Purple Group reports 385.4% growth in gross earnings

At the end of its fiscal year 2022, Purple Real Estate Income Plc, popularly known as the Purple Group, reported gross earnings of N20.2 billion, an increase of 385.4 percent from N4.2 billion recorded during the same period in 2021.

Net revenue stood at N2.4 billion, an increase of 36.5 percent year-on-year over N1.8 billion in 2021.

According to the fiscal report, Purple recorded a total other income of N14.5 billion, up by 853.8 percent year-on-year over the full year 2021’s N1.5 billion.

Operating income was N16.9 billion, up by 411.6 percent year-on-year from N3.3 billion in 2021.

“In 2022, Purple Group continued to make operational and financial progress in support of our differentiated strategies. Operationally, the business consistently tweaked its structures to adapt and address various macroeconomic shocks. Underscoring increased resilience of the business, we recorded very strong financial performance despite economic headwinds and increased cost of building materials, power generation and political uncertainty.” Laide Agboola, the chief executive officer, stated.

“During the period, we expanded our investment in technology through, Purple Proptech Limited, which is aimed at democratizing real estate ownership and investment. The company’s investment-tech products had a strong outing in the capital market onboarding over 1,200 first-time retail equity investors via our electronic platform. This platform along with other useful tech developments continues to be refined under our Fractions Brand, which is poised to launch in 2023.

“We also made significant progress on our Purple Lekki and Urban developments. Purple Lekki in particular took huge leaps towards completion as the team sets course for delivery of the retail portion of this landmark mixed-use asset. We expect to complete Purple Lekki, the first IFC EDGE-certified mixed-used building in Nigeria, by mid-year 2023 and the single largest building homogenous floor-sized building in Nigeria. Real estate will continue to play a significant role in the economy, and we look to be at the forefront of that role with a firm footing to facilitate significant growth and higher returns for all our stakeholders.”

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Revenue from the sale of trading properties under development accounted for N4.6 billion from N1.35 billion recorded in 2021, a 242.6 percent increase.

Profit on trading properties increased to N1.5 billion in 2022 from N606 million recorded in 2021.

Fair value gain on investment properties increased to N14.1 billion in 2022 from N1 billion recorded in 2021.

Total expenses recorded was N2.2 billion, a 22.5 percent increase from N1.8 billion recorded in the corresponding year of 2021.

Profit before income tax accounted for N14.7 billion from N1.5 billion recorded in 2021, Profit-after-tax for the 2022 year ended, amounted to N13.1 billion, an increase of 895.9 percent from N1.3 billion recorded in 2021.

Cash and cash equivalents saw a decline of 72.5 percent to N541 million from N1.96 billion recorded in 2021.

Total assets recorded at the end of 2022 was N45.8 billion, a 73.5 percent increase from N26.4 billion in 2021. On the other hand, total liabilities stood at N23.1 billion, from N17.4 billion recorded in 2021.

Shareholders’ funds of N22.8 billion, represented 152.9 percent over N9 billion of the previous year.

“Purple is morphing into a tech-powered real estate and financial services business. At the heart of this integration is Purple Proptech, a wholly owned Purple entity deploying tech-based solutions, with the ultimate goal being to bring down barriers and access to world-class retail, entertainment, financial services and investments. Purple is leveraging on technology, to create a unique ecosystem of interconnected products in the cloud, and offline,” the statement noted.

The group completed its listing on NASD as a Real Estate Company on 23 March 2023 with SDPURPLERE as the NASD Ticker.

Purple Real Estate Income Plc commenced operations in 2014 and is responsible for developing the Maryland Mall, a Grade-A mixed-use centre that boasts the largest outdoor LED screen in West Africa.