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CSCS Unprecedented Performance Excites Shareholders

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CSCS Unprecedented Performance

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.

Aduragbemi Omiyale is a journalist with Business Post Nigeria, who has passion for news writing. In her leisure time, she loves to read.

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Economy

FG to Make TIN Compulsory for Bank Account Holders

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Africa's Tax Revenue

By Modupe Gbadeyanka

From 2022, bank account holders in Nigeria will likely have to obtain a tax identification number (TIN) to operate as the Finance Bill sent to the National Assembly by President Muhammadu Buhari is planning to make it mandatory.

This move, according to observers, is to expand the tax net of the country in the midst of shrinking revenue and make the Federal Inland Revenue Service (FIRS) pay tax to the government.

In his lead debate on Wednesday, the Senate Leader, Mr Yahaya Abdullahi, said the bill, when passed and signed, will make financial institutions request for TIN from customers for them to operate new and existing accounts.

“Banks will be required to request for Tax Identification Number before opening bank accounts for individuals while existing account holders must provide their TIN to continue operating their accounts,” he disclosed.

According to him, “Going forward, we hope that changes to the tax laws will be on an annual basis to ensure that Nigeria’s tax system continues to evolve in line with economic conditions.”

The lawmaker further said the bill intends to make it an offence to refuse to deduct tax.

“This penalty is 10 per cent of the tax not deducted, plus interest at the prevailing monetary policy rate of the Central Bank of Nigeria (CBN).

“The conditions attached to tax exemption on gratuities have been removed. Therefore gratuities are unconditionally tax exempt.

“The duties currently performed by the Joint Tax Board as relates to administering the Personal Income Tax Act will now be performed by the Federal Inland Revenue service.

“This seems to be an error in the process of amendments to replace the word “Board” as it appears in Federal Board of Inland Revenue,” Mr Abdullahi stated.

He also said the bill made electronic mails as the only channel that tax authorities would accept as a formal means of correspondence with taxpayers and concerning the late filing of Value Added Tax (VAT), the fine has been raised to N50,000 for the first month and N25,000 for subsequent months of failure.

“The penalty for failure to register for VAT is reviewed upwards to N50,000 for the first month of default and N25,000 for each subsequent month of default.

“The penalty for failure to notify FIRS of change in company address to be reviewed upwards to N50,000 for the first month of default and N25,000 for each subsequent month of default.

“This penalty also covers failure to notify FIRS of permanent cessation of trade or business.,” he said.

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Economy

Unlisted Stocks Languish in Red Zone after 0.25% Fall Wednesday

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unlisted stocks

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange extended its stay in the bearish zone on Wednesday, December 8 as the trio of FrieslandCampina WAMCO Nigeria Plc, NASD Plc, and Central Securities Clearing Systems (CSCS) Plc compounded its woes by 0.25 per cent.

FrieslandCampina WAMCO Nigeria Plc depreciated by N1 or 0.9 per cent at the midweek session to settle at N110.80 per share in contrast to the preceding day’s value of N111.80 per share.

It was followed by NASD Plc, which closed at N27.00 per unit compared with the previous day’s N27.15 per unit, indicating a decline of 15 kobo or 0.6 per cent.

On its part, CSCS Plc declined yesterday by 9 kobo or 0.5 per cent to close the session at N16.91 per share in contrast to N17 per share of the previous session.

The losses posted by these unlisted stocks chopped off N1.49 billion from the market capitalisation of the bourse during the session to close the day at N602.96 billion versus N604.45 billion it ended on Tuesday.

In the same vein, the NASD Unlisted Security Index (NSI) closed lower by 1.8 points to wrap the session at 729.82 points compared with 731.62 points of the previous session.

At the market on Wednesday, there was an increase in the volume of securities traded by investors and this was by 168.9 per cent as 1.9 million units of stocks exchanged hands compared with the earlier day’s 694,849 units of securities.

In the same vein, the value of shares traded at the midweek amounted to N37.9 million, which by evaluation is 72.5 per cent higher than the N22.0 million posted on Tuesday.

All these transactions were executed in 14 deals, according to data from the exchange, 12.5 per cent lower than the 16 deals carried out at the preceding day.

Food Concepts Plc closed the day as the most active stock by volume (year-to-date) for selling 11.4 billion units for N14.4 billion, Lighthouse Financial Services Plc has traded 1.1 billion for N546.2 million, while Geo Fluids Plc has sold 1.0 billion units for N700.1 million.

Also, Food Concepts Plc finished the day as the most active stock by value (year-to-date) with a turnover of 11.4 billion units worth N14.4 billion, Nigerian Exchange (NGX) Group Plc, which is no longer on the platform maintained its second spot with 456.5 million units worth N9.2 billion, while the third spot was taken by VFD Group Plc with 10.4 million units valued at N3.5 billion.

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Economy

Naira Trades Flat at I&E as Bitcoin, Ethereum Fall at Crypto Market

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Ethereum

By Adedapo Adesanya

It was a stalemate between the Naira and the US Dollar at the Investors and Exporters (I&E) segment of the foreign exchange (forex) market on Wednesday, December 8.

This was because, at the specialised window where investors source FX for approved needs, the local currency closed against the greenback at N415.07/$1, the same value it was sold at the previous session.

This happened despite a 51.7 per cent or $76.98 million rise in the demand for forex at the market window, as data obtained by Business Post from FMDQ Securities Exchange showed that yesterday, the turnover rose to $225.99 million from the previous day’s turnover of $149.01 million.

Also, the Naira recorded the same outcome at the interbank window of the forex market as the exchange rate of the domestic currency compared with its American counterpart remained unchanged at N411.74/$1 at the close of transactions at the midweek session.

However, the Nigerian Naira appreciated against the British Pound Sterling during the session by N2.68 to settle at N543.04/£1 versus Tuesday’s closing rate of N545.72/£1 and against the Euro, the local currency performed badly as it lost 53 kobo to trade at N474.07/€1 compared with N463.54/€1 it closed a day earlier.

Meanwhile, the scales tilted to the bullish side on aggregate at the crypto market yesterday as six of the 10 cryptocurrencies tracked by this newspaper closed on the green side.

The highest gainer was Tron (TRX) as it appreciated by 9.1 per cent to sell for N52.50, just as Dash (DASH) rose by 6.6 per cent to sell at N85,000.00, with Ripple (XRP) appreciating by 5.9 per cent to N487.19.

In addition, Binance Coin (BNB) gained 5.3 per cent to trade at N249,686.22, Litecoin (LTC) rose by 1.5 per cent to sell at N96,110.37, while Cardano (ADA) pointed north by making a 0.9 per cent gain to quote at N815.96.

On the losers’ side, Ethereum (ETH) made a 3.4 per cent slump to trade at N2,300,500.02, Bitcoin (BTC) fell by 0.9 per cent to trade at N28,330,347.37, Dogecoin (DOGE) retreated by 0.6 per cent to sell at N103.74, while the US Dollar Tether (USDT) depreciated by 0.5 per cent to sell for N571.85.

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