As the world adjusts to the new realities set by the Covid-19 pandemic, VFD Group Plc said it has proven the strength of its business model and remains confident that the Group is well equipped to face any challenges while delivering comparable results.
Olatunde Busari, Chairman, VFD Group Plc who noted this at the 5th Annual General Meeting of company held in Lagos on Monday, May 31, further told shareholders that looking ahead to the company’s priorities for 2021, “we will continue with our progress towards becoming a commercially viable proprietary investment company with global influence focused on building positive and socially conscious ecosystem.”
“Hence, cross-border expansion, investment in new industries that helps us aggregate service offerings of our existing portfolio companies and collaborations with companies that provide platform for exponential growth”, the chairman said.
VFD Group Plc is a proprietary investment company that focuses on building positive and socially conscious ecosystems by aggregating potentially viable businesses with the objective of creating innovative products and solutions that are accessible to the everyday Nigerian citizen and entrepreneur.
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“It would be cliché to say that 2020 was a year like none other, but this is true, nonetheless. As with many companies, the Covid-19 global pandemic presented significant challenges during the year however, I am pleased to report that VFD Group Plc adapted well to those challenges while creating a roadmap towards building a resilient brand”, Busari stated.
At the meeting, the shareholders received and adopted the Audited Financial Statements of the company for the year ended December 31, 2020, together with the Reports of Directors, Auditors and Audit Committee thereon.
Among other items presented for shareholders considerations at the meeting, they also approved dividend of N1.014billion for the financial year ended December 31, 2020, following the Directors’ recommendation of a dividend of N8.51kobo for every ordinary share of 50k each to all shareholders whose names are in the Company’s Register of Members as of May 14, 2021.
VFD Group Plc delivered yet again, record levels of revenue and profit. Gross earnings grew by 97percent to N6.7billion (2019: N3.4billion), while the Group’s profit before tax (PBT) grew year-on-year by 173percent to close at N4.1billion (2019: N1.5billion).
The higher growth rate of PBT vis-a-vis gross earnings was a result of the VFD Group Plc ability to keep expense growth rate lower than earnings; as operating expense for the year grew by 37percent to N2.6billion (2019: N1.9billion). Growing year on year by 85percent, total asset closed at N81.7billion (2019: N44.2billion), a reflection of the Group’s ambition.
Nonso Okpala, Group Managing Director/CEO, VFD Group Plc said “2020 was another exceptional year for the Group as we delivered on all key financial indicators, a validation of the Group’s strategic direction.”
“Leveraging on the achievements recorded in 2020, we have begun taking actions that bring us closer to our strategic objectives”, Okpala told shareholders at the meeting.
He noted that the major factors that contributed to the company’s landmark financial performance in 2020 include: investment income from Eurobond portfolio, interest income from lending activities, earnings from other subsidiaries, and FX valuation gain.
“In the year under review, the Group embarked on varying activities that are important to the journey ahead. We continue to expand our business focus into industries & sectors that allow us to build a second-to-none ecosystem. During the year, we finalized acquisition of significant stake in Anchoria Investment Securities Limited and Atiat Insurance Brokers Limited. Leveraging on their expertise and structure, and layering our own competencies, these two companies provide access to new markets and allow us ring-fence customer value chain as we grow”, Busari noted.
“We are committed to good corporate governance and ethical business practices, promoting the long-term interests of shareholders. In 2020, our social responsibility plan prioritized providing relief to communities and families within our business areas most affected by the impact of Covid-19”, he added.
