United Capital, One of Nigeria’s top players in the investment industry hosted its Annual General Meeting for the year 2019 in Lagos recently. While engaging its shareholders and auditors, the group disclosed its financial performance for the full year 2018 as well as its prospects for the year 2019.
The Chairman of the board of United Capital,Chika Mordi while speaking at the AGM disclosed that “United Capital made good progress in its financial performance for 2018. The Group generated gross earnings of N9.3bn and Profit-Before-Tax of N6.2bn, despite the challenging macro-economic and operating conditions”.
“This year, we switched to the IFRS 9 standards which led to a 6% decline in shareholders’ funds. Total assets improved from N136.5bn to N148.7bn due to growth in funds management, which is a reflection of our commitment to deliver value at all times.” Mordi added.
He stated that the performance of the financial markets was broadly bearish in 2018, due to the increased local political tension, interest rate hikes by the US Fed and a spike in the US treasury yields but affirmed that “Despite the challenging operating global and local environment, we continue to strive hard to deliver on our set goals and are optimistic that we will further improve in 2019”.
The Group CEO of United Capital, Peter Ashade while speaking on the group’s outlook for the year 2019 said “Beyond our primary mandate of providing financial and investment solutions, we are also an agent for economic development. We are committed to collaborating with agencies such as Bank of Industry and other DFIs towards promoting development initiatives of the Federal Government as we seek to accelerate Nigeria’s economic growth and recovery”.
Businessday’s analysis of the company’s financials for the full year 2018 showed that the United capital group’s gross earnings experienced marginal growth by 3.37 percent having had N8.91 billion in 2017 and N9.25 billion in 2018.
The group’s profit before tax grew by 12.72 percent recording N6.2 billion in 2018 as against the N5.5 billion recorded in 2017. Furthermore, the group’s total assets grew by 8.82 percent to N148 billion in 2018 while its total liabilities grew by 10 percent to N132 billion in 2018.
While the group recorded growth it also recorded some losses as well. The group’s total comprehensive income for the year experienced a decline by 21.8 percent having had N5.5 billion in 2017 and N4.36 billion in 2018. Furthermore, the group’s profit for the year experienced a 0.68 percent decline from N4.36 billion in 2017 to N4.33 billion in 2018. Its total shareholders’ fund as well dropped by 6.25 percent in 2018 to 15.8 billion.
Giving the External Auditors report on behalf of Deloitte & Touche, Yetunde Odetayo, FCA stated that United Capital for the full year 2018 kept the proper books of account and aligned with the provisions of the Companies and allied matters act as well as the financial reporting council act.
Chairman of the Statutory Audit Committee, Paul Olele said the accounting and reporting policies of the company were consistent with legal requirements and ethical practices.
Gbemi Faminu
