In spite of a decline in its earnings due to impact of Covid-19, Africa Prudential Plc, a digital technology and investor services firm listed on the Nigerian Stock Exchange (NSE), on Thursday declared the payment of N1 billion as dividend to shareholders.
Consequently, the shareholders who were present at the Annual General Meeting held virtually on Thursday, March 25, 2021, were all smiles and commended the company for not only declaring dividends but paying same the following day Friday.
Some of the shareholders include Sunny Nwosu, national coordinator emeritus, Independent Shareholders Association of Nigeria (ISAN), Bisi Bakare of Pragmatic Shareholders Association of Nigeria, and Boniface Okezie Chairman Progressive Shareholders Association (PSAN).
According to the notice issued by the company’s secretary, the payment of 50 kobo per share is commensurate with the resolution made at the Company’s Board meeting, which was held on Thursday, February 18, 2021, amounting to a gross dividend pay-out of N1 billion.
Profit after tax for the company declined by 14% from N1.6bn in 2019 to N1.4bn in 2020 due to the impact of the Covid-19 pandemic on some traditional income lines.
While addressing stakeholders at the meeting, Eniola Fadayomi, Chairman of the company, noted in her statement that “despite the challenging operating environment in 2020, our Company recorded a Gross Revenue of N3.5 billion, and Profit Before Tax of N1.98 billion. In response to the disruptive effects of the pandemic, the Company activated its Business Continuity Plan to seamlessly offer its services to millions of its customers on its digital channels with no disruption to its operation.”
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Commenting on the results, Obong Idiong, managing director/CEO, said, “The transition of the company from its traditional registrar business to a technology business provider—deploying technology to create value in the Capital Market, financial services investment, hospitality, cooperative and other business sectors—could not have come at a better time. This is evident in the 625% year-on-year growth in digital technology consultancy income.
“The overarching interest of the Registrar Business, has been to continuously deploy new, innovative ways to transform investors’ experience in the capital market. The company achieved 93% total dividend pay-out for its clients in 2020 compared to 89% in 2019 as the company continue to ease the dividend enrolment process for investors.”
Notwithstanding economic realities during the pandemic, Africa Prudential has shown commitment to rewarding its shareholders and increasing their wealth consistently. It is worthy of note that the company has consistently paid dividends to its shareholders since listing in 2013.
The company announced its Audited Financial Statements for the period ended December 31st, 2020, with a Gross Earnings of N3.50 billion and Profit before Tax of N1.98 billion.
Operating expense of the company declined by 8.42% from N1.7bn in 2019 to N1.5bn in 2020 due largely to savings from skeletal operational activities and the adoption of remote work mode to protect its staff and clients from the rapidly spreading Covid-19 infection in 2020.
“This was also aided by our previous investment in technology tools which aided the immediate activation of our disaster recovery plan with no significant additional cost to the Company,” Idiong said.
