By Goddy Egene
Some shareholders of United Capital Plc have said the resilience in the financial performance of the company has continued to lead to high demand for the shares of the company.
United Capital Plc, an investment banking group, closed 2020 as the seventh highest price gain for year.
The stock appreciated by 96.2 per cent from N2.40 to N4.71.
Owing to this, shareholders said the performance of the company despite the difficult operating environment, has raised hope for dividend, hence the demand for the stock, which pushed its price by almost 100 per cent, outperforming the Nigerian Stock Exchange (NSE) All-Share Index.
For instance, Mr. Moses Igbrude, said although United Capital Plc operates in the financial sector that witnessed headwinds, the board and management of the company have ensure the company record improved results.
“United Capital Plc has shown significant resilience, reporting improved results despite the headwinds in the financial sector, where it operates. This performance is a strong indication that in the midst of the challenges, the company has been able to sustain a positive performance as at the nine months ended September 2020. This is good news for any investor that expecting dividend because it very likely that the company would end the year with dividend,” Igbrude.
United Capital Plc had grown its gross earnings for the nine months ended September 30, by 33 per cent to N7.07 billion, from N5.32 billion in the corresponding period of 2019. Profit before tax (PBT) rose 26 per cent to N4.12 billion, from N3.27 billion in 2019, while profit after tax grew by same margin from N2.75 billion to N3.46 billion.
Commenting on the results, the Group Chief Executive Officer (CEO), Mr. Peter Ashade, had said:
“Notwithstanding the challenges the group has remained nimble. We continued to implement our business growth and continuity plans premised on a solid risk assessment framework to ensure we remained focused on providing best-in-class solutions to all client segments. These contributed to the impressive growth across our businesses leading to 33 per cent growth in revenue and 26 per cent increase in both PBT and PAT during the nine-month period.
According to him, going into the last quarter of the year, they were encouraged by the increasing market confidence in their brand even in the wake of the most globally devastating pandemic of the last century.
“We know the operating environment is turbulent, but we are committed to deliver superior returns to our shareholders, as we drive growth and profitability across all our businesses,” Ashade said.
He said in line with their initial strategy for the 2020 business year, “we shall continue to push further our market diversification and cost-optimisation initiatives as well as implement phased automation of our business processes whilst upholding our commitment to ensuring a significant improvement in our value delivery to all our stakeholders.”