The management of United Capital Plc, a leading African financial and investment banking Group, has disclosed that Opeoluwa Ashiru, Head, Business Process Improvement and Control, has acquired ordinary shares of 94,300 at N5.54 per share on April 7, 2021.
In a statement signed by Leo Okafor, Company Secretary and released through the Nigerian Exchange Limited, United Capital Plc said the transaction took place at the Exchange floor in Lagos, Nigeria.
Opeoluwa Ashiru reduced his stake within the business with the sale of his ordinary shares of 181,240 at N4.70 per share on December 17, 2020.
United Capital Plc reported impressive growth across key indicators during the period under review despite the challenging global climate.
Total Revenue in Q1 2021 grew 62.57% to N3.12 bn from N1.92 bn in Q1 2020, Profits before tax recorded a significant growth of 67.85%, while PAT was up 67.82% year-on-year. An increase of 21.23% was recorded in Total Assets, and a 25.23% increase in Liabilities, while Shareholders Fund declined 11.25%.
Year-on-Year Analysis (Q1 2021 to Q1 2020) reveals the following;
- Gross Earnings: N3.12 billion in Q1 2021, compared to N1.92 billion in Q1 2020 (63% growth year-on-year)
- Net Operating Income: N3.10 billion in Q1 2021, compared to N1.89 billion in Q1 2020 (64% growth year-on-year)
- Operating expenses: N1.15 billion in Q1 2021, compared to N0.74 billion in Q1 2020 (54%
- Profit Before Tax: N1.97 billion in Q1 2021, compared to N1.18 billion in Q1 2020 (68% growth year-on-year)
- Profit After Tax: N1.66 billion in Q1 2021, compared to N0.99 billion in Q1 2020 (67% growth year-on-year)
- Annualized Earnings Per Share: 111 kobo. (Q1 2020: 66 kobo)
Statement of Financial Position:
- Total Assets: N270.04 billion, compared to N222.75 billion as at FY 2020 (21% year-to-date growth)
- Total Liabilities: N248.36 billion, compared to N198.32 billion as at FY 2020 (25% year-to-date growth)
- Shareholders Fund: N21.68 billion, an 11% year-to-date decrease relative to FY 2020’s value at N24.43 billion.
Comparing Q1 2021 with Q1 2020, the following are worthy of note:
- Total Revenue: United Capital’s total revenue recorded an impressive 63% growth year-on-year on the back of strong growth in Fee and Commission income (+133% year-on-year), Investment Income (+28% year-on-year), and net trading income which was up 137% year-on-year.
- cost-to-income ratio: Continued improvement in operational efficiency was seen during the period as the cost-to-income ratio declined by 2.0 percentage points, largely attributable to the faster growth in revenue (+63% year-on-year) relative to operating expenses (+54%yearon-year).
- However, there was a sharp increase in impairment allowance due to the IFRS 9 requirement that some financial assets be measured at amortized costs.
- PBT Margin: United Capital’s Profitability margin also improved with PBT margin gaining 2.0 percentage points to 63% for Q1 2021 relative to 61% for Q1 2020 as PBT increased by 68% year-on-year during the period.
- PAT Margin: PAT margin also improved, gaining 1.5 percentage points despite a higher tax charge of 16.0% for Q1 2021, relative to a charge of 15.7% during the same period in 2020.
- Total Assets: Total Assets grew by 21.23% year-to-date driven by a significant 241% increase in cash and cash equivalents and an 11% growth in trade and other receivables.
- Total Liabilities: This increased by 25.23% owing to the growth in short term investment by 58.45% and trust funds by 19.53%. In aggregate, the Group’s managed funds grew by 40.05%.
- Shareholders’ Fund: shareholders’ funds declined 11.25% YTD, with retained earnings down 11.76% due to the impact of N4.2b dividend payout during the period under review.