480,971 to GH¢612,944, driven by GH¢931,657 in new capital expenditure on motor vehicles, computers, and office equipment, plus the recognition of GH¢1.22 million in right-of-use assets under a finance lease arrangement for operational vehicles.
Interest and financial charges rose to GH¢1.035 million from GH¢666,862, reflecting interest on the finance lease obligation and higher average overdraft utilisation during the period.
Revenue remains flat but underlying performance stronger
Total revenue for the year was GH¢23.64 million, a marginal 1.2 per cent decline from GH¢23.92 million in 2024. However, the company noted that the broadly flat cedi revenue figure understated underlying operational performance, as the Ghana Cedi appreciated materially against the US dollar during the year. Adjusting for exchange rate movements, the company said its core revenue base actually grew.
Notably, the Smart Source revenue line exploded from GH¢65,352 in 2024 to GH¢1.102 million in 2025, a staggering 1,587 per cent increase, reflecting the successful deepening of the company’s service offering in that segment.
Strategic pivot to UnionPay and digital channels
Looking ahead, Clydestone has outlined a three-year strategic plan built on three pillars: banking branch transformation, UnionPay card issuing and processing, and digital channels and API payments.
The company holds UnionPay International Principal Acquirer and Third-Party Processor status, a distinction shared by very few institutions in West Africa. Management indicated that mandates from initial target institutions are expected to be formalised in 2026, creating a new recurring revenue stream from card processing fees.
The company is also developing a third-party payments API platform and inward remittance payout capability, enabling fintech partners, mobile money operators, and diaspora remittance providers to access Clydestone’s switching infrastructure programmatically.
Strong balance sheet despite cash drawdown
Clydestone’s cash position fell sharply from GH¢8.74 million at the end of 2024 to GH¢1.08 million at 31 December 2025, with a bank overdraft of GH¢964,535 resulting in a net cash position of just GH¢119,512.
The board explained that the large cash balance at the end of 2024 had been deployed during 2025 to substantially reduce accumulated payables obligations, particularly legacy levy and regulatory-related payables that had built up over prior periods. Other accounts payable reduced from GH¢9.22 million to GH¢5.15 million, and trade payables were fully cleared.
The company’s stated capital remained at GH¢554,850, with a capital surplus of GH¢3.01 million and retained earnings of GH¢2.24 million. Total assets stood at GH¢15.81 million, down from GH¢19.90 million in 2024.
Board composition
The board currently comprises Acting Chairman and CEO Paul Jacquaye, Executive Director Felistas Kisivo, Non-Executive Director Nii Obodai Torto, and Independent Non-Executive Director Dr Kwabena Adusei-Poku. Jacquaye holds 20,389,500 shares, representing 59.97 per cent of the company’s issued shares.
Audit opinion
PKF, the company’s external auditors, issued an unqualified opinion on the financial statements, stating that they gave a true and fair view of the financial position of Clydestone Ghana PLC and its subsidiaries as at 31 December 2025.
The financial statements were approved by the board on May 13, 2026.
