ABUJA, NIGERIA — Briclinks Africa Plc, a telecommunications and internet service provider listed on the Nigerian Exchange Limited, saw its cash reserves fall below N4 million at the end of the second quarter of 2026, reflecting mounting liquidity pressures and aggressive debt service obligations .
According to the company’s Q2 2026 financial statements, cash and cash equivalents declined by 46.7 per cent from N3.98 million in the first quarter to N2.12 million by June 30 . The sharp decline was driven primarily by N32.08 million allocated toward principal loan repayments, which turned net cash movement negative for the three-month period .
The company’s balance sheet reveals a severely imbalanced capital structure. Non-current liabilities stood at N7.85 billion, comprising N7.22 billion in long-term facility debt and N628.87 million in directors’ current account obligations . This massive debt load contrasts sharply with total equity of just N127.17 million, leaving the company highly leveraged .
Operating overheads further squeezed cash flow during the quarter, with N11.73 million in asset depreciation, N5.57 million in administrative salaries, N4.24 million in vehicle logistics, and N3.77 million in power and electricity costs . Current liabilities rose to N9.80 million, driven by a jump in short-term bank borrowings from N5.84 million in Q1 to N8.76 million in Q2 .
With total current assets at N7.37 million, Briclinks Africa’s working capital ratio closed at a fragile 0.75, indicating that short-term liabilities exceed short-term liquid assets . The company’s total assets declined slightly to N7.99 billion from N8.01 billion in the first quarter, with intangible assets representing the largest component at N6.27 billion .
Despite the liquidity challenges, the company recorded improved earnings in the second quarter, with profit before tax rising 22.2 per cent to N17.52 million from N14.34 million in the preceding quarter . Briclinks Africa reported no tax provision for the quarter and said there was no post-balance-sheet event affecting the financial statements .
Briclinks Africa Plc, headquartered in Abuja and founded in 2015, continues its principal activity of providing internet services . The company’s financial position, however, remains precarious as it navigates the twin challenges of servicing substantial debt while managing day-to-day operational expenses .
