Finishing 2020 strong, United Capital records double digit growth with profit rising by 61%

• Delights shareholders with a proposed dividend of N0.70k per share

Foremost Pan-African financial and investment services group, United Capital Plc, has announced its audited results for the full year ended December 31, 2020, recording double-digit growth across all its major income lines.

Despite the Covid-19 pandemic and the resultant challenging operating environment, the investment institution leveraged on increased efficiency to deliver an impressive 61 per cent year-on-year growth in profit before tax to N7.95 billion compared with N4.95bn at the end of 2019; while profit after tax stood at N7.81bn, showing an increase of 57 per cent above the N4.97bn it closed in 2019.

United Capital also recorded a 50 percent year-on-year growth in gross earnings to close at N12.87bn in December 2020, compared to N8.59bn recorded in the similar period of 2019.

On account of a significant 54 per cent increase in investment in financial assets, United capital’s total assets also rose by 48 per cent to N224.75bn in the period under review, compared to N150.46bn recorded at the end of the 2019 financial year; while shareholders’ funds grew to N24.43bn rising by 25 per cent from 19.59bn a year earlier.

On the back of the strong performance, the Directors of United Capital have proposed a dividend of 70k per share, amounting to a total of N4.2bn dividend to be paid upon ratification by shareholders at its forthcoming AGM. The 70k dividend per share, which is higher than the 50k per share declared in 2019, is payable to shareholders whose names appear on the Register of Members at the close of business on March 5, 2021.

The Group Chief Executive Officer, United Capital Plc, Mr. Peter Ashade, expressed delight on the performance, which according to him is cheering news despite the challenges that most companies faced in the year 2020.

He said: “I am pleased to inform all stakeholders that United Capital delivered impressive returns amid the unprecedented environment worsened by the pandemic during the 2020 financial year with remarkable double-digit growth in Revenue, PBT and PAT and solid performance across key business parameters.

“This empowers us to adopt a more positive outlook for the year 2021 as we navigate the tough terrain compounded by a second wave of the COVID-19 pandemic among other severe economic challenges.”

Speaking on its plan for the 2021 financial year, Ashade said: “Despite the tough operating environment, all stakeholder groups can be assured of our commitment to providing best-in-class solutions to diverse client segments and delivering superior returns to shareholders even as we work with regulatory authorities to strengthen the broader financial system as the domestic economy continues on the path to recovery in the year 2021.”