Africa Prudential records 6% profit drop

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Africa Prudential Plc has announced that it recorded a loss of 6 per cent (N1.04 billion) in its Profit After Tax (PAT) for the period ended September 30th 2020 as against N1.05 billion recorded in the third quarter (Q3) of 2019.

 

According to a filing obtained from the Nigerian Stock Exchange (NSE)’s website, the company stated that the loss was as a result of the 29.61 per cent reduction in revenue from contracts with customers, 5.4 per cent reduction in other income, 3.4 per cent increase in personnel expenses and 17.2 per cent increase in amortization of intangible assets.

The company’s revenue from contracts with customers stood at N860 million, compared to N1.22 billion in Q3 2019, its gross earnings fell by 9 per cent from N2.90 billion to  N2.63 billion while Profit Before Ta

Commenting on the result, the Managing Director/CEO of Africa Prudential, Obong Idiong, noted that while the negative economic impact of the COVID-19 continued to reflect on its traditional income lines, the transition of the company from a traditional Registrar Business to a technology business deploying technology to transform the Registrar, Cooperative, E-Commerce, and Digital Technology play could not have come at a better time.

READ ALSO:‘Why Africa economy needs 360 degree digitalisation approach’

“We are confident that as the Company’s new businesses continue to gather momentum, we will continue to deliver sustainable value to our investors. Among the gradual results of the transformation process is the264 per cent year-on-year growth in Digital Technology Consultancy income. We also grew our investment income by 6 per cent year-on-year through the efficient allocation of investible funds despite the prevailing low interest rate regime.

We will continue to consolidate on our gains in the digital technology space to deliver great value and exceptional experience to clients across all our touch points”, he said.

x (PBT) stood at N1.57 billion, compared to N1.76 billion.

The company’s total liabilities increased by 7.2 per cent year-to-date, owing to 5.3 per cent increase in its customer’s deposits and 2,106.8 per cent rise in creditors and accruals owing to withholding tax payable on client dividend.

Further analysis of the company’s financials showed that shareholder’s wealth mildly declined by 0.2 per cent year-to-date due to 121.9 per cent increase in fair value reserve.

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