United Capital Plc Revenue Down by 7% Year-on- Year, Due to Decline in Investment Income

0
United Capital sees 26% rise in PAT to N3.46bn

HIGHLIGHTS OF THE RESULT:

Year-on-Year Analysis reveals the following;

Income Statement

  • Revenue: N8.59 Billion in FY2019, compared to N9.26 Billion in 2018 (7% YoY Decline)Net Operating Income: N7.05 Billion in FY2019, compared to N7.21 Billion in FY2018 (2% YoY Decline).
  • Profit Before Tax: N4.95 Billion in FY2019, compared to N6.22 Billion in FY2018 (20% YoY Decline).
  • Profit After Tax: N4.97 Billion in FY 2019. compared to N4.34 Billion in FY 2018 (15% YoY Increase).
  • Earnings Per Share: 83 Kobo (up by 15%

United Capital Plc Revenue Down by 7% Year-on- Year, Due to Decline in Investment Income - Brand Spur

Statement of Financial Position

  • Total Assets: N150.46 Billion, compared to N148.70 Billion as at FY2018 (1,2%YaYgrowth)
  • Total Liabilities: N130,88 Billion, compared to N132.86 Billion as at FY2018 (1.5%YaY decline)
  • Shareholders’ Fund: N19.59 Billion compared to N1S.83 Billion as at FY2018 (23.7%YaY growth)

FY2019 to FY 2018 we observed the following items worthy of note:

  • Revenue: For the year under review, the group’s total revenue decreased by 7% year-on-year, due to a decline in investment income, net trading income, and other income. This decline is attributable to low economic activities in the capital and money market. However, the group was able to turn in a 3% year-on-year increase in Fees and Commission income which effectively reduced the impact of the decline in gross earnings.
  • Total Assets: The group’s total assets increased by 1.2% majorly driven by a 7% surge in the Group’s investment in financial assets as well as a 4% increase in trade & other receivables.
  • Profit Before Tax: For the year under review, PBT decreased as a result of a decline in revenue as well as an increase in the cost of doing business.
  • PAT Margin: During the year under review, the PAT margin improved to 58% compared to the 47% in the previous year on the back of the group’s strategic tax management leading to a deferred tax liability write back during the year.
Read Also:  Insider Dealing: United Capital's Group Executive Director Acquires 558,754 Units of Shares

United Capital Plc Revenue Down by 7% Year-on- Year, Due to Decline in Investment Income - Brand Spur

Proposed Dividend: The Directors proposed a dividend of SOkper share, amounting to a total of N3b dividend to be paid to shareholders upon approval of members at the AGM. The dividend is payable to shareholders whose names appear on the Register of Members at the close of business on March 6, 2020.

United Capital Pic, (NSE: UCAP, Bloomberg: UCAP: NL, Financial Times: UCAP LAG) announced its Audited Financial Statements for the year ended December 31, 2019. During the year under review, Total Asset stood at N150,46 Billion compared to N148.70 Billion as at FY2018, Total Liabilities stood at N130.88 Billion as against N132.86 billion in the previous year while Shareholders’ Fund grew to N19.S9 Billion from N15.83 Billion as at FY2018.

United Capital PLC also declared a dividend. The following are the details related to the dividend:

Financial period FY 31/12/2019
Ex-Dividend date  09/03/2020
Record date 06/03/2020
Payment date 26/03/2020
Dividend amount per share 0.5 NGN