DataPro, the technology-driven credit rating agency (CRA) has affirmed SKLD Integrated Services Limited’s long-term rating of “BBB+” with a stable outlook for the year 2022/2023.

In a statement by Kehinde Rasheed, Client Services Manager of DataPro, said, “The rating reflects DataPro’s view of the company’s financial resilience following its recovery from the COVID-19 driven revenue decline in the year 2020.

According to Rasheed, “In the year under review, revenue grew its highest in five years, SKLD’s financial resilience is evident in maintenance of financial metrics consistent with a good financial risk profile, despite experiencing some softening in demands from effects of the pandemic.

“The company’s effort to expand its operations was also recognised. This was reflected in the surge in the company’s cost profile and increase in capital base.

“During the year, the company moved to convert its Ordinary Shares to Preference Shares leading to a rise in share capital from N10m (Yr. 20) to N777m (Yr. 21).

“The positive rating action reflects DataPro’s opinion of SKLD’s stable management, diversified earning profile and strong brand presence.

“BBB+” indicates slight risk. It shows fair financial strength, operating performance and business profile when compared to the standard established by DataPro. This company, in our opinion, has the ability to meet its ongoing obligations, but its financial strength is vulnerable to adverse changes in economic conditions.

“The short-term rating of “A1” assigned indicates good credit quality and satisfactory capacity for timely payment of financial commitments.

“DataPro notes that the rating carries a maximum shelf life of 12 calendar months, in line with international best practices. The rating is therefore, not an offer to trade in securities nor a substitute for the user’s judgement. It is meant for reference purposes,” Rasheed stated.