In what can best be described as an unexpected development, Courteville Business Solutions Plc announced today that it will no longer be a Capital Market Operator.
In a statement issued to the Nigerian Stock Exchange, the company said the decision followed approval by the Securities and Exchange Commission, SEC.
Prior to this development, the company operated as a Corporate Investment Adviser; conducting securities analysis on behalf of corporate clients while also giving investment recommendations.
What does this mean for the ICT company?
This announcement does not mean that the company is delisting as a quoted company on the NSE. As the company’s Head of Customer Care, Olayimka Aina told Nairametrics through an email interview, Courteville is simply no longer interested in pursuing this line of business.
“Courteville Business Solutions Plc was initially registered as a Capital Market Operator in 2005. However, our business model has changed since 2006 to other businesses. We no longer have a need to hold on to being a Capital Market Operator and Corporate Investment Adviser.” -Courteville
Note that the capital market is the place where funding facilities for medium and long-term investments take place. The capital market is, therefore, consisted of players (otherwise known as operators) who serve as intermediaries between the fund-providers and the fund users. These intermediaries include- Securities Exchanges, Brokers/Dealers, Issuing Houses, Registrars and Investment Advisors.
That said, recall that an earlier analysis by Nairametrics observed that time was running out for Courteville’s business model; no thanks to recent declines in revenue and profitability. In light of this latest move, therefore, it is possible Courteville is choosing to focus do away with unprofitable ventures while focusing only on profitable ones.
Courteville Business Solutions Plc is an e-business solutions and advisory company which was incorporated in 2005. According to its latest (Q1 2018) financial result, revenue declined by 7%; N308 million against N331 million in Q1 2017.
Profit after tax, however, increased by 18%, standing at N23 million as against N20 million in Q1 2017.
The company’s share price is currently trading at 0.20 kobo on the floor of the Nigerian Stock Exchange.