Africa prudential reports 12% increase in profit to N380m

By Kayode Tokede

Africa prudential Plc has reported 12 per cent increase in Profit After Tax to N380 million in first quarter ended March 31, 2021 results, compared to N340million in first quarter ended March 31, 2020.

The company on the Nigerian Exchange Limited (NGX) on Friday also reported profit before tax of N480 million in Q1 2021 from N410 million reported in Q1 2020.

From the company’s income statement, Gross Earnings rose by 11 per cent to N830million, compared to N740million in reported in Q1 2020 while,  Revenue from contracts with customers also rose by 172 per cent to N36million, compared to N130 billion in Q1 2020

The company explained that, “During the period under review, Revenue from contracts with customers increased by 172per cent year-on-year on the back of a 975per cent increase in fees from corporate actions, 144 per cent growth in register maintenance and a 27 per cent increase in digital consultancy.”

Interest Income closed Q1 2021 at N470 million, compared to N610 million in Q1 2020, representing a decline.

From the Balance Sheet, Africa prudential’s total Assets as at March 31, 2021 was at N31.12billion, 75.6 per cent increase compared to N17.73 billion as at year ended December 31, 2020.

According to the company, “In the first quarter of 2021, the total assets increased 75.6per cent on the back of 1,243 per cent surge in cash and cash equivalents as well as a 168 per cent increase in trade receivables.

“The company total liabilities increased by 150 per cent Year-till-date driven by a 160per cent increase in customers’ deposits which accounted for about 96 per cent of the company’s liabilities.

“The shareholder’s wealth declined by eight per cent due to the nine per cent decline in retained earnings due to dividend paid by the company during the period.”

The Board of Directors of Africa Prudential had proposed a sum of N1 billion as dividend to shareholders for the period ended December 31, 2020.

The firm’s secretary, Joseph Jibunoh in a  notification, said  the proposed dividend will be paid electronically to qualified shareholders on the 26th of March, 2021, subject to appropriate withholding tax and approval from the company’s Annual General Meeting (AGM) scheduled a day earlier.

The breakdown of the proposed dividend shows that a sum of 50 kobo will be paid for each outstanding 2,000,000,000 ordinary shares of the company, held by its shareholders, totalling N1 billion. The proposed dividend is 28.6per cent lower than the 2019 figures of N1.4 billion.

The comparative decline in the company’s proposed dividend for the year might be attributed to a recent dip in profit and other key metrics recorded by the firm in its latest audited financial statement for 2020. For example, the firm posted a profit of N1.45 billion for the year, indicating a decline of 13.98 per cent YoY. In addition, its earnings per share declined by 14.29 per cent to print at 72 kobo.

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