Business

NGX Group’s PAT dips by 40.6 as board declares 1st dividend after demutualisation

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2 years ago

The Nigerian Exchange Group Plc has announced a 45.9 per cent decline in its Profit after the deduction of income tax for the first half of the year 2023.

According to its unaudited results for the half year ended 30 June 2023, NGX Group’s Profit after income tax declined by 45.9 per cent to N444.1 million from N820.2 million. This also resulted in a decline in profit after-tax margin to 12.03 per cent from 19.45 per cent recorded in June 2022.

Also the Profit before income tax of the Group declined by 40.6 er cent to N726 million in June 2023 from N1,223.2 million in the corresponding period in 2022.

As a result of 16.3 per cent decline in revenue (Year-on-Year), NGX Group made a 33.3 per cent decline in Operating profit of N1.076 million in June 2023 from N1.613.1 million in June 2022.

Speaking on the financial result, Mr Oscar Onyema, the Group Managing Director/Chief Executive Officer, said: “While our half-year financial results for 2023 may reflect the impact of economic headwinds, NGX Group demonstrated resilience by recording a profit before tax of N0.7 billion. We are optimistic that with market friendly pronouncements already made by the new government, trading and listing activities will continue the positive impact experienced in June 2023.”

Also the Group has announced an interim dividend of 25 search kobo per ordinary share of 50 search kobo each, distributable to shareholders for the first half of financial year 2023.

This dividend, which is the first since the de- mutualisation of the Nigerian Stock Exchange, will be paid to shareholders whose names appear in the Shareholders’ Register as of close of business Monday, July 31, 2023.

Onyema noted that the dividend declaration was consistent with the ‘s strategic objective to maximise shareholder value. “The Board of Directors has consented to an interim dividend of N0.25 Kobo per ordinary share of 50 Kobo. This translates to a total payout of N495,532,893.

“This initiative underscores better flow through of dividend from an associate company and first-time dividend payment from our flagship subsidiary. It also emphasizes our continued commitment to working collaboratively with our shareholders and other stakeholders in creating and distributing value, even in challenging market conditions”.

Further analysis of the financial statements of the company showed that Gross earnings of the Group recorded a decrease of 12.5 per cent to N3.70 billion from N4.22 billion as of June 2022, while other income increased by 24.9 per cent to N490 million from N393 million in the same period.

Also Revenue decreased by 16.3 per cenr to N3.2 billion in June 2023 from N3.82 billion recorded in June 2022. This was driven by 14.6 per cent decline in treasury investment income to N869 million in June 2023 relative to N1,017.4 million in the comparative period in 2022, primarily driven by a comparative reduction in our treasury holdings year over year.

Also transaction fees dipped by 21.2 per cent to N1,830 million in June 2023 from N2,320.7 million recorded in June 2022 due to a drop in trading activities in Nigerian Exchange Limited.

However, the Group increased it’s listing fees by 6.7 per cent increase to N388.1 million in June 2023 from N363.8 million in June 2022. This is buoyed by improved listing on the Exchange in the first half of 2023 relative to the first half of 2022.

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