Custodian Investment’s Revenue Hits N86 Billion Despite Fall In Annual Profit

Custodian Investment has reported a surge in revenue to the tune of N85.7 billion.

This is despite recording a 21% drop in its annual profit as shown in the company’s audited financials issued on Monday.

The investment firm’s turnover had leapt from N75.1 billion to N85.7 billion, courtesy of an increase in gross premium written from its life insurance unit.

General and life insurance accounts for the bulk of the business of Custodian Investment, whose operations also span trusteeship, real estate and pension.

While the recent reports showed a revenue jump of 14.2 per cent for 2021, the company recorded a deceleration in post-tax profit by as much as more than one-fifth.

Custodian Investment’s group-wide assets under management are above $1.1 billion, a report on the firm’s website confirmed.

Its Operating expenses rose 17.4 per cent to N52.6 billion driven by higher spending on gross claims and increased underwriting expenses. That weighed on the bottom line, forcing profit before tax to fall 10 per cent to N12.3 billion.

After-tax profit stood at N10.1 billion, 20.8 per cent weaker than the figure recorded a year earlier.

The Company had in August last year reported the completion of a mandatory takeover offer of UPDC PLC, a loss-making spin-off of UACN, having entered a binding pact a year earlier for initial acquisition of 51 per cent of UPDC.

It confirmed that the board is proposing a final dividend of N0.40 per unit payable on April 8 provided that shareholders endorse the cash reward plan at the forthcoming annual general meeting.

This is after it had paid an interim dividend of N0.10 per share, bringing the total for 2021 to N0.50. That compares with the N0.55 paid for the financial year 2021.

“Shareholders are kindly requested to update their records and advise Meristem Registrars and Probate Services Limited of their updated records and relevant bank accounts for the payment of their dividends,” the company said.