Clydestone Ghana Plc recorded a consolidated net profit of GH¢273,326 for the first half of 2026, despite a sharp decline in revenue following the absence of major hardware deliveries during the period.

Revenue fell to GH¢3.30 million from GH¢20.87 million in the same period of 2025, representing a decline of about 84.2%.

Management explained that the two periods were not directly comparable because the first half of 2025 included large hardware deliveries. In contrast, revenue generated in the first half of 2026 came entirely from recurring services.

Within the six-month period, revenue increased by 30.2% from GH¢1.43 million in the first quarter to GH¢1.87 million in the second quarter, supported by growth in ATM managed services and card issuance.

Strong profit margin supports performance

Gross profit stood at GH¢2.80 million, down from GH¢5.51 million a year earlier. However, Clydestone achieved a strong gross profit margin of 85.1%.

Cost of sales dropped significantly to GH¢492,586 from GH¢15.36 million, reflecting the company’s shift from hardware sales to higher-margin service income.

Earnings before interest, tax and depreciation amounted to GH¢995,431, while operating profit stood at GH¢590,109.

Finance costs declined to GH¢213,107 from GH¢662,872. Profit before tax was GH¢377,002, compared with GH¢1.50 million in the first half of 2025.

After corporate tax and the Growth and Sustainability Levy, consolidated net profit declined by 75% to GH¢273,326 from GH¢1.09 million.

Earnings per share also fell from GH¢0.0322 to GH¢0.0080.

Despite the decline, management said both the first and second quarters remained profitable without any hardware revenue, demonstrating the strength of the company’s recurring services business.

Card issuance generates GH¢687,736

Clydestone’s card issuance business contributed GH¢687,736 to first-half revenue, making it the company’s third-largest revenue line.

The company also earns recurring income from ATM managed services, cheque processing, switching operations, technical maintenance and other payment infrastructure services.

Clydestone holds an Enhanced Payment Service Provider licence from the Bank of Ghana and is a UnionPay International Principal Acquirer and Third-Party Processor.

Assets and liabilities increase

Consolidated total assets rose to GH¢15.99 million from GH¢15.04 million at the end of December 2025.

Trade receivables increased to GH¢5.73 million from GH¢4.26 million, while inventories rose from GH¢559,310 to GH¢1.54 million.

Management said the inventory includes equipment secured for confirmed third-quarter deployment orders.

Cash and cash equivalents, however, declined to GH¢379,127 from GH¢1.09 million.

Total liabilities increased to GH¢8.48 million from GH¢7.61 million, while consolidated equity improved slightly to GH¢7.51 million from GH¢7.43 million.

Cash flow remains under pressure

Clydestone recorded net cash used in operating activities of GH¢509,706, compared with an inflow of GH¢2.49 million in the same period of 2025.

The negative cash flow was mainly due to increased inventories, higher trade receivables and a GH¢500,000 corporate tax payment.

The company ended June 2026 with a net cash and overdraft position of negative GH¢509,772.

This means investors may need to monitor how quickly Clydestone collects outstanding customer payments and converts its inventory into revenue.

Two confirmed orders expected to boost Q3

Clydestone said it has secured two hardware orders from banking sector clients, both scheduled for delivery and revenue recognition in the third quarter.

The first order includes cash dispensers, bulk deposit machines and cash recyclers. The equipment has already been secured in inventory.

The second order is also fully contracted and scheduled for third-quarter delivery.

Management expects the two contracts to make a material contribution to revenue and profit, making the third quarter significantly stronger than the first two quarters.

The company is also working on several proof-of-concept projects with banks that could develop into additional orders during the second half of 2026.

SusuCard to support consumer expansion

Clydestone is also developing SusuCard, a consumer payment platform expected to offer digital savings, insured savings circles, transport payments and international remittance services.

The platform is expected to include a UnionPay-branded virtual prepaid card for domestic and international online transactions.

Clydestone believes SusuCard could help it expand from serving mainly banks and financial institutions to providing payment services directly to consumers.

However, the commercial launch of the platform and its individual services will require approval from the Bank of Ghana.

Overall, Clydestone’s first-half performance shows weaker revenue and profit compared with 2025, but the company’s recurring services remained profitable and generated a strong margin.

The confirmed banking equipment orders, growth in card issuance and the planned launch of SusuCard could provide new growth opportunities during the second half of 2026. Clydestone trades on the Ghana Stock Exchange under the ticker CLYD.