Financial services company, VFD Group reported a profit after tax (PAT) of N547.38 million for the year ended 31 December 2018. This represents the first profit the company has recorded in the last three years.
The surge in the company’s PAT was as a result of the increase in earnings from fees and commission, dividend income and other income, the figures from the Group’s financial statement as analyzed by BusinessDay show.
In the review year, VFD Group reported a 51.9 percent increase in dividend income from N33 million it reported in 2017 to N64.55 million in 2018.
Its earnings from other sources of income increased to N1 billion from the N4.47 million it reported the year before. This consist of trading income of N4.8 million, gains from disposal of shares at N174.1 million, N870.12 million from business support to West Africa Drilling Company Limited and others at N24.1 million.
“We surpassed our 2018 set target with more than 100 percent and so it was a fantastic year and we are looking forward to a more prosperous 2019,” Niyi Adenubi, Executive Director, Institutional Business and Investor Relations, VFD Group told BusinessDay at the third Annual General Meeting (AGM) on Friday.
According to the company, a combined block of 1.6 billion ordinary shares of NEM Insurance Plc, representing about 30 percent of the Insurance Company’s issued share capital, was sold to new shareholders in 2018, sponsored by the Directors of the insurance company.
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VFD Group revealed that the decision to exit the Insurance Company was reached following an inconclusive discussion with the management of the company on modalities for working together in pursuing its vision.
A further analysis of the company’s 2018 financials reveled it had total assets of N19 billion for the review period, it total liabilities stood at N17.51 billion while it total equity was at N1.46 billion.
Analysis of its five years financials revealed, the 2018 PAT is the company’s all time highest.
In 2017 and the year before, the company reported loss after tax of N66 million and N74.47 million respectively, this is compared to its 2015 and 2014 PAT of N38.39 million and N24.22million respectively.
“Going forward you will see exceptional return from VFD group, my pledge is that, any one that has not invested in VFD Group as at now should be thinking very strongly in that direction because we have plans to list on NSE in 2022,” Nonso Okpala, the Managing Director/CEO of VFD Group told BusinessDay on the sidelines of the company’s first AGM post becoming public limited company in February 2019
In the first quarter of 2019, VFD announced its conversion from a Private Limited Company to a public company. This took effect immediately, following the company’s successful raising of N2.8bn through a public offering that saw the number of shareholders increase by over 100 percent.
“The company has recorded a lot of achievements in the last 12 months and commendably we transformed from being a limited company to a Plc as a demonstration to show that we are doing something right,” Olatunde Busari (SAN), chairman of VFD Group, said.
“We went to the market with the intention of rising N2 billion; N1 billion by rights issue and N1 billion by private placement, they were both oversubscribed, that means the shareholders have confidence in the company and in its directors,” Busari added
VFD Group was incorporated on 7th July 2009 and commenced business operations in 2011. The company’s subsidiaries include VFD Microfinance Bank, Anchoria Asset Management, and Germaine Auto Center.
“We made an application to the CBN to obtain a regional banking license, and we are very optimistic that it will turn in appropriately within this year and all everything been equal we plan to commence operations in the first quarter of next year,” Okpala said.
Endurance Okafor
