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Custodian & Allied Hit N25bn In 2014 Amidst Tough Business Climate

Anurika Nwachukwu

Custodian and Allied plc revealed that it has made remarkable progress with N25 billion revenue 2014 in the face of daunting challenges. The chairman of the company Mr Ade Ojo said this at the company’s 20th Annual General Meeting of the Company in Lagos recently stating that the shareholders are pleased with the management of the firm for an impressive result despite the difficult terrain in which it operated in 2014. “It is very gratifying to note that all of the subsidiaries were profitable during the year. We are happy with our management for an impressive result despite the difficult terrain in which it operated in 2014”. he said The UNION gathered that in spite of the tough national economy, to excessive regulation and myriad of challenges of 2014, the Company did not only survive but progressed on all fronts during the year.

On future outlook Ojo noted that the national economy outlook for 2015 is challenging with significant headwinds from political and national security issues; inflation, foreign exchange, stock market and external reserve concerns, but expressed confidence that the management of the company ability to weather the storms “I am however, absolutely confident in our management’s ability to survive and thrive in the difficult terrain”. he noted The shareholders who spoke at the AGM said the firm has remained committed to increasing shareholder value despite the harsh operating environment, and very fierce competition in the nation’s underwriting market and equally commended the board and management of the financial services group for sustained dividend culture and increased value creation for shareholders.

The secretary general, Independent Shareholders Association of Nigeria, Adebayo Adeleke, commended the board management of Custodian for always ensuring that dividends are paid on a yearly basis in spite of the challenges in the operating environment. “We are happy that you are able to post impressive result during the operating year 2014, as well as for paying the shareholders a dividend of 18 kobo for the yea.r” Another shareholder Akinsanya thanked the management for doing a good job, urging them to keep it. Kabiru Salaudeen also expressed appreciation to the company’s management for its policy on consistent dividend payment, saying the organisation is one of the few insurance companies that paid its shareholders interim and final dividends for the period.

This is as the Company recorded positives in all indices, posting a total gross revenue of N25.20 billion as against N24.68 billion in 2013, showing a 2.1 percent increase, while total assets moved up by 7.03 percent, from N45.65 billion to N48.86 billion at the end of 2014 financial yea.r Profit before tax also appreciated by 18.73 percent moving from N4.34 billion in the previous year to N5.15 billion in the review year, while profit after tax rose by 13.6 percent from N3.60 billion to close at N4.09 billion.

Earnings per share grew by 11 percent, from 63 kobo to 70 kobo at the end of 2014. Custodian and Allied plc paid out a total of 18 kobo per share in the full year result for the period ended December 31, 2014. This is a cumulative of additional 12 kobo per share as final dividend and interim dividend of 6 kobo per share paid in September of the review year. The Company is a group of financial services firm with subsidiaries in general insurance business, life insurance business, trustees business and pension administration.

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