Connect with us


United Capital slammed with N260m lawsuits, hit with regulatory fine



United Capital, led by Peter Ashade, faces an operational risk as the asset management and securities trading company is dragged into lawsuits that could lead to a financial loss.

Ripples Nigeria gathered that United Capital is involved in court cases that could result in the company losing N260 million.

These lawsuits are for the financial period of 2022, however, are ongoing litigations. It was learnt that the claims from the cases are more than the N152 million litigation claims against United Capital in 2021.

“The Group is involved in cases with claims amounting to N260m (2021: N152m). Directors are of the opinion that the possibility of an outflow of resources embodying economic benefit is remote and as such no provision is required,” United Capital said in the firm’s financial statement obtained on Tuesday.

Aside from the lawsuits the company is facing, United Capital was also fined by the capital market regulator, the Securities and Exchange Commission.

The Securities and Exchange Commission fined United Capital N12.18 million for failing to submit the post listing bond issue on behalf of its client with the capital market regulator as at when due.

Read also:United Capital liabilities rise, as directors propose N0.70k dividend

Ripples Nigeria learnt that the fine increased from the N3 million United Capital received in 2021, as the board of the firm, led by Chika Mordi, fail to tame United Capital’s operational violations, which is affecting the firm’s earnings.

In 2022, United Capital suffered a -14.26 per cent decline in profit after tax, which represents a drop of N1.60 billion in net profit, from which dividends are paid to company shareholders.

United Capital’s net profit fell to N9.65 billion at the end of December 2022, failing to surpass the N11.25 billion the company reported the year before.

The financial services firm posted N26.89 billion gross earnings last year, in contrast to the N18.06 billion generated in 2021.

Amid rising litigation claims and regulatory fine against United Capital, coupled with declining net profit, the company was unable to increase dividend payout to its shareholders for the financial period of 2022.

The board offered N1.50 kobo per share as dividend payout to shareholders for the operating period of last year, which is the same amount it paid to them in 2021.

Join the conversation


Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now