Category: Capital Market

Sterling Bank Plc has rewarded 50,000 youths with gifts of investment opportunities by buying equities for them in some 14 companies listed on the Nigerian Exchange (NGX).

Chief Marketing Officer, Sterling Bank Plc, Mr. Ibidapo Martins said the investment gifts included equities from companies from the telecommunications, financial services, manufacturing, consumer-packaged goods and pharmaceuticals sectors.

Some of the equities included shares from Dangote Cement, MTN Nigeria Communications, AXA Mansard, Fidson Pharmaceuticals, Unilever Nigeria, Cadbury Nigeria, UAC of Nigeria (UACN), RT Briscoe, Julius Berger and Sterling Bank.

According to him, these equities have been curated with careful-thought based on the equities’ proven records of outperforming the market and delivering value to shareholders, regardless of economic conditions over the years. He said the bank’s inspiration to give youths the investment gift was based on the true meaning of love during Valentine’s Day.

“Real love is more than just an expensive dinner, flowers and perfumes.  When the dinner is eaten, the flowers withered, the music stopped and the lights are out, what will be left of Valentine’s Day?

“This is why Sterling Bank has chosen to give something much like true love that grows every day, appreciating in value for the receiver with each passing day. This gift lays a foundation for a life of value; by starting the young customer on a path for continuous earnings tomorrow and beyond with an investment in today’s best stock options.”

“The first 50,000 youths to open the new accounts and complete the application by having their BVNs validated will receive the equities within 48 hours after their BVNs have been validated and will be free to transact in the equities once their portfolios are set up. Like most opportunities that come knocking, some will embrace it and commence a lifetime of saving and investing, ultimately leading to their financial freedoms and goals while others will squander the gift,” Martins said.

Chief Executive Officer, I-Invest, a tech-based investment firm and creator of Nigeria’s first treasury bills investment mobile app, Mr. Seye Olusoga, commented that the selected companies have a combined valuation of over N8 trillion on the NGX as of February 11, 2022, with recipients of the special gifts given the opportunity to create a better future by making the right choices.

“The path to wealth runs through investing and entrepreneurship. In many cases, the foundation for the entrepreneurs is their investment portfolios with which they can break free and live out their dreams because the right choices for tomorrow have been made today with shrewd investments,” Olusoga said.

To enjoy the valentine bouquet, interested recipients are encouraged to download and register on the OneBank mobile app on iOS and Google Play Stores with additional details of the special gift being made available on sterling.ng/truelove.

Nigerian Breweries (NB) Plc grew its top-line by 29.7 per cent to N437.2 billion in 2021 as the brewer saw a major recovery in sales and margins.

Key extracts of the audited report and accounts of NB for the year ended December 31, 2021 released at the weekend showed that turnover rose from N337.01 billion in 2020 to N437.2 billion in 2021. Operating profit rose by 40.2 per cent from N29.82 billion to N41.81 billion. Net profit jumped by 71.8 per cent to N12.93 billion in 2021 compared with N7.53 billion in 2020. Earnings per share thus increased correspondingly from 94 kobo in 2020 to N1.61 in 2021.

While the share capital increased by one per cent from N3.998 billion to N4.038 billion, shareholders’ funds rose by 6.8 per cent from N161.15 billion to N172.14 billion. Net assets per share also imporved from N20.15 in 2020 to N21.40 in 2021, representing an increase of 6.2 per cent.

The board of the company has recommended payment of the entire net profit of N12.93 billion as cash dividends for the 2021 business year. Shareholders will receive a final dividend of N1.20 per share or N9.69 billion, after the company had paid N3.23 billion or 40 kobo per share as interim dividend during the year. The final dividends will be paid to shareholders whose names appear on the company’s register as at close of business on March 09, 2022.

Also, the board would also seek shareholders’ approval at the forthcoming annual general meeting (AGM) for a right of election for qualifying shareholders to receive new ordinary shares in the company instead of the final dividend in cash.

Company Secretary and Legal Director, Nigerian Breweries (NB) Plc, Uaboi Agbebaku, said the board of directors commended the management for placing the company on the path to recovery from the debilitating impact of the COVID-19 pandemic and other challenges faced during the year.

Agbebaku stated that the company remains committed to delivering improved performance in the years ahead.

According to him, the company would also continue to deploy cost-efficient measures to keep its balance sheet strong and healthy while ensuring that the safety and welfare of its employees, customers and partners remain well protected.

Seplat Energy Plc has restated its commitment to the economic development of youths.

Speaking at the graduation of 15 fellows from Seplat and Conversations for Change’s (C4C) entrepreneurship programme, its Director, External Affairs and Sustainability, Seplat Energy, Dr. Chioma Nwachuku, said the collaboration was a bold step taken to realising the United Nations’ Sustainable Development Goals.

“The vision of this initiative is to create a world where young people/minds are inspired, motivated and empowered to find their niche in society and use their skills and talents in improving their societies and countries and indeed their world. In doing this, day-to-day items and wastes are converted to wealth, thus promoting a sustainable world,” Nwachukwu said.

Chief Executive Officer, Seplat Energy Plc, Mr. Roger Brown described the event as a long-term effort to invest in the next generation of leaders, through creating a vibrant platform for continuing information provision, dialogue, and discussions.

He added that through these  strategies, the initiative would inspire, encourage and support young people to become active partners in the development and leadership of their communities, societies, nations and indeed the world.

“Seplat Energy aspires to be a good corporate citizen, committed to driving positive socio-economic benefits for our country and our other stakeholders, and recognising that we must continuously earn our social licence to operate. Indeed, we embed this commitment in one of the five strategic pillars that guide our approach to business: Behave responsibly and share our success,” Brown said.

The fellows were equipped to begin their business empires, which are expected to grow and flourish as well as provide support to not just them and their families, but also for communities, countries and indeed the world.

C4C is a non-profit organisation with a major objective of empowering young people to participate more effectively in areas of development.

The beneficiaries were Moyinoluwa Ajibulu, Kogi; Ruke Ejegreh, Delta; Yemisi Olanrewaju, Osun; Aisha Ahmed, Edo; Indira Orbih, Anambra; Ruth Ede, Imo; John Tokula, Kogi; Rachael Bob, Rivers; Elizabeth Nyong, Cross River; Augustine Samson Tsaku, Nasarawa; Joel Glory, Kogi; Nkiru Agbarah, Abia; Anefu Lilian, Benue; Jude Elayo, Nasarawa; and Ene Adah from Benue State.

President and Founder, Conversations for Change (C4C), Dr. Kechi Ogbuagu, said the dream of the non-governmental organisation is to see every young person in Nigeria, in Sub-Saharan Africa, and the world at large, living his or her best life – with a sustainable means of livelihood and financially empowered. ‘They will thus contribute to the economy and become relevant and influential members of the society and become key players in the areas of entrepreneurship, leadership and governance.

“The role the entrepreneurs play in economic development cannot be overemphasised, neither can the importance of social entrepreneurship be overstated. While entrepreneurship may create a source of livelihood for a creative entrepreneur, social entrepreneurship has the power to change the life of not just one creative entrepreneur, but the lives and living conditions of an entire community.

“Our aim, therefore, is to inspire and provide as many young people as possible with the skills required for becoming successful social entrepreneurs,” Ogbuagu said.

Ellah Lakes Plc has reached an agreement to build a 600-ton sugar refinery as the agricultural company continues its diversification plan.

Ellah Lakes stated that it was collaborating with Montserrado Investment Limited to build a sugar processing plant with a capacity of 600 tons of cane per day.

The sugar processing facility is expected to run on 100 per cent renewable power, and the period from construction to completion and inauguration, is expected to be 24 months.

Chief Executive Officer, Ellah Lakes Plc, Chuka Mordi said the agreement was a significant landmark for the company in fulfilling its strategic objective of diversifying its portfolio and production base.

“We are very pleased at this collaboration and look forward to a mutually beneficial, valuable and fruitful venture,” Mordi said.

He noted that the new sugar plant aligns with the National Sugar Master Plan (NSMP) being championed by the National Sugar Development Council (NSDC), which is geared towards accelerating the development and growth of the local sugar industry to achieve national self-sufficiency.

Ellah Lakes had earlier reached agreement with Ondo State on the development of a palm oil and cassava farm, covering about 5,000 hectares. Both partners would develop and manage the farm for the cultivation of oil palm and cassava in Ondo State.

Ellah Lakes had in August 2020 entered into exclusive discussions to acquire the entire issued capital of an oil palm processing company with substantial assets in Delta State.

Ellah Lakes was incorporated on July 2, 1980 and was listed on the Nigerian Exchange (NGX) on January 14, 1993. Originally a fish-farming company, Ellah Lakes had recently embarked on a comprehensive restructuring and diversification of its businesses. In 2019, it acquired Telluria in order to diversify its product offerings in the agribusiness sector.

Ellah Lakes acquired 100 per cent equity stake in Telluria with effect from May 7, 2019. Having complied with all the necessary regulatory requirements, the acquisition was approved by the NSE and Securities and Exchange Commission (SEC).

Key extracts of the audited report and accounts of Ellah Lakes for the year ended July 31, 2021 released at the weekend showed that pre-tax loss increased from N308.30 million in 2020 to N567.79 million in 2021. After taxes, net loss increased from N309.37 million in 2020 to N563.28 million in 2021. Meanwhile, the company’s total assets rose from N5.63 billion in 2020 to N10.08 billion in 2021.

Mordi1  has said ongoing restructuring would make Ellah Lakes to attain profitability and further foster its vision of being the leading supplier of sustainable edible oil and starch to the consumer goods sector in Nigeria.

He noted that prior to 2019, Ellah Lakes was an insolvent entity but Telluria Ltd completed a reverse acquisition of the company, recapitalising the balance sheet and repositioning the business for growth with a new board and management team.

“Today, we are undergoing a restructuring exercise, which will return the business to profitability and reposition it as a leading agribusiness player across West Africa. From a corporate governance point of view, we hold ourselves to high standards of governance as expected by our shareholders and regulator, and as is befitting of our vision to become the leading supplier of sustainable edible oils and starch to the FMCG Industry in Nigeria, particularly, and West Africa, in general,” Mordi said

The Board of Directors of United Capital Plc has recommended a 114 per cent increase in dividend payouts to shareholders after the pan-African financial services group sustained impressive growths in earnings in 2021.

Directors of United Capital at the weekend recommended payment of dividend per share of N1.50 to shareholders, an increase of 114 per cent on 70 kobo paid for the 2020 business year. Shareholders will receive total dividend payment of N9 billion for the 2021 business year after net profit rose by 44 per cent to N11.3 billion.

Key extracts of the audited report and accounts of United Capital for the year ended December 31, 2021 released at the weekend at the Nigerian Exchange (NGX) showed that gross earnings grew by 40 per cent to N18.07 billion in 2021 as against N12.87 billion in 2020. Operating income increased by 30 per cent to N16.24 billion as against N12.49 billion. Operating expenses rose from N4.93 billion to N5.94 billion. With this, operating profit before tax jumped by 53 per cent to N12.12 billion in 2021 compared with N7.95 billion in 2020. After taxes, net profit grew by 44 per cent from N7.81 billion to N11.26 billion. With these, earnings per share rose by 44 per cent from N1.30 in 2020 to N1.88 in 2021.

The balance sheet also emerged stronger with a double in total assets from N222.75 billion in 2020 to N453.60 billion in 2021. Total liabilities leapt by 113 per cent to N423.05 billion in 2021 as against N198.32 billion in 2020. Shareholders’ fund grew by 25 per cent from N24.43 billion in 2020 to N30.55 billion in 2021.

Key underlying ratios underlined that the overall performance was driven by intrinsic business growth and efficient cost management. Return on equity increased from 31.98 per cent to 36.86 per cent. Operating pre-tax profit margin improved from 61.73 per cent to 67.11 per cent. Net profit margin increased from 60.67 per cent to 62.32 per cent. Cost-to-income ratio improved from 38.27 per cent to 32.89 per cent.

Chairman, United Capital Plc, Professor Chika Mordi said the 114 per cent increase in dividend payout reaffirms the group’s commitment to wealth creation for its shareholders.

Group Chief Executive Officer, United Capital Plc, Mr. Peter Ashade, said the strong performance in 2021 was driven by exponential growth in business activities across all the market segments as the group successfully navigated a volatile operating environment to create best-in-class solutions for its clients.

“United Capital is on a progressive path as witnessed in our strong earnings growth and superior value delivery to shareholders over the years, amongst other metrics that are reflective of high performing organizations.

“All stakeholders can be assured of our commitment to sustain our organizational growth trajectory well into the foreseeable future as we navigate the tough operating terrain.

“We will continue to pursue developmental activities and actively engage regulatory authorities, investors, and relevant stakeholder groups towards deepening the capital market, strengthening the broader financial system, and driving financial inclusion as a means of accelerating the economic development of our dear country and empowering its citizens,” Ashade said.

He pointed out that United Capital remains a leader in the financial and investment services space, with a mission to provide bespoke and innovative value-added services to its clients.

DLM Capital Group Limited (DLM) has closed application list for its latest N5 billion commercial paper (CP) issuance.

DLM Capital sought up to N5 billion in the Series 3 & Series 4 Commercial Paper Notes under its N20 billion CP Issuance Programme. The group is rated ‘BBB-’ by GCR Ratings and ‘A-‘ by DataPro.

DLM Capital offered, under the Series 3, 180-day CPs at a discount rate of 11.3295 per cent and implied yield of 12.00 per cent.  The indicative maturity date was expected to be Wednesday, August 10, 2022

It also simultaneously offered, under the Series 4, 270-day CPs with discount rate of 11.8595 per cent and implied yield of 13.00 per cent. The indicative maturity date was scheduled for Tuesday, November 08, 2022.

The net proceeds of the issue would be used to fund working capital requirements of two subsidiaries of the group namely: CitiHomes Finance Company and Links Microfinance Bank. DLM Capital Group had earlier raised N1.24 billion under the Series 1 and N1.01 billion under the Series 2 CPs. These were subsequently listed on the FMDQ Securities Exchange.

According to the offer prospectus, DLM Capital Group is a development investment bank and a diversified financial services institution.

The group has been at the forefront of creating alternative funding solutions to businesses, providing bespoke and innovative financing for a variety of economic sectors.

The group stated that it places a strong emphasis on driving sustainable development of the Nigerian economy by focusing its expertise on key sectors such as agriculture, general business finance, consumer credit, housing, transportation, infrastructure, and education in line with its chosen development mandate to help reduce poverty and improve the living conditions of Africans as a whole.

According to the offer document, the overall goal of the group is to help mobilize international and domestic capital to support the continent’s economic and social development.

The group currently consists of seven operating subsidiaries regulated by the Securities and Exchange Commission (SEC) or Central Bank of Nigeria (CBN). Its subsidiaries are DLM Advisory Limited, SoFRI Digital Bank powered by Links Microfinance Bank Limited, CitiHomes Finance Company Limited, DLM FX Trading Limited, DLM Trust Company Limited, DLM Securities Limited, and DLM Asset Management Limited.

DLM Capital Group offers general financial and investment banking-related services via its subsidiaries above which provide, corporate finance advisory, asset management, trust services, securities trading, and forex dealing.

The group also has a fintech company which includes a full-service digital bank that provides general banking services to retail consumers. This also includes payment services and retail credit. Finally, the Group has a finance company that provides advances to mid-sized corporate businesses.

On the distribution side, DLM works with domestic pension fund managers, asset managers, bank treasurers, corporate bankers, trustees, high net worth individuals, and other retail investors, as well as with international emerging market fund managers and international banks with an appetite for sub-Sahara African investments.

The Lagos Commodities and Futures Exchange (LCFE) has registered 39 firms as dealing members for trading on the exchange.

LCFE has also set up market development committees for structured commodities trading ecosystem.

Head, Operations, Lagos Commodities and Futures Exchange (LCFE), Dr Allwell Umunnaehila said the Exchange has registered 39 dealing member firms and stakeholders looking to raise capital for their operations could do so through listing financial contracts on the Exchange.

He said the scope of business operations include commodity aggregation, processing, logistics, cold chain and infrastructure development.

Managing Director, Lagos Commodities and Futures Exchange (LCFE), Mr. Akin Akeredolu-Ale also said the Exchange has recorded many other milestones, including onboarding of new directors, critical stakeholders, establishment of a framework for publicly listed instruments, partnerships with key stakeholders, capacity building and regulatory advocacy.

He explained that the dealing member firms would drive the commodities market through advisory, marketing, trading, product generation, and advocacy.

He said the commodities ecosystem was a huge market that needed to be explored, pointing out the steps the dealing member firms will take to onboard new clients to the Exchange and develop the market.

Akeredolu-Ale also inaugurated commodity development committees to drive the development of the ecosystem, including committees include advocacy, product development/ and liquidity, minimum operating standard, marketing and technology.

Meanwhile, dealing member firms have agreed to spearhead the development of the ecosystem through the committees.

Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Sam Onukwue, congratulated the dealing member firms and advised them to partner with the Exchange for enhanced professional practice.

The British Deputy High Commissioner, Mr. Ben Llewellyn-Jones has underscored the need for the Nigerian capital market regulators and operators to create more alternative investment options for all classes of people in order to deepen domestic participation in the Nigerian capital market.

Speaking during a meeting with the Securities and Exchange Commission (SEC), Llewellyn-Jones said the diversified investment options would help to attract people to the Nigerian market and also pulled away people from unregulated space.

“The more you can create alternative options the easier it is to pull people away from unregulated space and that is why the Sandbox is so attractive to us and why we encourage it. We come across these fintech players and they are formidably driven in their vision.

“But we get a sense they need to work with regulators to make it work and they recognise that it’s the right way to be attracted to investment and grow the way they want. They are formidably talented as well and it is really encouraging. We are very keen to work with you and your approach and that’s very heartening and the appetite for innovation is what has attracted us to that the most,,” Llewellyn-Jones.

Director-General, Securities and Exchange Commission (SEC), Mr. Lamido Yuguda, reaffirmed the commitment of the Commission to programmes aimed at making the capital market attractive to Nigerians of all ages and status.

He said the Commission is implementing various initiatives to ensure that products and offerings in the market are accessible to both the young and old which he said would further deepen the market.

“When we assumed office, we were shocked to know that the average age of the Central Securities Clearing System account holder was over 50 years. The CSCS is a depository so if you are investing in equities you must have a CSCS account.

“The average age of that account holder was over 50, and that made us realise that the young people were not participating in this market and when young people are not participating in any market, that market is doomed to fail. And young people today prefer to do things on their phones, if you have to fill a stack of forms manually young people won’t do it. We want to make investing in the capital market a fun experience.

“The capital market experience starts with a bank account and eventually the distribution has to hit a bank account as well. So we decided to look at the whole process and find out what is turning young people off. We have started the process and seen how the tech companies are providing much needed relief to the kind of bureaucracy that happens in the capital market,” Yuguda said.

Yuguda disclosed that the SEC recently approved an e-offer for MTN and expressed the excitement of the Commission that Nigerians especially those of the younger age bracket were able to participate in the offer.

“It was marvellously successful and we are very excited about it. A lot of young people who had never invested in the capital market took the MTN offer. That is one of the first step in a lot of steps we are going to take to make investing in the capital market a much nicer experience for people both young and old. We know we can move quickly and faster once we strengthen our IT infrastructure to do a lot more” He said.

“In this market what we have seen is that where people do have ready access to interesting products in the regulated market they then gravitate towards the parallel markets and the Ponzi schemes and really the task of the Commission is to as much as possible move money to the regulated market away from the Ponzi schemes,”  Yuguda said.

He noted that with e-offers, a lot of Nigerians would be happy to invest in the capital market and that would dissuade people from patronising illegal schemes thereby leading to the development of the capital market and the Nigerian economy.

Yuguda also said that the Commission in its drive to attract more people to the market is focusing on a proper identity management system which would also aid in the reduction of the issue of unclaimed dividends.

“One area we recognised we needed to attend to is the lack of proper identity management system in the market and this an area the Commission has really focused on. We have had over the past few decades a lot of unclaimed dividends in the market and we thought that the identity management could help solve the problem.

“I believe if we are able to do this to a logical conclusion it could unlock a lot more investors because I think the fact that people have money in the capital market and have not been able to claim them, it is not only bad for the people who have this money but it is also a disincentive for those trying to come in because they do not want their money to be trapped,” Yuguda said.

The DG commended the relationship between the Commission and the UK government the Commission and Nigeria which he stated has contributed to the growth and development of the capital market

Nigeria’s first non-interest bank, Jaiz Bank Plc continued on a strong growth path with double-digit growths in the top-line and bottom-line in 2021.

Key extracts of the unaudited results for the year ended December 31, 2021 released at the Nigerian Exchange (NGX) showed that gross income rose by 31.76 per cent from N19.61 billion in 2020 to N25.84 billion in 2021. Profit before tax grew by 37.2 per cent from N3.07 billion in 2020 to N4.21 billion in 2021. With these, earnings per share increased by 21.6 per cent from 9.85 kobo in 2020 to 11.98 kobo in 2021.

The balance sheet of the bank also emerged stronger. Total asset grew by 19.62 per cent from N233.58 billion in 2020 to N279.42 billion in 2021. Shareholders’ funds also rose by 14.84 per cent from N17.85 billion in 2020 to N20.50 billion in 2021.

Managing Director, Jaiz Bank Plc, Mallam Hassan Usman said the bank has consistently delivered remarkable results over the years, and the latest result is a reaffirmation of the continuous growth trajectory and the bank’s leadership status in Nigeria’s non-interest banking space.

He attributed the achievements to the bank’s footprints across the country, coupled with the strong ambition to provide excellent service to customers while meeting their financial needs.

He commended the board, management and staff on the performance of the bank noting that the results over the years show the immense hard work of staff, excellent service delivery to customers and support from shareholders.

Coleman Technical Industries Limited (CTIL), a manufacturer of wires and cables, has fully repaid its Series 1 Commercial Paper (CP) issuance to investors.

In a statement signed by its Managing Director, Mr. George Onafowokan, the company stated that it promptly fulfilled its obligation on the Series 1 CP issued for 180 days, which matured on January 10, 2022, and informed FMDQ Securities Exchange Plc of the payment in line with best practice.

Coleman accessed the CP market for the first-time last year, in a bid to increasingly diversify its funding structure to ensure it continues to provide good quality cables at competitive prices to its customers.

With a successful outing, the Series 1 CP issuance attracted high net worth individuals, asset managers, insurance companies and pension fund administrators.

Onafowokan thanked the investing community for their confidence in the company’s instrument.

“We congratulate the professional parties involved in the process and remain optimistic that the successful payment of investors will avail us the global visibility needed to achieve our long-term capital plans,” Onafowokan said.

Skystone Capital and Investment Limited acted as Financial Adviser to Coleman, while Coronation Merchant Bank Limited acted as lead issuing house.

They were supported by Cardinal Stone Advisory Limited, FSDH Capital Limited, and SFS Financial Services Limited as joint issuing houses.