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Africa Prudential highlights success of digital technology strategy despite decline in H1 profit before tax.

LAGOS, Nigeria, July 24, 2021 – African Prudential Plc (Bloomberg: AFRIPRUD:NL | Reuters: AFRIPRU.LG) announced its unaudited financial statements for the 6 months to June 2021.

Financial Highlights:

  • Gross Earnings: N1.67 billion, compared to N1.87 billion in HY 2020 (11% YoY Decline);
  • Profit Before Tax: N0.97 billion, compared to N1.22 billion in HY 2020 (20% YoY Decline);
  • Profit After Tax: N0.83 billion, compared to N1.08 billion in HY 2020 (24% YoY Decline);
  • Total Assets: N88.87 billion, compared to N17.73 billion as at FY 2020 (401% YTD Increase);
  • Total Liabilities: N80.71 billion, compared to N9.36 billion as at FY 2020 (762% YTD Increase);
  • Shareholders’ Fund stood at N8.16 billion, a 2% YTD decline from N8.37 billion as at FY 2020.

Commenting on the results, Obong Idiong, Managing Director/Chief Executive Officer said:

“Despite the challenges that we encountered in the first half of the year, we are happy with the milestones that we achieved over the period, which should reflect in stronger earnings in the second half. The decline in H1 revenue reflects the impact of the renegotiation of fee rates of some contracts with customers. In addition, delays in the signing of notable digital consultancy contracts mean that we were unable to report the associated revenues in the first half of the year. We also made a strategic investment in the recently launched Heir Insurance company which should offer fresh opportunities for us to deploy our digital technology service.

Concerning our operating costs, we endured the impact of rising inflation and exchange rate volatility on our operating expenses as these factors contributed to higher development costs associated with our growing digital technology business. Nevertheless, we are committed to the achievement of our strategic aspirations and look forward to reporting the gains from some milestones that we have achieved in the subsequent quarters.

The outlook for the third quarter is positive on the back of the progress we are making in our digital technology business. We are seeing a domino effect of the successful launch of digital technology solutions for a few clients in the first half of the year that have led to contracts to build similar solutions for other clients in the public and private sectors. This should buoy revenues in the third quarter. We are also set to launch an upgrade of a digital solution for annual general meetings in Q3 as well as a new e-commerce platform.“

Following the release of the half-year result, Africa Prudential will host a conference call for investors and analysts on Thursday July 29th, 2021. To obtain the dial-in details, kindly pre-register for the call HERE.

For Further enquiries, please contact Olufemi Adenuga, Chief Financial Officer Africa Prudential at olufemi.adenuga@africaprudential.com.

 

HY1 Financial Statement 2021


 

About Africa Prudential

African Prudential Plc is a registrar, digital technology and investor services firm listed on the Nigeria Exchange Limited (NGX), offering digital technology solutions and services, share registration services, and e-commerce services. The firm is leveraging technology to transform the service experience of businesses and consumers across its various business lines.

The company sets the pace in its industry, bringing technology into the standard share registration model, revolutionizing primary processes, and driving advocacy for regulatory initiatives within the evolving sector. Africa Prudential Plc manages 83 client-registers, made up of over three million shareholders. The company is the most capitalized registrar in the country with share capital of Two billion units.

More information can be found at: https://africaprudential.com/investor-relations/

Media Enquiries: Email Investorrelations@africaprudential.com; ir@arrhenn.com

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

From time to time, the Company makes written and/or oral forward-looking statements, including in this press release and in other communications. In addition, representatives of the Company 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 Company’s objectives and strategies to achieve them, and the Company’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 Company’s investors and analysts in understanding the Company’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 Company 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

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