UCAP declares N991m PAT in Q1 2020 Results;(SP:N2.13k)

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Tuesday, April 21, 2020 / 1:02 PM / By NSE / Header Image Credit: United Capital 


United Capital  Plc released its Q1 2020 Unaudited results for the period ended March 1st, 2020.


Key Highlights

  • Gross Earnings grew by 32.3% to N1.9bn from N1.5bn in the previous quarter.

  • Profit before tax grew by 53.4% to N1.2bn.

  • Profit after tax grew by 53.9% to N991m.

  • Net Assets grew by 5.8% to N20.7bn from N19.6bn.


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Press Release from United Capital

 

Highlights of the Result: 


Statement of Profit or Loss:


  • Revenue: N1.92 billion in Q1 2020, compared to N1.45 billion in Q1 2019 (32% YoY Increase)


  • Operating Income: N1.89 billion in Q1 2020, compared to N1.35 billion in Q1 2019 (40% YoY Increase)


  •  Operating expenses: N0.74 billion in Q1 2020, compared to N0.68 billion in Q1 2019 (9% YoY Increase)


  • Profit Before Tax: N1.18 billion in Q1 2020, compared to N0.77 billion in Q1 2019 (53% YoY IncreaseZ


  • Profit After Tax: N0.99 billion in Q1 2020, compared to N0.64 billion in Q1 2019 (54% YoY Increase)


  • Earnings Per Share:  17 Kobo. (2019: 11kobo)

 

Statement of Financial Position:

  • Total Assets: N197.41 billion, compared to N150.46 billion as at FY 2019 (31% YTD growth)

  • Total Liabilities: N176.69 billion, compared to N130.88billion as at FY 2019 (35% YTD growth)

  • Shareholders Fund: N20.72 billion, increased by 6% YTD as at FY 2019 N19.59 billion.


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Comparing Q1 2020 with Q1 2019, there are a few points to note such as: 


  • Total Revenue: United Capital Plc's total revenue increased significantly by 32% year on year, on the back of the company's 55% increase in fee and commission income and 223% increase in net interest margin as well as a 149% growth in Net trading income.

  • Cost-to-Income ratio: This improved significantly, recording 39% in Q1 2020 compared to the 47% recorded in the same period last year, as the Group continues to implement its cost containment measures.

  • PBT Margin: During the period under review, PBT Margin stood at 61% on the back of revenue growth and sustained implementation of cost containment measures.

  • PAT Margin: During the period under review, PAT Margin stood at 52% on the back of revenue growth and sustained implementation of cost containment measures.

  • Total Assets: Total Assets grew YTD by 31% as a result of the 154% increase in cash and cash equivalent and 2% increase in Trade and other receivables.

  • Total Liabilities: This increased by 35% owing to the growth in short term investment by 57.50%, trust funds by 79.17% and sinking funds by 92.25%. . In aggregate, the Group's managed funds grew by 61%.

  • Shareholders' Fund: The Shareholder's wealth grew by 6% YTD on the back of the increased PAT leading to a 6% growth in retained earnings.


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While commenting on the group's performance the Group CEO, Mr. Peter Ashade, had this to say:

"Year 2020 has posed a lot of challenges to the Nigerian economy - as we saw decline in oil prices- the operating environment was also impacted negatively, with the exchange rate becoming more volatile, continued fall in rates in the money market as well as bearish sentiments in the capital market. Our business was not immune to these challenges; however, the Group was able to endure the first quarter of the year. Thanks to our well-articulated and diligent implementation of our plans set out last year, we were able to deliver a 32% year on year increase in revenue and 53% increase in PBT. This increase was generated basically from our margin on investments and the 55% YOY increase achieved on our Fees and commission income as well as a 149% growth in net trading income. Our investment income shrank this quarter due to the drop in returns in the money market.


"As we work into the coming quarters, we are constantly reviewing our strategy in light of the current global pandemic in the wake of COVID-19. As a Group, we were able to invoke our business continue framework which has worked immensely well over the past few weeks as we have been able to stay afloat with our work-force working remotely to ensure the continued operations of our business".


Discussing the result further he stressed 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".

 

Company Update: Following the release of our Q1 2020 result, we shall be hosting an Investors and Analysts conference call in due course to discuss our performance and overall outlook for the next quarter of 2020. The date and further details with respect to the conference call would be circulated in due course.

 

Lagos Nigeria - XX April, 2020 - United Capital Plc, (NSE: UCAP, Bloomberg: UCAP:NL, Financial Times: UCAP:LAG) announced its Unaudited Financial Statements for the period ended March 31, 2020. During the period under review, the Group showed significant growth in key indicators despite the challenging global economic climate. Total Revenue in Q1 2020 soared to N1.92bn  from N1.45bn in Q1 2019, an increase of 32% while PAT grew by 54% YOY. Total Assets grew by 31%, being well financed by a 35% increase in Liabilities and 6% increase in Shareholder's fund.

 

Statement Of Profit Or Loss And Other Comprehensive Income For The Period Ended 31 March 2020

 

  

March  2020

March 2019

N'000

N'000

 Gross Earnings 

1,919,015 

1,451,272

 Investment income  

649,489

771,661

 Fee and commission income 

567,977 

365,589

 Net trading income 

79,416 

31,903

Net Interest Margin

589,528

182,718

 Net operating income  

1,886,411

1,351,871

 

 

 

 Other income 

32,604

101,788

 Net gains/(loss) on financial assets fair valued through profit or loss 

-

(2,387)

 Total Revenue 

1,919,015 

1,451,272

 Personnel expenses 

(324,490)

(246,391)

 Other operating expenses 

(378,216)

(399,305)

 Depreciation and amortization 

(39,904)

(30,085)

Impairment allowance as a result of application of IFRS 9

-

(8,623)

Total Expenses

(742,611)

(684,404)

Profit before income tax 

        1,176,404 

766,868

Income tax expense 

(185,117)

(122,699)

PROFIT FOR THE PERIOD  

991,287

644,169

Other Comprehensive Income Net of Taxes

Items that will not be reclassified subsequently to Profit or Loss:

 

Net Fair value gain/(loss) in Equity Instruments designated as FVTOCI

 

 

 

 

140,495

 

 

 

 

(242,195)

Items that may be reclassified subsequently to Profit or Loss:

 

Net Fair value gain/(loss) in Financial Instruments designated as FVTOCI

 

 

 

 

421,679

Other Comprehensive Income, Net of income tax

140,495

179,484

 Total comprehensive income for the period 

1,131,782

823,653

  

 

 

 Profit for the period attributable to: 

 Equity holders of the Company 

991,287

644,169

 Total comprehensive income attributable to: 

 

 

 Equity holders of the Company 

1,131,782

823,653

  

 

 

 Earnings per share-basic (kobo) 

17

11

 

 

Statement Of Financial Position As At 31 March 2020

 

             

March 2020

December 2019

N'000

N'000

ASSETS 

 

 

Cash and cash equivalents 

76,539,957

30,132,099

Investment in financial assets 

94,061,563

94,142,345

Property, plant and equipment 

338,095

357,118

Intangible assets 

47,299

43,771

Right of use assets

-

312

Trade and other receivables 

26,162,020

25,528,546

Deferred tax assets 

260,184

260,184

TOTAL ASSETS 

197,409,118

150,464,375

LIABILITIES 

 

 

Managed funds 

116,351,923

    72,379,297 

Other borrowed funds 

51,466,470

    50,876,737 

Other liabilities 

6,466,118

      5,400,633 

Current tax liabilities 

1,754,945

      1,569,828 

Deferred tax liabilities 

652,041

         652,041 

TOTAL LIABILITIES 

176,691,497

  130,878,536 

SHAREHOLDERS FUND 

 

 

Share capital 

3,000,000

      3,000,000 

Share Premium 

683,611

         683,611 

Retained earnings 

17,781,909

    16,790,622 

Other reserves 

(747,899)

        (888,394)

TOTAL SHAREHOLDERS' FUND

20,717,621

    19,585,839 

TOTAL LIABILITIES AND SHAREHOLDERS' FUND

197,409,118

        150,464,375 

 

 

Caution Regarding Forward Looking Statements

 

From time to time, the Group makes written and/or oral forward-looking statements, including in this press release and in other communications. In addition, representatives of the Group may make forward-looking statements orally to analysts, investors, the media and others. All such statements are intended to be forward looking statements. Forward looking statements include, but are not limited to, statements regarding the Group's objectives and strategies to achieve them, and the Group's anticipated financial performance. Forward looking statements are typically identified by words such as "will", "should", "believe", "expect", "anticipate", "intend", "estimate", "may" and "could".

 

Any forward-looking statements contained in this presentation represent the views of management only as of the date hereof and are presented for the purpose of assisting the Group's investors and analysts in understanding the Group's financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented and may not be appropriate for other purposes. The Group does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf, except as required under applicable securities legislation

 

The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and observe such restrictions.       

 

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