Shareholders of Custodian Investment Plc have authorised the board of directors of the company to raise the Naira equivalent of up to $15 million as additional capital through a convertible loan instrument.
The shareholders gave the approval at the 26th Annual General Meeting (AGM) of the group held in Lagos on Thursday. They also authorised the directors of the company to convert the loan into shares in the company at a conversion price higher than N6.00 per share or the 12-month historical daily share price of the company derived from the Daily Official List of the Nigerian Stock Exchange (NSE) for the period ended March 23, 2021.
They commended the board and management of the company for reporting improved financial performance and returns on investment despite the adverse effect of the Covid-19 pandemic which disrupted global and local economies in 2020.
According to the President of Nigeria Shareholders Solidarity Association, Mr. Matthew Akinlade, the performance by the board and management of the company is a very good one based on the financial indices. “You have done very well and I wish you better days ahead,” he said.
The association’s National Coordinator Emeritus, Sir Sunny Nwosu, also lauded the company’s performance and returns on investment. He advised that the company should consider a bonus issue to shareholders because of the robust statutory reserves and regulatory requirement.
Another shareholder, Mr. Adeleke Adebayo, commended the company for weathering the storm of 2020 and its challenging operating environment. He praised the company for the foresight of having a holding company which now enables it to make investment decisions easily.
Another major highlight of the meeting was the approval of payment of 55 kobo dividend recommended by the directors. Meanwhile, an interim dividend of 10 kobo had been paid earlier during the year.
Addressing the shareholders at the meeting, the Chairman of the board of directors, Dr. (Mrs.) Omobola Johnson, remarked that, “I am delighted to report that our company recorded significant successes during the 2020 financial year despite the challenging operating environment, a fallout of the global Covid-19 pandemic and the resulting weak oil earnings, Naira devaluation and high inflation.”
She noted that the successes recorded by the company in 2020 is an affirmation of the robustness of the group’s business model, which allowed it to quickly adapt to the fast-changing environment, the astute leadership of the company supported by energetic employees using technology to efficiently provide prompt services to clients.
She said in spite of the challenges faced during the year under review, the group more than doubled its profits by posting a profit after tax of N12.69 billion as against N6.01 achieved in 2019. He said revenue grew by 22 percent to a new high of N75.06 billion compared with N61.42 billion in 2019.
Total asset base also increased from N118.02 billion in 2019 to N176.16 billion in 2020, representing a growth of 49.26 percent while the shareholders’ fund grew by nine percent to N47.65 billion from N43.7 billion in the 2019.
Dr. Johnson disclosed that the company acquired a controlling interest in UAC Property Development Company Plc, remarking that the acquisition is in line with its strategy to diversify into property development and management.
She explained that the acquisition provided a safe, profitable and long-term investment opportunity to deploy the group’s long-term funds.