Wednesday 14 May 2014

Custodian records N4.33 bn profit before tax

By William Jimoh


 
Custodian and Allied Plc, has recorded N4.33 billion profit before taxation for the 2013 financial year, while its earning and Net Asset per share increased to 60 kobo and 325 kobo respectively, said Chairman, Board of Directors of the company.

Chief Ade Ojo, Chairman Board of Directors of the company who disclosed this while addressing shareholders during the 19th Annual General Meeting, AGM, of the company in Lagos, stated that the top line growth experienced by the company was fueled by 20 per cent increase in gross premium income and 38 per cent rise in fees and commission income.

Shareholders of the company also unanimously approved a final divided payout off 11 kobo per share in addition to 5 kobo interim paid earlier in respect of the result achieved during the year, making the total divided for the year 16 kobo per share. According to Ojo, "The anticipated cost savings that were envisaged in the merger manifested in noticeable reductions in underwriting expenses (down 15 per cent) and management expenses (down 8 per cent) in spite of the generous redundancy benefits paid to the disengaged staff."

Speaking, in respect of acquisition of Crusader Nigeria Plc he said, "I am very delighted to report to you today that the acquisition has been successfully completed, all regulatory approvals, including the Court sanction, received.

"As sanctioned by the Court, the company's name has been changed to Custodian and Allied Plc, which is an investment holding company with investments in life and non life insurance subsidiaries, pension fund administrator and a trust company. The company has also been re-c1assified under the 'Other Financial Services' sub sector of the Financial Services Sector of the Nigerian Stock Exchange Official list.

"Custodian shares have since been issued to the erstwhile shareholders of Crusader Nigeria Plc and we have grown from a company with 23,812 shareholders as at December 31st, 2012 to 41,003 as at December 31st, 2013.

On the out look of the company, Ojo noted that the successful integration of the Crusader operations and the resulting strong entity with enviable results are indications that Custodian is truly ready for the future.

"Our strong balance sheet and financial capacity, expanded and diversified product portfolio, operational efficiency and highly professional team will ensure that the company maintains its leadership position and provides superior return on investment to our loyal shareholders.

Some of the leaders of the shareholders' associations including Sir Sunny Nwosu, Mr. Nona Awo, expressed satisfaction with the current development in the operation of the company, just as they enjoined the Custodian Board to expand the representation of minority shareholders on the board of the company.




Source Vanguard

No comments: