United Capital Reports An Impressive 57% Growth In PAT

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Lagos, 22 February 2021: United Capital Plc, announced its audited Financial Statements for the period ended December 31st, 2020. During the period under review, the Group showed significant growth in key indicators despite the challenging global economic climate and Covid-19 pandemic.

United Capital reported impressive growth across key indicators during the year under review despite the challenging global climate. Total Revenue in FY 2020 grew 50% to N12.87bn from N8.59bn in FY 2019, Profits before tax recorded a significant growth of 61%, while PAT was up 57% year-on-year.

An increase of 48% was recorded in Total Assets, being well-financed by a 52% increase in Liabilities, while Shareholders Fund grew 25% on the back of a strong 29% growth in retained earnings.

HIGHLIGHTS OF THE RESULT

Statement of Profit or Loss:

Year-on-Year Analysis (FY 2020 to FY 2019) reveals the following;

  • Gross Earnings: N12.87 billion in 2020, compared to N8.59 billion in 2019 (50% growth year-on-year)
  • Net Operating Income: N12.49 billion in 2020, compared to N7.90 billion in 2019 (58% growth year-on-year)
  • Operating expenses: N4.93 billion in 2020, compared to N3.64 billion in 2019 (35% growth year-on-year)
  • Profit Before Tax: N7.95 billion in 2020, compared to N4.95 billion in 2019 (61% growth year-on-year)
  • Profit After Tax: N7.81 billion in 2020, compared to N4.97 billion in 2019 (57% growth year-on-year)
  • Earnings Per Share: 130 kobo. (2019: 83 kobo)

United Capital Plc Raises N15Bn in Series 3 Commercial Paper Issuance

Statement of Financial Position:

  • Total Assets: N224.75 billion, compared to N150.46 billion as at December 31 2019 (48% growth year-on-year)
  • Total Liabilities: N198.32 billion, compared to N130.88 billion as at December 31 2019 (52% growth year-on-year)
  • Shareholders Fund: N24.43 billion, a 25% increase year-on-year relative to N19.59 billion as of December 31 2019.

United Capital Reports An Impressive 57% Growth In PAT Brandspurng

Comparing FY 2020 with FY 2019, the following are worthy of note:

  • Total Revenue: United Capital’s total revenue increased by an impressive 50% YoY on the back of strong growth in Fee and Commission income (+77% YoY), Investment Income (+42% YoY), and net trading income which was up 453% YoY.
  • cost-to-income ratio: There was improved operational efficiency during the period as the cost-to-income ratio declined by 4.13 percentage points, largely attributable to the faster growth in revenue (+50% YoY) relative to operating expenses (+35%YoY). Of note, however, there was a sharp 513% increase in impairment allowance as a result of a notable 54% year-on-year increase in financial assets.
  • PBT Margin: United Capital’s Profitability margin also improved with PBT margin gaining 4.13 percentage points to 62% for FY 2020 relative to 58% for FY 2019 as PBT expanded by 61% during the period.
  • PAT Margin: PAT margin also improved, up 2.79 percentage points to 61%, despite a tax charge of 2% for 2020 relative to a tax credit of N23.7 million in 2019.
  • Total Assets: Total Assets grew by 48% YoY largely on account of a significant 54% YoY increase in investment in financial assets and a 44% growth in the cash and cash equivalents line.
  • Total Liabilities: A 60% growth in managed funds and a 43% increase in other borrowed funds saw total liabilities rise by 52% YoY.
  • Shareholders’ Fund: Shareholder’s wealth improved during the period, up 25% YoY driven by the strong 29% growth in retained earnings.
  • Proposed Dividend: The Directors proposed a dividend of 70k per share, amounting to a total of an N4.2billion 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 5, 2021.
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United Capital Reports An Impressive 57% Growth In PAT Brandspurng
*UCAP share price at 31/12/2020

While commenting on the group’s performance the Group CEO, Mr. Peter Ashade, had this to say:

“I am pleased to inform all stakeholders that United Capital Plc delivered impressive returns amid the unprecedented environment worsened by the pandemic during the 2020 financial year with remarkable double-digit growth in Revenue, PBT and PAT and solid performance across key business parameters.

This empowers us to adopt a more positive outlook for the year 2021 as we navigate the tough terrain compounded by a second wave of the COVID-19 pandemic among other severe economic challenges.”

Discussing the result further he stressed that;

“Despite the tough operating environment, all stakeholder groups can be assured of our commitment to providing best-in-class solutions to diverse client segments and delivering superior returns to shareholders even as we work with regulatory authorities to strengthen the broader financial system as the domestic economy continues on the path to recovery in the year 2021.”

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Latest News

Kinaxis Named a Leader in the 2021 Gartner Magic Quadrant for Supply Chain Planning Solutions Report

Kinaxis evaluated on both execution and vision with furthest placement for completeness of vision in the Leaders quadrant

 

OTTAWA, CANADA - Media OutReach - 4 March 2021 - Kinaxis® Inc. (TSX:KXS), the authority in driving agility for fast, confident decision-making in an unpredictable world, today announced it has been named a Leader in the 2021 Gartner Magic Quadrant for Supply Chain Planning Solutions. The company is recognized for both the ability to execute and its completeness of vision. Kinaxis is positioned furthest on the Completeness of Vision axis amongst those in the Leaders quadrant 1.

A complimentary copy of the report can be downloaded from Kinaxis. This is the seventh consecutive time Kinaxis has been named a Leader in a Gartner Magic Quadrant related to supply chain planning 1 .

"In the face of the unprecedented level of disruption over the past year, corporate supply chains have never been more relevant and doing nothing to improve planning has become the biggest risk. Supply chain leaders at companies of all sizes have recognized a need for a transformational shift to agility and resiliency based on a new planning technique -- concurrent planning, that only Kinaxis can provide," said John Sicard, CEO of Kinaxis. "Kinaxis uniquely combines AI, analytics and human intelligence to empower innovative manufacturers to eliminate functional silos and cost-effectively optimize the potential of their supply chains in just a few weeks."

Continued Sicard, "We believe we are the leading innovator based on vision in the market and are thrilled with our positioning for our current, proven RapidResponse platform. Kinaxis takes pride in our talented team, the collaborative relationships we have with our customer and partner community and helping advance the craft of supply chain planning for the benefit of the planet."

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Top-tier manufacturers around the world use Kinaxis in the aerospace and defense, automotive, consumer products, high-tech and electronics, industrial, life sciences and retail industries, including Unilever, Schneider Electric, Flex, Merck, Technicolor, Alstom and Honda, and many others.

"Schneider Electric's supply chain digitalization journey, including our work with Kinaxis, has allowed us to function as a truly global enterprise," said Mourad Tamoud, Chief Supply Chain Officer at Schneider Electric. "Through our engagement with Kinaxis, we have found them to be industry-leading, and the partnership has enabled us to have greater transparency, wider collaboration and increasingly autonomous high-quality decision-making throughout the organization."

Kinaxis RapidResponse® is a cloud-based software-as-a-service (SaaS) platform purpose-built for planning, leveraging patented in-memory database technology and always-on algorithms. Combined with Kinaxis' unique concurrent planning technique and AI, RapidResponse helps global manufacturers gain agile and resilient supply chains. The Kinaxis suite of ready-to-deploy planning applications (S&OP / IBP, Demand, Supply, Command & Control Center, Inventory, Live Lens Insights) is optimized with industry best practice processes and robust analytics that are synchronized across long and short-term planning and across the end-to-end network from customers to suppliers. The RapidResponse platform is uniquely extensible to build, access or connect to custom applications, algorithms and external systems across the supply network ecosystem.

Kinaxis helps customers accelerate value realization with multiple deployment options to go-live in as little as six weeks. These seamlessly expandable options allow companies to start now and focus on the most important initiatives. All based on RapidResponse, these options can grow over time to meet budget, team and change management needs along the digital transformation journey.

"Gartner defines a supply chain planning (SCP) solution as a platform that provides technology support which allows a company to manage, link, align, collaborate and share its planning data across an extended supply chain. It supports demand creation through to the detailed supply-side response and from strategic planning through tactical-level planning. An SCP solution is the planning decision repository for a defined end-to-end supply chain and is the environment in which end-to-end integrated supply chains are managed. It establishes a single version of the truth for the plan data and decisions, regardless of the underlying execution technology environment." 1

The SCP market was worth $5.2 billion in 2019 and is projected to grow at a five-year compound annual growth rate (CAGR) of 7.5% according to the Gartner Forecast: Enterprise Application Software, Worldwide, 2018-2024, 4Q20 Update. 2

According to Gartner, "Leaders demonstrate strong SCP solution vision and execution capabilities. They have a broad, deep and differentiated functionality that addresses a broad range of user requirements. Their coverage across the three categories of planning capability -- configure, optimize and respond -- is good enough, with a good balance across the categories now and/or planned for the future. They have a reasonable range of features to support a user's maturity journey. Their visions for supporting the three paradigms of SCP -- algorithmic SCP, digital supply chain planning and resilient planning -- align with Gartner's vision. When these three paradigms are blended together, they build the foundation to support a Level 5 SCP environment. Leaders anticipate where customer demands and markets are moving and identify how innovative technologies can be applied to planning applications. They have strategies to support these emerging requirements to build a future-proof SCP solution. Because leaders are well-established in leading-edge complex user environments, they benefit from a user community that helps them remain in the forefront of emerging needs." 1

For further information, you can access a complimentary copy of the full Magic Quadrant for Supply Chain Planning Solutions report here.

1 Gartner, Magic Quadrant for Supply Chain Planning Solutions, A. Salley, T. Payne, P. Orup Lund, Feb. 22, 2021

Gartner, Magic Quadrant for Sales and Operations Planning System of Differentiation, T. Payne et al, May 7, 2019; Gartner, Magic Quadrant for Supply Chain Planning System of Record, Payne, Tim, Pradhan, Alex, & Salley, Amber, 21 August 2018

2 Gartner, Forecast: Enterprise Application Software, Worldwide, 2018-2024, 4Q20 Update, Amarendra, N. Gupta, B. Abbabatulla, A. Woodward, C. Pang, C. Roth, E. Hunter, J. Hare, K. Quinn, J. Poulter, Y. Dharmasthira, J. Kostoulas, December 22, 2020

Gartner Disclaimer:

Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.


About Kinaxis Inc.

Everyday volatility and uncertainty demand quick action. Kinaxis® delivers the agility to make fast, confident decisions across integrated business planning and the digital supply chain. People can plan better, live better and change the world. Trusted by innovative brands, we combine human intelligence with AI and concurrent planning to help companies plan for any future, monitor risks and opportunities and respond at the pace of change. Powered by an extensible, cloud-based platform, Kinaxis delivers industry-proven applications so everyone can know sooner, act faster and remove waste. For more Kinaxis news, visit Kinaxis.com or follow us on LinkedIn or Twitter.

Forward-Looking Statements

Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include statements as to Kinaxis' growth opportunities and the potential benefits of, and demand for, Kinaxis' products and services. These statements are subject to certain assumptions, risks and uncertainties, including our view of the relative position of Kinaxis' products and services compared to competitive offerings in the industry. Readers are cautioned not to place undue reliance on such statements. Kinaxis' actual results, performance, achievements and developments may differ materially from the results, performance, achievements or developments expressed or implied by such statements. Risk factors that may cause the actual results, performance, achievements or developments of Kinaxis to differ materially from the results, performance, achievements or developments expressed or implied by such statements can be found in the public documents filed by Kinaxis with Canadian securities regulatory authorities. Kinaxis assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.

United Capital Reports An Impressive 57% Growth In PAT - Brand Spur
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