Pan African Capital plc, an investment holding and advisory service group, has recounted its progress made in the attainment of its five-year strategic initiatives, resulting in strong growth in fee and commission income in the financial year ended April 30, 2014.
The company set out at the beginning of 2014 financial year with strategic imperatives arising from its revised business model, which is a shift from investment banking business to investment holdings and advisory services.
Consequently, the company now has subsidiary firms operating across asset management, securities trading, registrar services and private equity.
“Our investment banking and advisory businesses will also be carried on as a separate legal entity as soon as all necessary regulatory approvals are obtained from Securities and Exchange Commission (SEC) for this purpose,” Chris Oshiafi, group managing director/CEO, said at the seventh annual general meeting held in Lagos.
According to Dolapo Atekoja, chairman, the group had a very strong growth in fees and commission income, which grew from N194 million to N427 million, representing an increase of 120 percent.
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The strong growth in fee income was due to the increase in scale in the company’s advisory and capital raising activities, driven by growth in transactional volumes.
However, the operating expenses grew by 48 percent, from N418 million to N622 million. The significant increase in operating expenses is largely due to diminution in value of investments.
The group profit before tax reduced by 44 percent, from N386 million to N216 million. The performance was in part due to the group’s focus on underlying businesses, and enhanced creativity in its service offerings.
“All the downsides on our operations were minimised despite the highly challenging business environment that persisted for the most part of year 2013/2014, which witnessed an unprecedented level of insecurity in some parts of the country,” Atekoja said at the meeting.
The shareholders at the meeting approved a dividend payment of N174.6 million, representing 5 kobo per ordinary shares held by members as of October 21, 2014.
Humphrey Oriakhi, one of the shareholders who spoke with BusinessDay shortly after the AGM, said: “The performance, though moderate, but we know that the prospects are there for greater achievements in terms of returns to shareholders. The horizon for us is looking brighter. The dividend might look small but I think it is great considering the size of the company. We have companies that are considered to be larger, even banks that are not able to pay 5 kobo. So, for a company such as our, to be able to pay that consistently over the years now, I think it is a great thing.”
Garba Ahmed, another shareholder, told BusinessDay that “the management has been given a pass mark by the shareholders by way of passing all the resolutions unanimously, and I am glad in one of the resolutions there is a dividend of 5 kobo, which is a modest efforts on the part of the management to see that shareholders get return on their investment.”
HOPE MOSES-ASHIKE
