Africa Prudential declares 6.7% profit growth amidst declining revenue

Share registration service provider, Africa Prudential Plc, has reported a modest growth of 6.7 percent in its profit after-tax for Full-Year 2019 despite a fall in turnover.

According to its Unaudited Financial Statements for the Year Ended December 31, 2019, posted on the website of the Nigerian Stock Exchange (NSE), Gross Earnings plummeted by 13 percent to N3.902 billion at FY2018 from N4.486 billion at FY2019.

Profit Before Tax advanced from N2.395 billion at FY2018 to N2.535 billion at FY2019, implying a 5.9 percent growth.

Profit After Tax (PAT) inched up by 6.7 percent, moving from N1.953 billion at FY2018 to N2.084 billion at FY2019.

Africa Prudential was able to turn around the decline in its revenue to post an increase in its PAT by cutting its Finance Costs down tremendously by over 790 percent from N899.411 million at FY2018 to N101.030 million at FY2019.

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Earnings Per Share (EPS) grew from N0.98 at FY2018 to N1.04 in the corresponding period of 2019, translating to a 6.1 percent rise.

The company’s outstanding shares currently stand at N2 billion with a market capitalisation of N8.840 billion. Its dividend yield is 11.79 percent.

Formerly Africa Prudential Registrars Plc, Africa Prudential Plc was incorporated in 2006 as a standard-delivery service provider for corporate organisations in the primary and secondary sectors of the capital market.

Earnings Per Share is the profit that each unit of a company’s ordinary shares  yields  during a particular period. It is simply calculated by dividing the PAT by the company’s total outstanding shares.  Increase in a company’s EPS often reflects an improvement in its bottom-line while a fall, on the other hand, indicates a declining profit.

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