UNITED CAPITAL GRAND 2016

When last Friday, February 17, someone offloaded almost 62m shares in United Capital plc, he or she probably was not up to date on the company.

 By selling, he not only lost right to 50kobo per share dividend to be paid March 22 this year, but also offloaded from a company that seems to be riding the Nigeria crest in grand style.

According to audited figures for 2016 released last week, various factors combined to help United Capital to more than double its profit to N6913.2m at a time recession was hitting hard.

First there was the 46.3% growth in gross earnings to N9001.0m driven by multiple growth in other income from N657.5m to N2326m; 31.5% and 22.7% increase in investment income and fee and commission respectively and N15.3m as net trading income as against zero in 2015.

Then, personnel cost rose by only 6.4% to N1274.4m; Other operating expense decreased by 5.42% to N1239.6m and impairment provision dropped by 95% to mere N33.5m.

Then to cap it all, capital gains from sale of investment assets came to N909.7m.

Hence, even though fair valuation of some assets led to N995.8m loss compared to only N26.3m such loss in 2015, the leap in United Capital profit from 52.4% increase in total income to N9910.7m, was inevitable.

It is from this the directors are recommending 50k per share dividend which if approved by shareholders during annual general meeting scheduled for March 17, will be paid by March 22.

No wonder, compared to only 92 deals when about 2.7m shares in United Capital was sold on February 14, the February 17 sale attracted record braking 470 deals in one day in one listed company.
UNITED CAPITAL PLC: Nm
                  Full year.
                     2016.       2015
Total inc.   9010.7.    ,6501.7
Gross inc.  9001.0.    6153.7
Investment 4039.7.   3073.6
Fee and com1979.6  1612.8
Net trading.     15.3.      -
Net interest    640.3     610.9
Other income 2326.0  657.5
Asset gain         909.7.    -
Fair valusomeone(995.9) (26.3
Personnel.     1274.4 1197.8
Other costs    1239.6 1310.6
Profit              6913.2 2570.5
Margin %           69.8.   39.5

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