Africa Prudential, listed Digital Technology, Business Support Solutions, and Share Registration service provider grew its half-year profit by 5% to N1.08 billion as it slightly improved on its previous year’s performance during the challenging business period.
Despite a decline in revenue, Africa Prudential was able to beat its 2019 half-year profit growth of 4% thanks to zero finance cost during the period. This performance has helped the firm maintain its billion-naira profit mark.
“At Africa Prudential, we are driven by the desire to continuously leverage technology to redefine value creation and provide exceptional experience to clients across our various touchpoints, while generating superior value for our investors,” said Obong Idiong, MD/CEO Africa Prudential.
Idiong said through the structure Africa Prudential put in place in the first quarter of the year to maximize Nigeria’s current business cycle, it was able to achieve impressive quarter-on-quarter results, increasing gross earnings by 52% and PAT by 144%.
“We were also able to deliver an improved result year-on-year, growing interest income and PAT by 12% and 5% respectively,” he said.
Africa Prudential revenue from contracts with customers contracted by 32.12% year-on-year to N59o million as COVID-19 hit hard and caused a 100% drop in retainership fee in the first half of the year.
However, the company was able to increase fees from corporate actions by 34.87%, register maintenance by 32.81% and digital consultancy by 94.33% year-on-year.
Africa Prudential also grew its interest income by 12.45% year-on-year to N1.28 billion helped by a double-digit rise in interest income on loans and advances, and a triple-digit surge in interest income on bonds which compensated for the drop in interest income from treasury bills and in interest on short-term deposits due to the poor yield environment.
Africa Prudential’s total assets during the period under review appreciated 22.78% year to date to N22.89 billion and Total liabilities grew 44.47% to N14.97 billion. While its shareholders’ wealth declined by 4.37% to N7.92 billion due to payment of N1.4 Billion dividends during the year.
Returns on Equity rose to 13.67% from 12.41% in both half-year periods of 2020 and 2019 respectively. This was not due to improved ROA suggesting higher financial leverage.
Asset turnover was at 0.08X in the current year compared to 0.11X last year. Earnings per share rose to 54.14 kobo from 51.4 kobo and profit margin rose to 57.82% from 51.145 over the period of analysis indicating greater profitability.
Africa Prudential Plc is a leading share registration firm, investor and business support services provider in Nigeria; and the only registrar firm listed on the NSE; specializing in customer-focused, technologically driven service for corporations.