By Aduragbemi Omiyale
Shareholders have applauded the board and management of Central Securities Clearing System (CSCS) Plc for the company’s unprecedented performance in the 2020 financial year.
On Tuesday, May 18, 2021, the shareholders gathered for the 27th Annual General Meeting (AGM) of the firm held at the Idera Hall of the Raddison Blu Hotel, Victoria Island, Lagos whilst observing social distancing protocols and hygiene, as advised by relevant authorities in respect of the COVID-19 precautions.
One of them, Mr Eric Idiahi, the Managing Director of Verod Capital, a core shareholder, said he was impressed because the firm weathered the storm in such a challenging year.
He reiterated the support of shareholders for the company, especially as the diversification of the business and culture of innovation should enhance the sustainability of the business and ensure its capacity to deliver superior returns to shareholders over the long term.
Others also praised the board and the management for their efforts, noting that increasing the dividend payout by 36.0 per cent in the year was a step in the right direction.
Business Post reports that the board proposed the payment of N5.85 billion, amounting to N1.17 per share, compared with the N4.3 billion paid in the 2019 fiscal year, amounting to 86 kobo per share.
This recommended cash reward was approved by the shareholders and paid by the registrar, Africa Prudential Plc, to all qualifying shareholders who held the shares at the close of business on Monday, May 10, 2021.
While addressing the shareholders at the meeting, the Chairman of CSCS, Mr Oscar Onyema said, “Despite the challenges in 2020, CSCS emerged stronger, delivering outstanding growth in top and bottom lines, and executing far-reaching initiatives that would sustainably strengthen the competitiveness and resilience of the business.”
“Growing profit by over 41 per cent in such a challenging year to deliver 20.3 per cent return on average equity, the board of directors is more than ever upbeat on the value-accretive prospects of CSCS.
“More importantly, we are enthusiastic about the progress made thus far in repositioning the business to efficiently play a more active and leading role in deepening the Nigerian capital market.
“With continuous investments in new technologies, talent, and work environment, we expect productivity to grow, as the Board continues to work with the management to exceed stakeholders’ expectations,” he added.
On his part, the Managing Director/Chief Executive Officer of CSCS, Mr Haruna Jalo-Waziri, said, “These impressive results reflect our enhanced collaboration with different stakeholders and their unflinching support and loyalty to CSCS, as the core infrastructure for the Nigerian capital market.
“Hence, my colleagues and I are excited to dedicate this performance to our esteemed participants, regulator and the board of directors, whose support kept us stronger through the pandemic.”
“We would continue to invest in our collective objective of deepening the capital market and broader financial system, even as we seek new and efficient ways of enhancing our partnerships for mutual prosperity,” he assured.
“Having laid a solid foundation over the past three years, we are more than ever-optimistic on the prospect of our business, especially as we diversify the business for enhanced resilience against macro and market volatilities.
“The years ahead look challenging, albeit more promising than ever, as we reinforce our commitment to leveraging best-in-class technologies and our continuous investments in human capital in delivering value to all stakeholders,” Mr Jalo-Waziri further informed the shareholders.
Shares of CSCS are traded over-the-counter through the NASD over-the-counter (OTC) Securities Exchange, the premier market for trading unquoted securities of public limited companies.
The company boasts of a diversified shareholder base, including the Nigerian Exchange (NGX) Group, some of the largest Nigerian banks, private equity firms, other institutional investors and retail investors.
