By Adedapo Adesanya
The NASD Plc said it generated a total of N139 million as transaction fees in the 2019 financial year, lower than the N169 million raked in 2018.
This information was contained in the company’s annual report and financial statements for the period ended December 31, 2019.
An analysis of the company’s results by Business Post showed that the macroeconomic challenges had a huge effect on NASD in the accounting year.
This resulted in the 100.4 percent decline in the profit after tax of the coy for the 2019 financial year to N45.01 million from N90.4 million in the prior year.
In addition, NASD Plc further disclosed that its profit before tax went down by 41.9 percent to N36.1 million from the N62 million of the previous year.
Also, during the period under review, the exchange said the total market turnover dropped by 65.8 percent to N10.5 billion from N30.7 billion in the previous year, while the revenue generated by the firm went down by 3 percent to N162 million from N167 million earned in 2018.
It explained that the decrease in market activity experienced in 2019 was a sharp change in trend from what was witnessed in 2018 and was a direct result of a downturn in market activity as well as a reduction in the number of new securities admitted to the market.
The continued decline in the country’s risk profile coupled with the sustained dominance of the fixed income sector of the market also contributed to investor apathy, the coy said.
Despite the problems, the company recorded a 13.5 percent increase in investment income, which closed at N65.5 million compared with the N57.7 million recorded in 2018.
The first over-the-counter bourse in the country said it generated listing fees of N2.62 million, while total expenses amounted to N196.7 million compared to the N163 million recorded in the corresponding period of 2018.
The company said it recorded an operating loss of N30.6 million compared to an operating profit of N4.3 million recorded in the year 2018.
Total assets rose during the period under review by 7 percent to N660.8 million from N617.9 million, while total liabilities dropped 9.1 percent to 19.9 million from N21.9 million in 2018.
In terms of overall market activity, the overall NASD Securities Index (NSI) depreciated by 5.49 percent between January 2019 and December 2019, while the market capitalisation declined by 2.6 percent from N514.77 billion in January 2019 to N501.14 billion as of December 31, 2019.
Speaking on the outlook for the market, Chairman of NASD Plc, Mr Olutola Mobolurin, said, “The early passage of the 2020 budget promised to create a more enabling environment for economic growth.
“The coronavirus pandemic, however, has created a total disruption of global trade, capital flows and universal business practices.
“As the global business becomes less physically driven and more digital–human remote, we see an opportunity for us to exploit our nimbleness and unique position as an over-the-counter securities exchange.
“Fortuitously, in 2019 NASD had reassessed the company’s strategy and redefined its focus to facilitate it, becoming the hub of first call for capital formation in West Africa.
“We are expanding our product offerings and services to cater to the new business and capital raising environment. We have embarked on a material technology overhaul that will improve our scope, efficiency and effectiveness as an over-the-counter market.
“We shall continue to deliver our objectives to all stakeholders in NASD Plc,” he said.
The 7th Annual General Meeting (AGM) of NASD PLC will hold on Thursday, June 25 at NASD Plc, 9th Floor, UBA House, 57 Marina, Lagos at 11.00am.
Meanwhile, the board of directors of the company declared no dividend payment to shareholders for the year.
Dipo Olowookere