facts behind the figures - nigerian stock exchange disclosure/oando plc q3 results 2013.pdf ·...

Facts Behind the Figures

Wednesday, April 2, 2014

Non-financial Information

• Company Brief: Africa Prudential Registrars is a leading share registration service provider

in Nigeria, it ranks third in its niche market in terms of number of clients, total shareholder

base and market share. However, the company ranks No.1 in terms of automation and

innovation among all corporate registrars in Nigeria.

Africa Prudential Registrars has been a pacesetter in the infusion of technology to the

traditional Registrars' way of doing business. Africa Prudential Registrars was the first outfit

in its niche to adopt e-Stock software application in Nigeria, this helped grow clientele

base from 20 at the end of 2006 to 46 companies in 2014.

The company was registered by SEC in September 26, 2006. The certificate had never

been revoked. It was incorporated on the 23rd March, 2006 and operates RC number

649007.

• Our Business: The Company is thoroughbred in share registration business in Nigeria. With

close to 40 years of share registration experience in the Nigerian Capital Market, the

company has been able to participate in various offers, including IPO, Rights Issue,

Debenture, State and Federal Government Bonds, etc.


• Our Vision: “To be the undisputed, leading and dominant provider of share registration

services in Africa”

• Our Mission: “We shall be a role model in creating superior value for all stakeholders, abiding

by the utmost professional and ethical standards, and building an enduring institution”

• Our People: Africa Prudential makes it its paramount objective to hire individuals based on

standard of merit and competence. Also, we uphold a sound culture of providing continued

development and training for our Staff to address knowledge gaps and provide new skill sets

along the Company’s lines of responsibilities. Annually, local and foreign trainings are

identified for staff and followed through in accordance with an approved training plan

meant to ensure that this objective is achieved. Africa Prudential encourages easy

interaction between Management and other staff of the Company so as to foster an

atmosphere of warmth at work and also to kindle the necessary synergy required for our

continual success.

• Growth in Clientele Base:

At take-over by Mgt; 2006 Currently; 2014

20 Client Companies 46 Client Companies


ENTITY ACTIVITY SINCE SPIN-OFF (NON-FINANCIAL)

• Listing on the NSE: The Company became the first and only registrar firm to be listed on the NSE when its 1,000,000,000 ordinary shares of 50 kobo each was admitted into the official listing at an opening price of N1.59k on January 11, 2013. The strategic intent is to enable a wider shareholder participation and fluidity in transacting on the Company’s shares.

• Board of Directors: The current Board is made up of Six (6) Directors, of whom the Managing Director/CEO (Registrar) is the only executive director. Board members are professionals and business men with vast experience and credible track records. To enhance corporate governance, Board sub-committees are constituted to help the Board properly assess management reports, proposals and oversight functions and make

recommendations to the main Board. Currently, the Board has 2 standing committees namely; Board Audit/Governance and Board Finance and Investment Committee.

• Office Relocation: Our registered office is 220B Ikorodu Road, Palmgrove, Lagos, a location which we have strategically chosen for easy accessibility. The company relocated from its old office on Broad Street, Lagos in 2012.



• Corporate Governance Practice: We have implemented corporate governance policies and standards to encourage good and transparent corporate governance framework to avoid conflicts of interests between all stakeholders whilst promoting ethical business practices. We have consistently reviewed our systems and operations in order to ensure compliance with the guidelines and directives of the Securities and Exchange

Commission, Nigeria Stock Exchange, the statutory requirements of the Companies and Allied Matters Act, CAP C20, LFN 2004.

• I.T Cut over/Data Center Set-up: Africa Prudential Registrars has been a pacesetter in the infusion of technology to the conventional Share Registration model. The company now boasts of an international standard IT infrastructure, having cut-over from shared

resources with its erstwhile parent company.

• Acquisition of UAC Registrars: In 2013, the Company acquired UAC Registrars Ltd, the oldest non-bank affiliated registrar outfit in Nigeria. This acquisition lends further credence to our aim to be the leading Registrar outfit in Nigeria and indeed sub Saharan Africa. The transaction helped grow our business inorganically by adding on four client companies

with aggregate shareholder base of over 250,000.



• Right Issue: The Company conducted a Right Issue of 1,000,000,000 Ordinary Shares in Q4 of

2013. The offer recorded 245% subscription, largely due to improved investors’ confidence in the

abilities of the Company’s crop of directors to deliver impressive returns.

• Improved Customer/Investor interaction: We have committed more resources to improving our

channels for interaction with our customers, shareholders, and investors. We are available and

attend to enquiries via our website and portal, e-mail services, Interactive voice response (IVR)

telephony, and the social media.

• Market Share: Currently there are 197 companies listed on the Nigerian Stock Exchange (NSE),

out of which 27 (14%) are managed by APR Plc. In addition to 27 listed, there are 19 others

which are not currently listed, making a total of 46 client companies managed by APR Plc.

Client company Analysis as at 31 December 2013

Number of client companies listed on NSE 27

Number of client companies not listed 19

Total number of client companies 46

Aggregate number of active companies

listed on the NSE 197

APR Plc

17%

Over 21 other

Registrars

83%

Market share of Listed Companies on the NSE

Comprehensive Income & Profit 31-Dec-13 GROUP

31-Dec-13 COMPANY

31-Dec-12 COMPANY

Change % COMPANY

COMPREHENSIVE INCOME & PROFIT TREND

(N’million)

Revenue 1,854,276 1,489,015 1,034,068 44%

Registrar Fee Income 774,721 658,085 95,897 -13%

Investment Income 937,730 724,073 828,747 586%

Other Gains & Losses 141,825 106,857 109,424 -2%

Expenses 642,090 523,777 366,526 43%

Profit after Tax 914,456 758,859 561,652 -13%

EFFICIENCY AND RETURN Profit Margin 49% 51% 54%

Return on Average Equity (%) 21% 23% 27%

Return on Average Assets (%) 6% 7% 7%

Financial Position & Risk 31-Dec-13 31-Dec-13 31-Dec-12 Change %

FINANCIAL POSITION & TREND (N’million)

Total Assets 16,424,202 14,141,946 8,426,237 95%

Total Deposits 11,202,446 9,132,901 5,480,483 104%

Net Assets 4,333,482 4,275,174 2,369,232 83%

BUSINESS CAPACITY RATIOS

Capital Adequacy Ratio 26% 30% 28%

Cost to Income 35% 35% 35%

FY 2013 Financial Highlights

• Strong revenue growth, up by 44% YoY with

a 3year CAGR of 35%.

• A more balanced mix in 2013, as Registrar

fees and income grew considerably

thereby reducing investment income

contribution in the mix.

• Expenses grew by 43%, however profitability

still remained strong in 2013.

Income Analysis

Revenue by income type

Expenses by type

Revenue trend (N’bn)

8

0.61

1.03

1.49

FY11 FY12 FY13

35% CAGR

9% 9%

44%

80% 80%

49%

11% 11% 7%

0%

20%

40%

60%

80%

100%

FY11 FY12 FY13

Other gains

and lossess

Investment

Income

Registrar

Fee Income

(11.5)

4.5

(144.5)

(83.0)

(344.3)

(272.3)

(23.3) (15.6)

(350.0)

(250.0)

(150.0)

(50.0)

50.0

FY13 FY12

Net reversal of impairment Personnel expenses

Other expenses Depreciation and amortization


Profitability

Return on Avg. Equity Return on Avg. Assets

Operating Income (N’Mn) Profit after Tax (N’Mn)

• Operating income grew by a significant

586% YoY

– Driven by better pricing in investment securities

• N759 mn recorded as profit for the year,

35% increase over the prior period last

year.

• Robust return to shareholders with an ROE

of 23%; ROA also solid at 7%

9

65 96

658

-100

100

300

500

700

FY11 FY12 FY13

562

759

FY12 FY13

26.8%

22.8%

FY12 FY13

6.8%

6.7%

FY12 FY13


Profit Drivers

Profit After Tax Margin Profit Before Tax Margin

Cost-to-Income Ratio • Improving Profit Before Tax Margin

and cost-to-income ratio. Overall, profitability remains fairly stable over the year.

10

54.3% 51.0% 49.3%

0.0%

20.0%

40.0%

60.0%

FY'12 COY FY'13 COY FY'13 GRP

64.55% 64.84% 65.37%

0.00%

20.00%

40.00%

60.00%

80.00%


35.4% 35.2% 34.6%

0.0%

20.0%

40.0%



76%

20%

3% 0% 0%

Financial Position

FY13 COY

Total Assets (N’bn) Total Equity to Total Assets (N’trn)

Total Fixed Assets Mix

FY13 GRP

• Strong asset base, aggregating

N14.1billion

• On the Group level, balance

sheet footing is stronger at N16.4

billion.

11

16.4

14.1

8.4

0.0

10.0

20.0

FY'13 GRP FY'13 COY FY'12 COY

26.4%

30.2% 28.1%

22.1%

0.0%

20.0%

40.0%

FY13 GRP FY13 COY FY12 COY FY11 COY

3.5%

85.6%

0.0% 0.2%

10.7%

PP&E

Deposit for

investment

Investment

in subsidiary

Intangible

asset

Goodwill


Deposit Portfolio

Deposit Book (N’trn) Deposit Mix

• Deposit growth of 21.4% achieved YoY

• Generated largely from cheap sources

• Cheap deposits make up about 80%

12

11.2

9.1

5.5

0.0

2.0

4.0

6.0

8.0

10.0

12.0

FY13 GRP FY13 COY FY12 COY

88.27% 85.62% 85.35%

4.95% 6.07%

10.94% 4.93% 6.04% 0.00%

FY13 GRP FY13 COY FY12 COY

others

Brokerage

Bond Interest

Return money

Dividend


13

Thank you

Summary Historical Financial Results

FY 2013 GROUP FY 2013 COY FY 2012 COY

Key P & L Line (N'000)

Revenue 1,854,276 1,489,015 1,034,068

Registrars Fees Income 774,721 658,085 95,897

Investment Income 937,730 724,073 828,747

Other gains & losses 141,825 106,857 109,424

Total expenses (642,090) (523,577) (366,526)

Profit before tax 1,212,186 965,438 667,542

Profit after tax 914,456 758,859 561,652

Key Balance Sheet Line Items

Total assets 16,424,202 14,141,946 8,426,237

Total deposit 11,202,446 9,132,901 5,480,483

Shareholders' funds 4,333,482 4,275,174 2,369,232

Key Ratios

Profit after tax margin 49.3% 51.0% 54.3%

Return on equity 21% 22.8% 26.9%

Return on assets 6% 6.7% 6.8%

Total equity/Total assets 26.4% 30.2% 28.1%

Cost to income 34.6% 35.2% 35.4

Long Term Strategic Objectives:

Integration & Expansion: In addition to our acquisition of UAC Registrars, the company

has strategic plans to explore other opportunities for both organic and inorganic growth

of our business, which will ultimately grow the aggregate shareholder base across our

client companies to over 4 million by 2015 financial year end.

Investing in Technology: We have a strategic plan for continuous investment in research

and development of innovate technology to run a leaner process at lesser cost on the

long run, and greater degree of service efficiency.

Business Continuity Plan: As part of its IT Risk policies, the company has an online real time

Disaster Recovery Center (DRC), and a Business Continuity Plan site. These two centers

are at their final phase of upgrading in line with the company’s growing status.

Branch Network: Apart from the Lagos Head office, there are two branches which are

strategically positioned along regional structure, namely: Abuja and Port-Harcourt. Abuja

serves its Northern Shareholders, whereas Port-Harcourt serves its Southern clients. Plans

are also in the pipeline to open branches across the remaining geo-political zone of the

federation.

Future Outlook

Thank you

facts behind the figures - nigerian stock exchange disclosure/oando plc q3 results 2013.pdf ·...

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