NGX Group records N700m profit before tax in half year 2023

Nigerian Exchange Group Plc (NGX Group) on Friday said it recorded a profit before tax of 700 million in its unaudited results for the half year ended June 30.

Mr Oscar Onyema, the Group Managing Director/Chief Executive Officer of NGX Group, said in a statement made available on Friday in Lagos that the group demonstrated resilience by the result.

Onyema said that the group’s half-year financial results for the ongoing year reflects the impact of economic headwinds.

He said with market friendly pronouncements, already made by the new government, trading and listing activities would continue the positive impact experienced in June.

“Consistent with our strategic objective to maximise shareholder value, the Board of Directors has consented to an interim dividend of 25k per ordinary share of 50k, which translates to a total payout of N495.53 million.

“This initiative underscores better flow through of dividend from an associate company and first-time dividend payment from our flagship subsidiary.

“It also emphasises our continued commitment to working collaboratively with our shareholders and other stakeholders in creating and distributing value, even in challenging market conditions,” he said.

According to him, the group’s gross earnings recorded a decrease of 12.5 per cent to N3.70 billion from N4.22 billion as of June 2022.

Onyema said that other income increased by 24.9 per cent to N490 million from N393 million in the same period.

Onyema said that the NGX group’s revenue decreased by 16.3 per cent to N3.2 billion in June from N3.82 billion recorded in June 2022.

He noted that the record was driven by 14.6 per cent decline in treasury investment income, which is 27.1 per cent of revenue to N869 million in June.

The managing director noted that the record was relative to N1.02 million in the comparative period in 2022, primarily driven by a comparative reduction in its treasury holdings year-over-year.

Onyema said the group’s transaction fees recorded 21.2 per cent decline, which is 57.2 per cent of revenue to N1.83 million in June from N2.32 million recorded in June 2022, due to a drop in trading activities in the Exchange

He stated that the group recorded 6.7 per cent increase in listing fees, which is 12.1 per cent of revenue to N388.1 million in June from N363.8 million in June 2022.

According to him, the increase was buoyed by improved listing on the Exchange in the first half of the year, which was relative to the first half of 2022.

Onyema said, the group’s rental income, which is 2.2 per cent of revenue earned from NGX Real Estate lease of office floor spaces recorded 38.6 per cent increase from N51.8 million in June 2022 to N71.7 million as of June.

He said that the group recorded 39.5 per cent decline in other fees, indicating 1.3 per cent of its revenue to N42.1 million in June from N69.7 million in June 2022.

According to him, this represents rental income from the trading floor, annual charges from brokers, dealing license, and membership fees earned by the group.

The managing director stated that the group recorded 33.3 per cent decline in operating profit of N1.08 million in June from N1.61 million in June 2022, as a result of the 16.3 per cent decline in revenue year-on-year.

“Profit before income tax declined by 40.6 per cent to N726 million in June from N1.22 million in the corresponding period of 2022, due to a reduction in the top line year-on-year.

“Profit after income tax declined by 45.9 per cent to N444.1 million from N820.2 million. This also resulted in a decline in profit after tax margin to 12.03 per cent from 19.45 per cent recorded in June 2022.

“Total assets decreased by 3.7 per cent to N54.94 billion from N57.06 billion in December2022, driven primarily by 33.1 per cent decline in trade and other receivables to N712.86 million from N1.07 million in December 2022.

“Also, moderated by a 5.31 per cent growth in cash and cash equivalent to N5 billion from N4.75 billion in December 2022,” he said.

According to him, the group’s total liabilities saw 12.3 per cent reduction, falling from N20.3 billion in December 2022 to N17.8 billion.

Onyema explained that the decrease was primarily due to the repayment of a term loan that was used to finance investments in selected associates.