INITIATES : AUDITED FINANCIAL STATEMENT FOR 2023

2023

THE INITIATES PLC AUDITED ACCOUNT

FOR YEAR ENDED 31ST DECEMBER 2023

EXTERNAL AUDITORS

MADU ONYEKWANA & Co

12/31/2023

THE INITIATES PLC

FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023

THE INITIATES PLC

FOR THE YEAR ENDED 31 DECEMBER 2023

CONTENTS	PAGE
PRELIMINARY REPORT OF THE COMPANY	i - ix
STATEMENT OF DIRECTORS' RESPONSIBILITIES	1
CORPORATE INFORMATION	2
REPORT OF INDEPENDENT AUDITORS	3 - 5
STATEMENT OF PROFIT OR LOSS AND	6
OTHER COMPREHENSIVE INCOME
STATEMENT OF FINANCIAL POSITION	7
STATEMENT OF CHANGES IN EQUITY	8
STATEMENT OF CASH FLOWS	9 - 10
NOTES TO THE FINANCIAL STATEMENTS	11 - 55

OTHER NATIONAL DISCLOSURES

56 - 57

WASTE MANAGERS & INDUSTRIAL CLEANERS

THE INITIATES PLC

RC266755

REPORT OF THE DIRECTORS

The Directors have the pleasure of submitting to the members their report as well as the Audited Financial Statement for the year ended 31st December, 2023.

1. Legal Form: The Company was incorporated as a Private Limited Liability Company under the Laws of the Federation of Nigeria on the 3rd day of March,1995 with RC 266755.It became a Public limited Company on the 24th day of June,2015, and was Listed on the floor of the Nigerian Stock Exchange(NSE) on the 25th day of October, 2016.
2. Principal Activities: The Company is engaged in Waste Management, and Industrial Cleaning Services to both private and public sectors including the Oil and Gas Industry.

3. Result of Operations for the year:

ITEM	DEC 31ST 2023	DEC 31ST 2022	CHANGE
	N'M	N'M	%
REVENUE	1,849.47	841.47	119.79
DIRECT COST	1,171.53	641.99	82.48
GROSS PROFIT	677.94	199.48	239.86
OTHER INCOME	147.85	17.45	747.43
TOTAL INDIRECT COST	306.02	260.30	17.57
PROFIT BEFORE TAX	519.77	(43.37)	(1,298.42)
PROVISION FOR TAX	171.55	10.33	1,560.49
NET PROFIT AFTER TAX	348.23	(53.70)	(748.44)
NON-CURRENT ASSET	1,531.13	1,140.20	34.29
ASSET IN TRANSIT	120.59	265.06	(54.50)
OTHER NON-CURRENT ASSET	17.91	31.22	(42.64)
INVESTMENT	105.26	105.14	0.11
CURRENT ASSET	784.88	548.40	43.12
TOTAL ASSET	2,559.77	2,090.02	22.48
NON CURRENT LIABILITY	672.13	782.52	(14.11)
CURRENT LIABILITY	709.42	594.63	19.30
WORKING CAPITAL	75.46	(46.24)	(263.21)
NET ASSET	1,178.23	712.86	65.28

1. Property, Plant & Equipment: Movements in plant, property and equipment during the year are as reflected in notes 15 of the notes to the financial statement
2. Directors: The names of Directors who held office during the period and at the date of this
   report are : Mr.Joe Ogbonna Anosikeh (Chairman), Mr.Reuben Mustapha Ossai (Managing Director/C.E.O) Prof.Edward Alikor (Non-Executive Director), Chief Oboh-Ozoherebe .G. (Non-Executive Director), Mr.Joseph Ebinum (Non-Executive Director) and Dr. Dorothy

Bassey (Independent Non-Executive Director)

	ANOSIKEH, J. O. (CHAIRMAN), OSSAI, R.M (CEO/ MD)		Plot 400, Location (New) Road
	OBOH- OZOHEREBE G. (N.E.D)	Off Aba/PH Express Rd, By Oyigbo Junction Umuebule 5
	PROF. ALIKOR, E.A.D (N.E.D)		(502103)
	EBINUM, J. (N.E.D)			P.O. Box 7242
	DR. BASSEY, DOROTHY (I.N.E.D)		Port Harcourt
	Phone [phone]	www.initiatesgroup.com	EMAIL:[e-mail]

WASTE MANAGERS & INDUSTRIAL CLEANERS

THE INITIATES PLC

RC266755

Directors Remuneration:

Non-Executive Directors remuneration comprises Directors fees, Sitting allowances and travel allowances; while Executive Director remuneration comprise salaries and other allowances payable during the year.

6. Directors' interest in shares: In accordance with section 301 of the Companies and Allied Matters Act,(CAMA) 2020 and the Listing requirement of the NSE, the direct and Indirect interest of the Directors' shareholding as advised by the Registrars of the Company are;

Year		Names of Directors	Direct	Indirect
						Shareholding	Shareholding
31st Dec,		Mr.Joe Ogbonna Anosikeh	20,295,796
2022
				Mr.Reuben Mustapha Ossai			190,695,237
				Chief Charles Oboh	1,000,000
				Prof.Edward Alikor			1,126,761
				Mr.Joseph Ebinum		NIL	37,550,000
	31st Dec,			Mr.Joe Ogbonna Anosikeh			20,295,796
	2023
			Mr.Reuben Mustapha Ossai	190,695,237
				Chief Oboh-Ozoherebe.G.			58,568,412
				Prof.Edward Alikor	1,126,761
				Mr.Joseph Ebinum			NIL		37,550,000
20th March		Mr.Joe Ogbonna Anosikeh			20,295,796
2024
		Mr.Reuben Mustapha Ossai	190,695,237
				Chief Oboh-Ozoherebe.G.			58,568,412
				Prof.Edward Alikor	1,126,761
				Mr.Joseph Ebinum			NIL		37,550,000

Note: The Company represented by Director with indirect shareholding is: BELL IYKE LIMITED

	ANOSIKEH, J. O. (CHAIRMAN), OSSAI, R.M (CEO/ MD)		Plot 400, Location (New) Road
	OBOH- OZOHEREBE G. (N.E.D)	Off Aba/PH Express Rd, By Oyigbo Junction Umuebule 5
	PROF. ALIKOR, E.A.D (N.E.D)		(502103)
	EBINUM, J. (N.E.D)			P.O. Box 7242
	DR. BASSEY, DOROTHY (I.N.E.D)		Port Harcourt
	Phone [phone]	www.initiatesgroup.com	EMAIL:[e-mail]

	THE INITIATES PLC
WASTE MANAGERS & INDUSTRIAL CLEANERS	RC266755

7. Directors' interest in Contracts: In line with the provision of section 303 of CAMA 2020, no Director has any interest (directly/indirectly) in any contract or proposed contract with the Company as at 31st December,2023 or the date of this return.

8. Analysis of Shareholding: The shares of the Company were fully owned by Nigerian citizens and Institutions. The following shareholders held more than 5% of the shares of the Company as at 31st December, 2023:

THE INITIATES PLC

LIST OF SHAREHOLDERS WITH 5% AND ABOVE

S/N	NAME	HOLDINGS	%
1	DVCF OIL & GAS PLC	218,441,000	24.54
2	OSSAI REUBEN M	190,695,237	21.43
3	AFOLAYAN SAMUEL OLAJIDE	102,552,084	11.52
4	OBOH-OZOHEREBE GORDON	58,568,412	6.58
		570,256,733	64.08

1. Fraud/Forgery: There was no forgery recorded during the year under review.
2. Format of Financial Statement: The financial statement of The Initiates Plc have been prepared in accordance with the Financial reporting council of Nigeria as well as the International Financial Reporting Standards.
3. Employment and Employee:

Employee welfare: The Company places high premium on the health, safety and welfare of its employees in their places of work. To this end, the Company has various forms of insurance policies including group life insurance to adequately secure and protect its employees. The Company also provides allowances to its employees at all levels for feeding, transport and housing. Equal opportunities are also given during a highly competitive recruitment process and there is no discrimination on gender, race or tribe.

12. Free Float: The Free float of a company is the proportion of its shares that are held by investors who are likely to be willing to trade the shares on the Securities Exchanges. In line with the Nigerian Stock

Exchange's rules, the Company's free float as at 31st December, 2023 is above 20% as shown below:

	ANOSIKEH, J. O. (CHAIRMAN), OSSAI, R.M (CEO/ MD)		Plot 400, Location (New) Road
	OBOH- OZOHEREBE G. (N.E.D)	Off Aba/PH Express Rd, By Oyigbo Junction Umuebule 5
	PROF. ALIKOR, E.A.D (N.E.D)		(502103)
	EBINUM, J. (N.E.D)			P.O. Box 7242
	DR. BASSEY, DOROTHY (I.N.E.D)		Port Harcourt
	Phone [phone]	www.initiatesgroup.com	EMAIL:[e-mail]

WASTE MANAGERS & INDUSTRIAL CLEANERS

THE INITIATES PLC

RC266755

THE INITIATES PLC
SHAREHOLDING STRUCTURE AND FREE FLOAT STATUS
AS AT THE PERIOD ENDED 31ST DECEMBER 2023
COMPANY NAME:	THE INITIATES PLC.
BOARD LISTED:	GROWTH BOARD
YEAR END:	31ST DECEMBER
REPORTING PERIOD	2023 THIRD QUATER (1ST OCTOBER - 31ST DECEMBER 2023)
SHARE PRICE AS AT REPORTING DATE:	N1.15 (2022: N0.40)
		2023			2022
DESCRIPTION	UNITS	PERCENTAGE (IN RELATION TO		UNITS	PERCENTAGE (IN RELATION TO
	ISSUED SHARE CAPITAL) %		ISSUED SHARE CAPITAL) %
Issued Share Capital @ 50 Kobo per share	889,981,552	100%		889,981,552	100%
Details of Substantial Shareholdings (5% and above)
DVCF OIL & GAS PLC	218,441,000	24.54		322,828,822	36.27
OSSAI REUBEN M	190,695,237	21.43		190,695,237	21.43
AFOLAYAN SAMUEL	102,552,084	11.52		73,546,061	8.26
OBOH-OZOHEREBE GORDON	58,568,412	6.58
Total Substantial Shareholdings	570,256,733	64.08		587,070,120	72.55
Details of Directors Shareholdings (direct and indirect), excluding directors' holding substantial interests
ANOSIKEH JOE OGBONNA	20,295,796	2.28		20,295,796	2.28
ALIKOR ACHI EDWARD	1,126,761	0.13		1,126,761	0.13
EBINUM JOESEPH ( INDIRECT - BELL IYKE LIMITED)	37,550,000	4.22		37,550,000	4.22
OBOH CHARLES AROAWODE	-	-		1,000,000	0.11
Total Directors' Shareholdings	58,972,557	6.63		59,972,557	6.74
Details of Other Influential shareholdings, if any (E.g. Government, Promoters)
EMPLOYEES	5,432,282	0.61		5,432,282	0.61
Total of Other Influential Shareholdings	5,432,282	0.61		5,432,282	0.61
Free Float in Unit and Percentage	255,319,980	28.69		237,506,593	26.69
Free Float in Value	₦	293,617,977.00	₦		95,002,637.20

1. THE INITIATES Plc with a free float percentage of 28.69% as at 31st December 2023, is compliant with The Exchange's free float requirements for companies listed on the GROWTH Board.
2. THE INITIATES Plc with a free float Value of N293,617,977.00 as at 31st December 2023, is compliant with The Exchange's free float requirements for companies listed on the GROWTH Board.

13. Auditors: The Auditors, Messer's Mau, Onyekwena & co. indicated their willingness to continue in office in accordance with section 401(1) & (2) of the Companies and Allied Matters Act, Cap C20, Laws of the Federation of Nigeria 2004.

Dated this 20th Day of March, 2024

By Order of the Board

OLAIDE ODEJOBI

Company Secretary

FRC/2017/PRO/NBA/002/00000016739

	ANOSIKEH, J. O. (CHAIRMAN), OSSAI, R.M (CEO/ MD)		Plot 400, Location (New) Road
	OBOH- OZOHEREBE G. (N.E.D)	Off Aba/PH Express Rd, By Oyigbo Junction Umuebule 5
	PROF. ALIKOR, E.A.D (N.E.D)		(502103)
	EBINUM, J. (N.E.D)			P.O. Box 7242
	DR. BASSEY, DOROTHY (I.N.E.D)		Port Harcourt
	Phone [phone]	www.initiatesgroup.com	EMAIL:[e-mail]

WASTE MANAGERS & INDUSTRIAL CLEANERS

THE INITIATES PLC

RC266755

CORPORATE GOVERNANCE REPORT

The Initiates Plc. recognizes Corporate Governance as its bedrock in the attainment of the Company's goals and objectives especially as it relates to sound environmental protection, acceptable corporate social responsibility and compliance with statutory regulation. The Company continuously thrives in achieving best practices in accordance with the laws and regulations of Nigeria such as the Code of Corporate Governance for Public Companies2011, the Companies and Allied Matters Act Capc20, LFN2004, Post listing rules of the Nigerian Stock Exchange, International Financial Reporting Standard etc.

In achieving these, the Board of Directors is responsible for the following:

1. Develop a strategy defining the role of the Directors in the overall attainment and achievement of the Company's goals in line with TIP's vision and Business values.
2. Maintain proper fiscal values by ensuring the integrity of financial statements, monitor spending
3. Select, Manage and support the Chief Executive Officer in the formulation of policies and the conduct of Business
4. Oversee the effectiveness and adequacy of Internal Control System
5. Set up Employment procedures as it relates to Management staff
6. Ensure compliance with Laws and regulations
7. Ensure compliance with Board Charters
8. Ensure effective communication with Shareholders
9. Formulate the Management of Risk management framework

The Board exercises its oversight functions through Board Meetings and its Committees. As at the date of this report, the Committees of the Board are:

Committee(Audit &Finance)	Membership Status
Christian Ugochukwu Nwanma	Shareholder/Chairman
Mr.Enoch Iwueze	Shareholder/member
Mr.Olushola Adegbite	Shareholder/member
Prof.Edward Alikor	Director/member
Mr.Joe Ebinum	Director/member

	ANOSIKEH, J. O. (CHAIRMAN), OSSAI, R.M (CEO/ MD)		Plot 400, Location (New) Road
	OBOH- OZOHEREBE G. (N.E.D)	Off Aba/PH Express Rd, By Oyigbo Junction Umuebule 5
	PROF. ALIKOR, E.A.D (N.E.D)		(502103)
	EBINUM, J. (N.E.D)			P.O. Box 7242
	DR. BASSEY, DOROTHY (I.N.E.D)		Port Harcourt
	Phone [phone]	www.initiatesgroup.com	EMAIL:[e-mail]

		THE INITIATES PLC
WASTE MANAGERS & INDUSTRIAL CLEANERS	RC266755
	Committee(Corporate Governance/Compensation)	Membership Status
	Oboh-Ozoherebe .G.	Chairman/ N.E.D
	Mr.Joe Ebinum	N.E.D./Member
	Prof.Edward Alikor	N.E.D/ Member
	Committee(Risk and HSE)	Membership Status
	Prof.Edward Alikor	Chairman/N.E.D
	Ossai, Reuben Mustapha	Member

Statutory Audit Committee: The Committee held four meetings during the year(28/3/23, 26/4/23, 11/7/23,and/24/10/2023;) to perform its roles and responsibilities as stated in section 404(7) of CAMA,2020 and the SEC Code of Corporate Governance(2011)

THE BOARD OF DIRECTORS

During the year under review, the Board of Directors was made up of 6 directors comprising a Chairman, a Chief Executive Officer, (3) Non-executive Director, and an independent Director. The position of the Chairman is distinct from that of the Chief Executive officer to ensure transparency and separation of power as provided in the Code of Corporate Governance for Public Companies, 2011. The Board held four meetings during the year (29th March 2023; 27th April 2023; 12th July 2023, and 25th October 2023)

ATTENDANCE AT BOARD AND AUDIT COMMITTEE MEETINGS:

NamesBoard Sittings (4 sittings)Audit CommitteeSitting (4 Sittings)

Reuben Mustapha Ossai4Not applicable(N/A)

______________________________________________________________________________

Joe Ogbonna Anosikeh4N/A

_______________________________________________________________________________

Chief Oboh-Ozoherebe. G.1N/A

_______________________________________________________________________________

Prof.Edward Alikor

3

3

_______________________________________________________________________________

	ANOSIKEH, J. O. (CHAIRMAN), OSSAI, R.M (CEO/ MD)		Plot 400, Location (New) Road
	OBOH- OZOHEREBE G. (N.E.D)	Off Aba/PH Express Rd, By Oyigbo Junction Umuebule 5
	PROF. ALIKOR, E.A.D (N.E.D)		(502103)
	EBINUM, J. (N.E.D)			P.O. Box 7242
	DR. BASSEY, DOROTHY (I.N.E.D)		Port Harcourt
	Phone [phone]	www.initiatesgroup.com	EMAIL:[e-mail]

WASTE MANAGERS & INDUSTRIAL CLEANERS

THE INITIATES PLC

RC266755

Mr.Joe Ebinum

4

4

_______________________________________________________________________________

		Dr.Dorothy Bassey	4	N/A
		Christian Ugochukwu Nwanma	N/A	4
		Mr.Enoch Iwueze	N/A	4
		Olushola Adegbite	N/A	4

	ANOSIKEH, J. O. (CHAIRMAN), OSSAI, R.M (CEO/ MD)		Plot 400, Location (New) Road
	OBOH- OZOHEREBE G. (N.E.D)	Off Aba/PH Express Rd, By Oyigbo Junction Umuebule 5
	PROF. ALIKOR, E.A.D (N.E.D)		(502103)
	EBINUM, J. (N.E.D)			P.O. Box 7242
	DR. BASSEY, DOROTHY (I.N.E.D)		Port Harcourt
	Phone [phone]	www.initiatesgroup.com	EMAIL:[e-mail]