Economy
Africa Prudential Reports 7% Drop in H1 2020 Earnings
By Adedapo Adesanya
The gross earnings of Africa Prudential Plc dropped 7 per cent in the first six months of the year to N1.87 billion from N2.01 billion in the same period of 2019.
The company noted in its unaudited financial statements for the half-year ended June 30, 2020, the weak performance came on the premise of the COVID-19 pandemic, which it claimed wiped out as many contributions from its retainer fees, which contributes over 60 per cent of revenues from contracts with customers.
According to details contained in the documents, revenue from contract with customers, one of its major business segments, went down by 32 per cent year-on-year.
However, the company’s Profit After Tax (PAT) rose by 4.9 per cent during the period under review to N1.08 billion from N1.03 billion in H1 2019.
The registrar of some publicly listed firms said businesses that engage in contract of services on retainership basis were badly affected by the pandemic as a lack of business activities means services were cut by clients in line with business continuity initiatives.
During the period under review, revenue from contracts with customers contracted by 32.12 per cent year-on-year on the back of the effect of COVID-19 on the business landscape. This led to a 100 per cent drop in retainer fee in the first half of the year.”
However, the company said it was able to increase fees from corporate actions by 34.9 per cent, register maintenance by 32.8 per cent and digital consultancy by 94.3 per cent year-on-year.
Also, a quarter-on-quarter analysis showed that the company has been able to improve revenue from fees from corporate actions by 1791.9 per cent and register maintenance by 171.4 per cent.
Despite the drop in revenues from contracts year on year, the registrar did better quarter-on-quarter, rising by 249 per cent to N490 million in revenue from contracts, majority of which it said came in the second quarter of the year.
Africa Prudential reported a half-year earnings per share of 54 kobo compared to 51 kobo same period in 2019.
Speaking on the performance, the company’s Managing Director, Mr Obong Idion said, “Our Q1 results showed the impact of the pandemic on our business.
“However, we have been able to put in place structures to help us maximize the current business cycle.
“Through this structure we were able to achieve an impressive quarter-on-quarter results, increasing gross earnings by 52 per cent and PAT by 144 per cent.
“We were also able to deliver an improved result year-on-year, growing interest income and PAT by 12 per cent and 5 per cent respectively.
“As the company continues to observe safety measures to ensure the safety of staff and customers, we have enhanced our virtual channels to meet the needs of our various categories of customers while reducing the need for physical visits significantly,” he added.
On the impact of the COVID-19, the company has put in place appropriate measures to respond to the global COVID-19 pandemic.
In line with the directives from the government to curtail the spread of the virus, the company activated its business continuity plan and also a ‘Work from Home’ plan thus, providing the necessary tools to employees to enable them to work effectively.
Africa Prudential added that it was assessing the impact of COVID-19 on its earnings, liquidity, capital, employee, customers and other stakeholders.
By Modupe Gbadeyanka
The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.
In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.
A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.
To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”
“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.
It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”
“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.
“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.
“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.
“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.
By Adedapo Adesanya
Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.
The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.
Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.
Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.
Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.
The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.
By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.
In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.
By Dipo Olowookere
It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.
The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.
Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.
Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.
At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.
This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.
VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.
In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn