Africa Prudential Plc has reported a profit after tax of N1.68bn for the financial year ended December 31, 2019, compared to N1.95bn in FY 2018, accounting for 13.9 per cent YoY decline.
According to the company’s result highlights obtained from the Nigerian Stock Exchange, profit before tax stood at N2.40bn, compared to N2.39bn in FY 2018 representing a 0.2 per cent YoY decline.
Revenue from contracts with customers stood at N1.50bn compared to N1.42bn in FY 2018 accounting for 6.0 per cent YoY increase. Gross earnings were N3.90bn compared to N4.49bn in FY 2018, accounting for 13.0 per cent YoY decline.
Comparing FY 2019 to FY 2018, the company noted that profit before taxation for the period under review reduced by 0.2 per cent despite the decline in gross earnings.
The reduction according to the company was on the back of an 89 per cent drop in the interest paid on borrowings which effectively reduced the company’s finance cost by 88 per cent.
On the gross earnings, the firm said the decline in treasury bills yields witnessed in 2019 brought about a 22 per cent reduction in revenue made from interest income thereby causing the company’s gross earnings to reduce by 13 per cent.
Commenting on the result, The Managing Director/CEO of Africa Prudential, Mr Obong Idiong said, “2019 was a challenging year in the money and capital market as businesses struggled to deliver positive results due to the drastic reduction in interest rates on treasury bills and other money market instruments.
We were also affected by this decline which causes our gross earnings to fall by 13 per cent year-on-year, we were, however, able to increase our revenue from contracts through a strategic increase in our retainership fee by 21 per cent. We remain dedicated to delivering quality registrar business to our clients while we slowly transit into digital technology.
“During the period under review, our Innovation Lab introduced a number of innovative products to the market, some of which include a new version of EasyCoop, an enterprise resource solution for cooperative societies and EasyMall, a cooperative market place.
“We have also continuously strived to improve how we currently serve our clients as evident in the recent upgrade of our Customer Experience Centre and the introduction of new customer channels. Our Digital Transformation journey is on course as we change the way we create, deliver and capture value.”
Idiong added, “For us at Africa Prudential, the future is digital technology-driven which is why we are integrating all our processes into a seamless system that offers world-class solutions to our customers and creating new revenue lines.
“In the long-run, this would reduce our huge exposure to capital market activities which have been on a decline of late.
“Our company would continue to innovate not only to improve capital market interactions but also to improve our top line in order to deliver superior value to all stakeholders.”