Africa Prudential Plc, a leading share registration firm, investor and business support services provider in Nigeria; and the only registrar firm listed on the NSE; specializing in customer-focused, technologically driven service for corporations, released its Unaudited Financial Statements for the period ended June 30th 2021 in which the top and bottom lines of the results depreciated in the first six months of the year.
Comparing HY 2021 to HY 2020, Brand Spur observed that Africa Prudential’s revenue from contracts with customers contracted by 12% year-on-year on the back of a significant renegotiation of fees rate by customers along with its corporate actions revenue lines as well as slow sign off of contracts within the period in digital consultancy. However, revenue from register maintenance increased by 8%.
On account of the business considerations around revenue and operating cost, Profit After Tax decreased by 24% year-on-year while Profit Before Tax dropped to N0.97 Billion, compared to N1.22 Billion in HY 2020 representing a 20% YoY decline.
In the second quarter of 2021, the total assets increased 401% on the back of 7336% surge in cash and cash equivalents as well as a 70% increase in trade and other receivables.
Africa Prudential’s total liabilities increased by 762% Year-till-date driven by a 829% increase in customers’ deposits which accounted for about 99% of the company’s liabilities. Due to a slight drop in earnings, total equity marginally declined by 2% year-to-date.
While the company was bullish with 436% increase in the interest realized from bonds and also a 193% increase in the interest realized from short term deposits, there was a slight 10% year-on-year decline in interest income owing to a 4% decline in interest on loans and advances and a nil income on T-Bills relative to HY 2020.