The first financial results of first-quarter earnings season is out. Aside from the earnings declaration, the company’s performance tells the story of the of what the world is going through and how companies can thrive despite the pandemic. See highlights below:
Negative impact of the pandemic: 52% decline in revenue from contracts with customers
“Revenue from contracts with customers reduced by 52% year-on-year on the back of the drop in retainership fee during the first quarter coupled with a significant reduction in fee from corporate actions as a result of the postponement of clients’ AGMs and dividend payment in response to the spread of the novel coronavirus in Nigeria”
The Company’s response: 900% growth in revenue from digital consultancy
“The company was however able to increase its revenue from digital consultancy by more than 900%, thereby emphasizing the positive result from the company’s diversification strategy into digital technology”
Financial Highlights:
Income Statement:
• Revenue from contracts with customers: N0.13 Billion, compared to N0.27Billion in Q1 2019 (52% YoY Decline);
• Interest Income: N0.61 Billion, compared to N0.60 Billion in Q1 2019 (3% YoY Increase);
• Gross Earnings: N0.74 Billion, compared to N0.87 Billion in Q1 2019 (14% YoY Decline);
• Profit Before Tax: N0.41 Billion, compared to N0.45 Billion in Q1 2019 (9% YoY Decline);
• Profit After Tax: N0.34 Billion, compared to N0.38 Billion in Q1 2019 (10% YoY Decline);
• Earnings Per Share: 17 Kobo.
Balance Sheet:
• Total Assets: N18.09 Billion, compared to N18.65Billion as at FY 2019 (3% YTD Decline);
• Total Liabilities: N9.52 Billion, compared to N10.37 Billion as at FY 2019 (8% YTD Decline);
• Shareholders’ Fund stood at N8.57 Billion, surging by 3% YoY from N8.28 Billion as at FY 2019.
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