Africa Prudential posts 19% rise in half-year profit

Africa Prudential Plc has reported an increase of 19 percent in its profit before tax for the first half of this year, compared to the same period a year earlier.

The company said the profit rise provided further evidence of gains from its diversification into digital technology solutions while reinventing its traditional registrar business.

Its profit before tax rose to N1.16 billion from N0.97 billion in the half-year of 2021, while its profit after tax increased to N0.94 billion from N0.83 billion, according to a statement.

Its gross earnings increased by 19 percent to N1.99 billion in the first half of 2022 from N1.67 billion in the same period of 2021.

“Despite the challenging business environment that we encountered in the first half of the year, our diversification strategy underpinned the growth in revenues and profits recorded over the period,” said Obong Idiong, managing director/chief executive officer of Africa Prudential Plc.

According to him, the 355 percent growth in digital technology income reflects the effectiveness of the company’s strategic shift to a digital technology solutions provider.

“And we remain positive about the potential growth of this business line over the medium to long term as we sign/execute more digital consultancy contracts,” Idiong said. “We continue to observe the impact of our deliberate effort to enhance our traditional mono revenue lines and turn them into multiple income lines as we innovate to deliver value to our customers.”

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The company’s total assets rose to N38.18 billion in June from N15.76 billion at the end of 2021, showing a 142 percent year-to-date increase.

Its total liabilities increased to N29.49billion from N6.99 billion, indicating a 322 percent year-to-date increase.

Shareholders’ fund stood at N8.69 billion, a 1 percent year-to-date decline from N8.77 billion at the end of last year.

“Concerning our operating costs, in addition to completing some investment in infrastructure over the period, we endured the impact of rising inflation and exchange rate volatility on our operating expenses,” Idiong said.

According to him, these factors contributed to higher development costs associated with their growing digital technology business.

“The outlook for the second half of the year is positive and remains driven by the progress we are making in our digital technology business. We anticipate a domino effect of the successful launch of our digital technology solutions, leading to contracts to build bespoke solutions for prospective clients in the public and private sectors,” he said.

Idiong said while the macroeconomic environment remained challenging in a pre-election year, “we remain focused on executing on our growth strategy, employing the best tools available to meet the expectations of our shareholders and other stakeholders even as we work towards achieving a better result for the second half of 2022”.

Africa Prudential is a registrar, business solutions, and investor services firm listed on the Nigerian Exchange Limited, offering digital technology solutions and services, share registration services, and e-commerce services, according to the statement.

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