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Custodian Investment posts 15% plunge in profit amidst rocketing operating expenses, declares N0.35 dividend



Custodian Investment posts 15% plunge in profit amidst rocketing operating expenses, declares N0.35 dividend

Custodian Investment Plc has recorded a 15% drop translating to N1.101 billion in after-tax profit for Full Year 2019.

This and other details are published in its Consolidated and Separate Financial Statements for the Year Ended 31 December 2019, posted on the website of the Nigerian Stock Exchange (NSE) Friday.

The Gross Revenue of Custodian Investment advanced by 22.3%, climbing up from N50.212 billion at FY2018 to N61.417 billion at FY2019.

Profit Before Income Tax Expense shrank to N8.070 billion at FY2019 from the N9.501 billion recorded in the corresponding period of 2018, translating to 15.1% fall.

Custodian Investment’s Profit for the Year dipped by 15.5% from N7.113 billion at FY2018 to N6.012 in the same period last year.

Earnings Per Share (EPS) slipped from N1.16 at FY2018 to N0.97 in the period under review, representing a depreciation of 16.4%.

Custodian Investment’s underwhelming performance could be pinned down to its rising Operating Expenses which escalated from N34.292 billion at FY2018 to N51.328 billion at FY2019, signalling a 49.7% increase.

Read also: MTNN Full-Year profit up by 39% to N202bn, declares N101bn dividend

Custodian Investment’s management should consider cutting down heavily on its expenditure in the nearest future in order to improve its operational efficiency at the same time deliver better results to investors.

With outstanding shares totalling 5,881,864,195, Custodian Investment’s market capitalisation as of today is in excess of N32.056 billion.

Its dividend yield is 8.26% with a Price to Earnings (P/E) ratio of 5.59.

Custodian Investment is currently trading above its fair value.

The firm has declared a final dividend of N0.35 per share for FY2019, having paid an interim dividend of N0.10 per share last year.

The dividend is payable to shareholders whose names appear on Custodian Investment’s register of members as of the close of business on 2ns April 2020.

The register will be closed from 3rd to 9th April 2020, preparatory to dividend payment on 15th April 2020.

Potential investors seeking to benefit from the dividend payout may consider buying Custodian Investment’s stocks on or before the qualification date, 2nd April 2020.

Custodian Investment closed trade on the NSE on Friday at N5.45 per share.

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 Profit After Tax 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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