United Capital Plc posts N11.26 Billion Profit for 2021, Propose N1.50 Dividend per Ordinary Share

United Capital Plc (NGX: UCAP) has posted an impressive financial results for the 2021 financial year ending 31 December 2021.

On top of the impressive results, it’s Board has proposed a water watering N1.50 dividend per ordinary share. This will represent a 114% growth in dividend year-on-year (2020: N0.70).

The Investment Banking firm released it Audited Financial Statements earlier today on The Nigerian Exchange Limited.

Gross Earnings was up 40% year-on-year to N18.07 billion, operating PBT grew 53% year-on-year to N12.12 billion.

Total assets grew 104% year-on-year to N453.60 billion while Shareholders’ Funds rose 25% year-on-year to N30.55 billion from N24.43 billion.

Speaking on the audited financial results, Professor Chika Mordi, the Board Chairman stated:

“We are proposing N1.50 dividend for every 50 kobo ordinary share, up 114% over 70 kobo dividend paid last year. This affirms our commitment to wealth creation for our shareholders”.

Commenting on the Group’s performance, the Group Chief Executive Officer, Mr. Peter Ashade, had this to say:

“Our strong performance was driven by exponential growth in business activities across all the market segments that we serve as we successfully navigated a volatile operating environment to create best-in-class solutions for our clients.

United Capital is on a progressive path as witnessed in our strong earnings growth and superior value delivery to shareholders over the years, amongst other metrics that are reflective of high performing organisations.

All stakeholders can be assured of our commitment to sustain our organisational growth trajectory well into the foreseeable future as we navigate the tough operating terrain.

We will continue to pursue developmental activities and actively engage regulatory authorities, investors and relevant stakeholder groups towards deepening the capital market, strengthening the broader financial system and driving financial inclusion as a means of accelerating the economic development of our dear country and empowering its citizens”.

Year-on-year Analysis of the Financial Statements

Statement of Profit or Loss:

Gross Earnings: N18.07 billion in FY 2021, compared to N12.87 billion in FY 2020 (40% growth year-on-year)
Operating Income: N16.24 billion in FY 2021, compared to N12.49 billion in FY 2020 (30% growth year-on-year)
Operating expenses: N5.94 billion in FY 2021, compared to N4.93 billion in FY 2020 (21% growth year-on-year)
Operating Profit Before Tax: N12.12 billion in FY 2021, compared to N7.95 billion in FY 2020 (53% growth year-on-year)
Profit After Tax: N11.26 billion in FY 2021, compared to N7.81 billion in FY 2020 (44% growth year-on-year)
Earnings Per Share: 188 Kobo. (2020: 130kobo). This represents 44% growth year-on-year.

Statement of Financial Position:

Total Assets: N453.60 billion, compared to N222.75 billion as at FY 2020 (104% year-on-year growth)
Total Liabilities: N423.05 billion, compared to N198.32billion as at FY 2020 (113% year-on-year growth)
Shareholders’ Fund: N30.55 billion, compared to N24.43 billion as at FY 2020 (25% year-on-year growth)

Comparing FY 2021 with FY 2020, the following are worthy of note:

Gross Earnings: Total revenue grew by 40% year-on year driven by growth in fee and commission income (+77% year-on-year) and Investment Income (+8% year-on-year)
Cost-to-Income ratio: Operating efficiency improved as cost-to-income ratio declined by 5.38 percentage points largely attributable to growth in revenue (+40% year-on-year) relative to operating expenses (+21%year-on-year)
Operating PBT Margin: Profitability margin improved during the year under review as PBT margin increased by 5.38 percentage points from 61.73% in FY 2020 to 67.11% in FY 2021
PAT Margin: PAT margin also increased, gaining 1.65 percentage point to 62.32% in FY 2021 compared to 60.67% in FY 2020 as PAT increased by 44% year-on-year during the year under review.
Total Assets: The company’s total assets grew by 104% year-on-year on the account of 24% increase in cash and cash equivalents and 151% growth in financial asset investment.
Total Liabilities: United Capital’s total liabilities increased by 113% year-on-year largely driven
by 182% year-on-year increase in manage funds during the year under review
Shareholders’ Fund: United Capital’s Shareholders’ funds grew by 25% year-on-year driven by 33% growth in retained earnings
Proposed Dividend: The Board of Directors proposed a dividend of N1.50 per share, amounting to a total of N9billion dividend to be paid to shareholders upon approval by members at the AGM. The dividend is payable to shareholders whose names appear on the Register of Members at the close of business on March 23, 2022.

About the Company

United Capital Plc (previously called UBA Capital Plc) was incorporated and domiciled in Nigeria, as a Public liability company, on 3 August, 2012, to act as the ultimate holding company for the United Capital Group.

The Company was listed on the Nigerian Stock exchange on 17 January, 2013. The Company changed its name to United Capital Plc following the approval of the resolution by shareholders on the 16th December, 2014.

The principal activities of the Group are mainly the provision of investment banking services, portfolio management services, securities trading and trusteeship.

UCAP has 6,000,000,000 outstanding shares and a market capitalization of N72 Billion.

At the end of trading on Friday, the share price rose by 9.59% to close at N12.00, an All Time High.

The share price of United Capital Plc has now risen by 72.44% over the past one year, 209.32% over two years, 234.86% over three years and 198.37% over 5 years.

A consistent dividend paying company, and one of the best on the Nigerian Exchange, Shareholders will be looking forward to a continuation of this incredible performance.