The Nigerian Exchange Group (NGX) Plc has increased its total assets to N35.1 billion in its 2020 financial year.
Specifically, the group financial performance for the year ended, December 31, 2020, showed that total assets grew nine per cent from N32.1 billion in 2019 to N35.1 billion in the year under review.
However, the year 2020 ended with 23 per cent decline in the group’s income to N6.02 billion, while expenses rose by 13 per cent to N6.11 billion in 2020. Surplus after tax stood at N1.84 billion, a year-on-year decline of 19 per cent, as against N2.27 billion recorded in 2019.
These were made known at the group’s 60th annual general meeting (AGM) held in Abuja yesterday, as the shareholders supported the resolutions proposed at the meeting.
The meeting, which is the first AGM of the group as a demutualised, shareholder-owned, for-profit entity, further to previous shareholder and regulatory approvals, marked a historic moment.
Shareholders approved the group’s proposals to introduce equity-based incentives to employees’ remuneration, including an Employee Share Ownership Plan and a Long-Term Incentive Plan, aligning the interests of internal stakeholders with those of shareholders in long term value creation.
Speaking, the group chairman, NGX Group Plc, Otunba Abimbola Ogunbanjo stated, “This meeting is also historic in that it marks the first time in the history of the NGX group that its AGM will hold outside the hallowed confines of the Exchange House in Lagos and we have chosen the federal capital territory, Abuja in recognition of the integral role the federal government of Nigeria played in actualising the demutualisation of NSE and its support in establishing NGX Group.”
He noted that “Staying firmly afloat during the stormy financial year, the Group recorded an operating surplus of N1.84 billion for the year, which represented a decline of 18.56 per cent from 2019. Our listing fees income reflected the headwinds dealt by the COVID-19 pandemic, declining by 62.66 per cent from the previous year driven by uncertainty of prospective issuers in the wake of the pandemic. Following management’s cost containment efforts, total expenses declined by 12.86 per cent year-on-year without affecting the Exchange’s high operating standards and service delivery.”
He added that “Our net assets grew by 10.03 per cent to N31.28 billion providing us with greater financial flexibility to execute on our strategic agenda and respond to changes in our operating environment.”
On outlook for 2021, the group managing director/CEO, NGX Group, Oscar Onyema said, “We will continue to execute on our 2018 to 2021 corporate strategic plan, with an even keener focus on executing our long-term market development initiatives.
“Following the completion of our demutualisation process, we welcome the new possibilities that have opened up for us and will prioritize those which enable us to deliver greater value to our community of global investors and issuers.”