Business News Politics

United Capital grows H1 profit by 16% to N1.91bn

United Capital Plc has released its unaudited financial result for the half-year (H1) period ended June 30, 2020.

Highlights of the result at the Nigerian Stock Exchange (NSE) show revenue of N4.45 billion in H1 2020, compared to N3.24 billion in H1 2019, representing 37 percent year-on-year (YoY) increase.

Operating Income of N4.10 billion in H1 2020, compared to N2.82 billion in H1 2019, implies 45percent YoY increase.

Operating expenses of N2.18 billion in H1 2020, compared to N1.25 billion in H1 2019, implies 74 percent YoY increase. Profit Before Tax (PBT) of N2.27 billion in H1 2020, compared to N1.99 billion in H1 2019, represents 14 percent YoY increase; while Profit After Tax (PAT) of N1.91 billion in H1 2020, compared to N1.65 billion in H1 2019, represents 16 percent YoY increase. Earnings Per Share (EPS) increased to 32 Kobo (2019: 28kobo).

The company’s statement of financial position shows Total Assets of N219.73 billion in H1 2020 compared to N150.46 billion as at FY 2019, which implies 46 percent year-to-date (YtD) growth. Total liabilities stood at N201.60 billion in H1 2020, compared to N130.88billion as at FY 2019 (54 percent YtD growth). Shareholders fund of N18.12 billion in H1 2020, decreased by 7.5percent YtD as at FY 2019 N19.59 billion.

Commenting on the group’s performance, the Group CEO, Peter Ashade said: “The COVID-19 pandemic has lasted than envisaged and caused greater speculations of global recession and slower global recovery from the pandemic. The Nigerian economy has been greatly affected by the pandemic as seen in the increasing depreciation of the exchange rate, inflation rate and other economic indicators. As we stated at the release of our last quarter result, our business was not immune to these challenges; however, the Group was able to endure the challenges- Thanks to the well-articulated and diligent implementation of our plans set out last year.”

See also  Nigeria not beneficiary of recent IMF Debt relief – Finance Minister

“With our well-articulated plans, business continuity plan in economic crisis and solid risk assessment framework we were able to deliver an increased revenue of over 37.26percent, increased PBT of 14.10percent and PAT increase of 15.98percent. During this same period, we successfully issued our N10 billion Series 1 bond under the N30 billion Medium-Term Debt Program – The first to be issued by an investment banking firm in Nigeria – which was oversubscribed by about 24percent,” he said.

“Going into the remaining half of the year, we remain assiduously committed to deliver greater returns to our shareholders, by constantly reviewing our strategy in the light of global and domestic happenings, ensuring that we provide value to all our stakeholders from time to time”,
Ashade stated.

While discussing the result further he noted that; “In line with our initial strategy for the 2020 business year, we shall continue to push further our market diversification and cost-optimization initiatives as well as implement phased automation of our business processes whilst upholding our commitment to ensuring a significant improvement in our value delivery to all our stakeholders”.