New Telegraph

Africa Prudential records 24% decline in profit as revenue sheds 11%

Africa Prudential Plc, one of Nigeria’s leading Registrar Company, has announced a 24 per cent decline in profit after tax in its six months financial period ended June 30, 2021. The investor services and business support solutions provider with close to five decades’ experience in the Nigerian Capital Market, also reported that its revenue dropped by 11 per cent in the period. Gross earnings or revenue declined by 11 per cent from N1.87 billion to N1.67 billion while profit after tax dipped by 24 per cent from N1.08 billion in half 2020 to N0.83 billion in 2021.

It is also not good news for shareholders of the company as Earnings Per Share dropped to 41 kobo from 54 kobo in the previous half year period ended June 2020. Explaining the rationale behind the performance, Chief Financial Officer of the company, Olufemi Adenuga, said revenue from contracts with customers contracted by 12% year-on-year on the back of a significant renegotiation of fees rate by customers along our 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 percent. “While the company was bullish with 436% increase in the interest realized from bonds and also a 193% increase in the interest realised from short term deposits, there was a slight 10% yearon- 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,” he noted.

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