United Capital Plc has reported 17 per cent decline in unaudited Half year (H1) ended June 30, 2019 result and accounts released to the Nigerian Stock Exchange (NSE) on Friday.
The company’s Profit Before Tax (PBT) dropped to N1.99 billion in H1 2019 from N2.39 billion in H1 2018 despite reporting 16 per cent decline in Operating expenses to N1.26 billion compared to N1.49 billion in H1 2018.
The company also suffered 17 per cent decline in revenue to N3.24 billion in H1 2019 from N3.88 billion in H1 2018, while Operating income dropped by nine per cent to N2.82 billion in H1 2019 from N3.10 billion in H1 2018.
Statement of financial position showed United Capital’s total assets dropping by five per cent to N141.30 billion as at June 30, 2019 from N148.70billion reported in 2018 financial year result and accounts.
Total liabilities dropped by six per cent to N124.97billion in H1 2019, compared to N132.86billion as at 2018 while shareholders’ fund grew by three per cent to N16.33 billion compared to N15.83billion as at 2018 financial year results.
Investment income saw a 10 per cent year-on-year increase in Q2 2019 as against the five per cent decline in H1 2019. This was due to the increase in income from bonds, stocks and other financial investments.
The Group CEO, Mr. Peter Ashade, in a statement said, “We did deliver on our promise to improve performance in Q2 2019 and as can be gleaned from our numbers, we had a good outing in the quarter under review as Q2 2019 Profit Before Tax grew by 27 per cent year-on-year on the back of the reduction in operating expenses which was the result of the various strategic initiative that we embarked on in the last quarter which was to reduce cost and increase our top line as a way of furthering our efficiency drive.
“Unarguably, the global economy is still recovering from the lingering contagion effect of the US-China trade war and the Brexit saga, while we on the local scene are activities stull trying to pick up steam following the 2019 general election and a series of political and economic activities that we saw during the first quarter of 2019.”
“More so, as the elected government of various states begin to stabilize and inaugurate their cabinets, we believe the pace of bond and commercial paper issuance would pick up and further increase our advisory fees therefrom more than what we saw in Q2 2019.
“Our financial advisory fee ramped up 13 per cent year-on-year. Beyond this, the group would be looking to adopt some initiatives which we believe would help improve our top lines and consequently improve our profitability.
Discussing the result further, he said, “ We would be going into the second half of the year 2019 stronger and with an improved strategy aimed at preserving and increasing shareholders’ wealth as evident from the three per cent increase in the latter during the period under review. We would like to inform shareholders that we are poised and resolute on our promise to deliver an even improved result come Q3 2019.”