HORDS PLC recorded a strong turnaround in the first half of 2026, returning to profitability as revenue almost doubled compared with the same period last year.

According to the company’s unaudited financial statements for the six months ended June 30, 2026, revenue increased by 97.2% to GH¢5.18 million, up from GH¢2.63 million in the corresponding period of 2025.

The sharp increase in sales helped lift gross profit to GH¢923,209, representing growth of approximately 231% from the GH¢278,802 reported a year earlier.

HORDS’ gross profit margin consequently improved from 10.6% to 17.8%, suggesting that the company retained a larger portion of its revenue after accounting for the direct cost of producing its goods.

HORDS Returns to Profit

The company reported an operating profit of GH¢320,431 for the period, compared with an operating loss of GH¢66,233 in the first half of 2025.

After accounting for finance costs of GH¢8,829, profit before tax stood at GH¢311,603. This marked a significant turnaround from the GH¢66,233 pre-tax loss recorded during the same period last year.

HORDS ended the period with a net profit of GH¢233,702, compared with a net loss of GH¢66,233 in 2025.

The company’s net profit margin improved to 4.5%, while basic earnings per share moved from a loss of GH¢0.0006 per share to positive earnings of GH¢0.0020 per share.

The results were based on a weighted average of approximately 114.95 million ordinary shares.

Expenses Increased Alongside Business Growth

Although revenue and profitability improved, the company also recorded higher operating expenses.

Selling and distribution expenses increased to GH¢49,723 from GH¢20,322. Administrative expenses rose by 70.3% to GH¢553,055 from GH¢324,713.

Administrative costs included GH¢226,721 in staff costs, GH¢150,000 in directors’ remuneration and GH¢151,670 in other operating expenses.

The increase in expenses was, however, outweighed by the strong growth in revenue and gross profit, allowing HORDS to record an operating margin of approximately 6.2%, compared with a negative operating margin of 2.5% in the previous year.

Total Assets Rise to GH¢3.87 Million

HORDS’ total assets increased by 19.3% to GH¢3.87 million from GH¢3.24 million.

Current assets rose to GH¢2.42 million, mainly supported by higher inventory, receivables and investments.

Inventory increased by 60.5% to GH¢1.06 million from GH¢658,132. The inventory balance included GH¢703,813 in raw materials, GH¢300,000 in finished goods and GH¢52,628 in packaging materials.

Trade and other receivables also increased by 43.5% to GH¢465,588, while the company’s mutual fund investment stood at GH¢804,640.

Cash and cash equivalents rose to GH¢79,126 from GH¢50,924.

Liabilities and Loans Increase

Total liabilities increased by 37.6% to GH¢1.44 million from GH¢1.04 million.

Trade and other payables rose to GH¢1.10 million, while loans increased to GH¢217,761 from GH¢171,575.

The loans comprised GH¢32,355 owed to Ghana Growth Fund Company and GH¢185,406 classified as other advisory loans.

Despite the increase in liabilities, total equity improved to GH¢2.43 million from GH¢2.20 million, supported by the profit generated during the period.

Accumulated retained losses reduced from GH¢879,120 to GH¢645,418.

Operating Cash Flow Remains Negative

Despite reporting a profit, HORDS recorded a net operating cash outflow of GH¢33,536 during the first half of 2026.

The cash outflow was mainly influenced by a GH¢398,309 increase in inventory and a GH¢141,178 increase in receivables. These were partly offset by a GH¢346,533 increase in trade payables.

The company received GH¢46,186 from loans and recorded a GH¢15,551 net inflow from investing activities. Consequently, its total cash position increased by GH¢28,201 during the period, ending June with GH¢79,126.

Investor Takeaway

HORDS’ first-half results show a meaningful improvement in the company’s operating performance. Revenue nearly doubled, margins improved and the business moved from a loss to a net profit of GH¢233,702.

The stronger gross margin is particularly encouraging because it indicates that profitability grew faster than revenue.

However, investors may need to monitor the company’s cash flow closely. Although HORDS reported a profit, its operations continued to consume cash as more funds were tied up in inventory and receivables.

The increase in trade payables and loans also indicates that part of the company’s expansion was supported by additional liabilities.

Overall, the first-half results represent a positive turnaround for HORDS, but sustaining the recovery will depend on the company’s ability to convert its growing inventory and receivables into cash while controlling administrative expenses and borrowing.

The financial statements did not include a dividend declaration for the period.