AFRICAN PRUDENTIAL REGISTRARS PLC: UNVEILED MASK.

The nine months result released by African Prudential Registrars PLC recently unmasked a veil in the company's name.
This is because names best indicate or stem from main business lines. By September, this was far from true since bulk income came from net investment income which closed the period 33.5% up at N1149.3m from N861m.
In contrast main line. business chipped in only N597.8m, even down 1.22% on N605.2m by September 2014.
In the end, the company's total income rose by 17% to N1762m from N1505.5m even as income from other sources decreased by 62.1% to N14.9m.
In the case of African Prudential's profit margin, the threat came from 42.6% increase in personnel costs to N244m from N171.1m.
This was well absorbed as other expenses grew by only 2.94% to N335.6m from N326m and so, closing profit margin came to 67.8% compared to 65.9% previously by September 2014 and 61.7% for last full year.
SO:
* Time to reconsider name change? May be not.
* However no harm in being cautious with personnel cost growth since return from investment is very much outside the direct control of management.

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