NGX Group’s full year operating surplus dips 18.5% to N1.84bn
Nigerian Exchange (NGX) Group reported operating surplus after tax of N1.83 billion in 2020, from N2.25 billion in 2019, which represents a decrease of 18.56 percent, according to its audited financial statements for the period ended December 31, 2020.
The scorecard seen by BusinessDay, which is the NGX Group’s first publicly circulated financial after demutualisation, shows its revenue printed lower by 23.92percent in the review year to N3.76billion from N4.954billion in 2019. Operating Surplus before tax at N1.909billion in 2020 represents 17percent decrease from N2.3 billion in 2019.
The NGX Group recently held its first annual general meeting which was the first AGM of the Group as a demutualised, shareholder-own and for-profit entity.
As the Group progresses its plans to list on Nigerian Exchange, it looks forward to welcoming a broader group of investors to share in its journey. Though, total operating income of N6.018 billion as against N7.782billion in 2019 implies a decrease by 22.67 percent.
Further look at the NGX Group results show that the share of profit of equity accounted investors rose to N2.003 billion from N1.531 billion in 2019, representing an increase of 30.83percent.
Looking ahead, NGX Group said it’s wholly owned subsidiaries – Nigerian Exchange Limited, NGX Regulation, and NGX Real Estate – will continue to advance the realisation of its vision to be Africa’s leading integrated capital market infrastructure provider.
Group managing director/CEO, NGX Group Plc, Oscar Onyema said at the Group’s annual general meeting recently where shareholders of the NGX Group voted in support of the resolutions presented by the Group at its 60th AGM that the 2020 results reflect the challenging macroeconomic and market conditions, “as well as operational resilience of the Group with income and resulting surplus after tax valued at N6.02 billion and N1.84 billion, respectively.”
Remarkably, NGX Group’s personal, operating and total expenses were on the decrease in 2020. Personnel Expense at N3.240 billion as against N3.694 billion in 2019 implies a dip of 12.29 percent.
Operating expenses of N2.223 billion in 2020 implies a decrease by 19.98 percent from N2.778 billion. Total expenses of N6.112 billion from N7.015 billion in 2019, represents 12.87 percent decrease.
“In the context of COVID-19 pandemic, we maintained tight cost controls, which reduced expenses by 13 percent despite investments in technology that allowed us to operate remotely with zero downtime. The Group ended Year 2020 in a sound financial position with net asset growth of over 10 percent to N31.28 billion”, Onyema said.
Total Asset at N35.106 billion from N32.181 billion in 2019 implies an increase by 9.09 percent in the review year; while Shareholders’ Fund of N31.276 billion in 2020 as against N28.426billion in 2019 represents an increase of 10.03 percent.
Abimbola Ogunbanjo, Group chairman, NGX Group Plc had told shareholders that “Despite the global pandemic and other economic shocks, it is indeed noteworthy that we have already begun to actualise the benefits of demutualisation including the alignment of stakeholders’ interests in the value created by the new Group under a revised gorporate governance framework.”
“We received approval of new equity-based incentive schemes for employees which are in line with the authority granted to directors by then members of NSE at an extraordinary general meeting conducted in March 2020 and adhere to global best practices allowing us to attract and retain the best talent. Today, I am more confident than ever that the Group is well-positioned to deliver value to shareholders as we move into a new growth phase,” Ogunbanjo further said.