Details of financial statements presented to shareholders of Consolidated Discounts Limited (CDL) at the company’s 17th Annual General Meeting (AGM) held Wednesday in Lagos showed that its total assets grew by 26.6 percent to N96.26billion from N76.05billion in the preceding year.
The company achieved a significant milestone in 2012 as total equity position (shareholders funds) of the firm crossed the N25billion market. Total equity position of Consolidated Discounts Limited stood at N26.15billion, up 22.7 percent from N22.63billion in the preceding financial year.
Consolidated Discounts Limited is owned by Union Bank, Mainstreet Bank, Skye Bank, First Bank, and Williams Street Trustees.
Mudashiru Adeleke Shittu, managing director/ chief executive officer, Consolidated Discounts Limited said: “Worthy of note is the fact that we have employed only organic growth in raising the entire shareholders funds to the new height from a base of N200million in 1996. We remain committed to our consistent delivery of returns to our shareholders. Our retained earnings over the years have been the backbone of the company’s funding requirements. While we maintain a consistent culture of dividend payments, we also abide by our need to conserve funds to finance future growth and expansion.”
The IFRS compliant result for the period ended December 31, 2012 showed that the company closed the year on a more profitable note as net profit increased by 16.71 percent to N4.54billion from N3.89billion in the corresponding period of 2011. Comprehensive income increased by 30 percent to N4.73billion from N3.64billion in December 2011.
According to Shittu, “We are doing everything possible within the regulations, within the directive of the board, and within the policies of the board, in line with corporate governance and compliance risk management to ensure that we come out with the best of the results with the satisfaction of every stakeholder.”
He said: “Our performance is very clear. We made N4.54 billion profit, an improvement compared with the preceding year figure. This achievement is despite the difficult terrain in the operating environment. One good thing about Consolidated Discounts Limited is our board. Our board members are very enlightened. Partially all the board members are bank executives; they contribute their quota in terms of professional counseling and policies. That has helped us in long way.”
The board at the meeting got shareholders approval to pay the sum of N2.1billion as dividend payable to all shareholders at the rate of 53kobo per N1 share held.
“Over the past years, risk management has been one of the key strategic pillars we have focused on. Effective risk management is fundamental to Consolidated Discounts Limited business activities. We recognise the importance that stakeholders place on the quality of our risk management and as such we remain committed to ensuring that stakeholder value is adequately protected. Consequently, our strategic focus in risk management has been to ensure that, the right tone is set at the board in terms of establishing a risk culture and setting an appropriate risk appetite which permeates the entire company and drives the business processes. Our risk management processes have continued to prove effective throughout 2012. Executive management remained closely involved in important risk management decisions, which have focused particularly on preserving appropriate levels of liquidity and capital, and effectively managing the risk portfolios. We are happy to report that a measure of the success of this initiative is reflected in a higher Capital Adequacy Ratio (CAR) as well as other superlative risk ratios posted by the group during the period under review,”