Nigeria Exchange Group Plc has released its FY 2021 results revealing a profit of N2.25 billion, representing a 22% growth Y-o-Y, as revenue hits N5.78 billion.
Despite higher inflation, investors found the Nigerian stock market attractive to hedge against back-to-back increases in inflation. Hence the financial services company was able to benefit from investors’ interest in shares of quoted companies.
Also, real interest rate on investments has been negative as rates continue to be below inflation.
Key highlights
- A cursory view of the result shows that the Group’s revenue was driven largely by transaction fees which delivered revenue of N2.90 billion, up 2.1% and treasury investment income with revenue of N1.34 billion, up 4.9%. Other line items that boosted revenue were listing fees, entrance levies, rental income, and other fees which raked in N1.54 billion combined during the period.
- All revenue segments delivered a total revenue of N5.78 billion in the full-year period compared to N5.03 billion in the same period of 2020.
- In addition, the company also made money from technology income, other sub-lease income and penalty fees, as well as, Market Data income.
- NGX Group Plc full-year revenue performance was subdued by high operating expenses which grew 22%, as the company spent over almost double the amount in 2020 on ERP software upgrade, demutualization and x-Issuer portal projects.
- Repairs and maintenance which made up the bulk of operating expenses rose by 177% from N192 million to N534 million.
- NGX Group Plc’s total assets are now at N37.87 billion, as net assets grew by 9.07% to N34.11 billion.
What the company is saying
- Commenting on the result, CEO and Group Managing Director, Oscar Onyema, OON, said the NGX Group, in 2021, focused on formulating and executing the strategy of the Holding company, which includes building multiple businesses across the entire capital market value chain with diversified revenues as well as strategic and operational flexibility.
- “Gross earnings growth of 13.0% coupled with after-tax profit growth of 22.2% is an encouraging start to our journey as an investment holding company”, he said.
- He also stated that the company’s focus going forward would be on strengthening its capital structure and being active in every sphere of the capital markets value chain in Nigeria, while “growing our presence across Africa as a leading integrated market infrastructure provider; optimising our current investments and making new strategic investments and recruiting top talents to execute our strategy”.
NGX Group Plc has an Earnings per share for the period of N1.13. The company last traded at N20.80 per share, a 4.52% growth from N19.90 year-to-date.
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