BY OLUSHOLA BELLO, Lagos
United Capital Plc recorded a growth of 57 per cent in its net profit for the financial year ended December 31, 2020.
The company audited results released on the Nigerian Stock Exchange (NSE) showed that profit after tax grew from N4.97 billion in 2019 year end to N7.81 billion in 2020, while earnings per share of the company closed 2020 at N1.30 from 83 kobo in 2019.
The directors of Company proposed a dividend of 70 kobo per share, amounting to a total of N4.2 billion to be paid to shareholders upon approval of members at the Annual General Meeting (AGM). The dividend is payable to shareholders whose names appear on the Register of Members at the close of business on March 5, 2021.
The Group reported impressive growth across key indicators during the year under review despite the challenging global climate.
The Company’s gross earnings up by 50 per cent, to N12.87 billion in 2020, compared to N8.59 billion in 2019. Net Operating Income stood at N12.49 billion in 2020, higher than N7.90 billion in 2019, resulting to 58 per cent growth year-on-year, while operating expenses rose by 35 per cent from N3.64 billion in 2019 to N4.93 billion in 2020.
The financial position of the company revealed that total assets stood at N224.75 billion, as against N150.46 billion as at December 31 2019, while shareholders Fund moved to N24.43 billion, a 25 per cent increase year-on-year relative to N19.59 billion as at December 31, 2019, which was driven by the strong 29 per cent growth in retained earnings.
Speaking on the Group’s performance, the group CEO of United Capital, Mr Peter Ashade, said, “United Capital 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.”