Innovative products such as technology-led share registration services have helped spur Africa Prudential Registrars plc to growth, as the leading registrar continues to aggressively increase share of the market through mergers and acquisitions.
According to the audited financial statement of the company, profit after tax (PAT) increased by 32.54 percent to N1.21 billion from N914.45 million the same period of the corresponding year (FY) 2013.
Profit before tax (PBT) also followed the same growth trajectory as it moved by 7.43 percent to N1.30 billion as against N1.21 billion last year.
Earnings per share (EPS) moved by 32.60 percent to 61k compared with 46k last year.
Revenue grew by 13.51 percent to N2.10 billion in the review period compared with N1.85 billion last year.
The impressive performance at the topline means the company was able to record increase in fixed periodic administration fees, transaction processing fees, fees for corporate actions, investment income held to maturity, term deposit, bankers’ acceptance and bonds.
Analysts attribute the stellar performance to the company’s ability to introduce innovative products such as technology acquisition and client touch, which helped curtail costs and also boost profitability and return on shareholders’ investment.
Africa Prudential’s net margin, a measure of profitability and efficiency, jumped to 57.62 percent in 2014 from 49.30 percent in 2013.
However, management needs to introduce some cost cutting measures as operating expenses increased by 51.17 percent to N953.32 billion in 2014 from N630.61 million last year.
Operating expenses ratio jumped to 45.40 percent in the review period as against 34.08 percent in 2013, which means for every N1 generated in revenue, the company spent N0.45 on operating expenses.
Return on equity (ROE) moved to 26.79 percent in 2014 from 21.10 percent the preceding year, while return on average (ROA) jumped to 6.40 percent from 5.56 percent last year.
The higher values of 26.79 percent means Africa Prudential is efficient in generating income on new investment. It also means the company is efficient in generating profits from each unit of shareholder equity and assets.
The company’s current ratio, which measures its ability to meet short-term obligation as of when due was 1.26 x, which is lower than the 2.1x industry average.
Total assets increased by 15.10 percent to N18.90 billion as against N16.42 billion the preceding year.
The company acquired UAC Registrars Limited, the oldest non-bank affiliated registrar in Nigeria, with a view to increasing share of market and adding value to shareholder’s wealth.
Africa Prudential’s share price closed at N3.24 on the floor of the exchange, while market capitalisation was N6.48 billion.
BALA AUGIE
