Daakye Trust sees increase in assets despite decline in cash reserves
Daakye Trust Limited has reported its financial results for the year ended December 31, 2022, with an increase in total assets despite a decline in cash and cash equivalents.
The company’s total assets increased from GHS 2.5bn in the same period of 2021 to GHS 2.7bn in 2022. This increase was primarily due to a hike in GETFund receivables from GHS 921m to GHS 1.2bn during the review period. GETFund is a government agency that provides funding for educational infrastructure in Ghana. Daakye Trust Limited specializes in issuing debt securities to refinance liabilities of GETFund to relevant contractors and banks, making the hike in GETFund receivables a positive development for the company.
However, the company’s cash and cash equivalents declined from GHS 696m to GHS 393m within the review period, which could be a cause for concern for investors.
This decline could be attributed to increased expenses or changes in the company’s investment strategy. Nevertheless, the company’s liabilities declined from GHS 119m to GHS 112m, indicating a positive trend for the company’s financial health.
Furthermore, the total comprehensive income of the company within the review period decreased from GHS 14.2m to GHS 12.3m. This decline in income could be attributed to various factors such as changes in market conditions, increased competition, or increased expenses.
Nonetheless, the company’s financial position remains relatively stable, given its growth in total assets and decline in liabilities.
Daakye Trust Limited’s financial performance reflects the overall economic conditions in Ghana, which have been affected by the COVID-19 pandemic. The pandemic has caused disruptions in various industries, including education, which could impact the operations of GETFund and, in turn, Daakye Trust Limited.
Despite these challenges, the company has remained resilient and has continued to pursue its mission of providing financing solutions to the educational sector in Ghana.
Overall, Daakye Trust Limited’s financial results for the year ended December 31, 2022, demonstrate its commitment to providing financing solutions to the educational sector in Ghana while maintaining a relatively stable financial position despite economic challenges. The company’s ability to adapt to changing market conditions will be critical to its long-term success.
