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The Central Securities Clearing System (CSCS) maybe be working a tight rope in the 2019 financial year, as the company is having a contingent liabilities litigation of N2.5 billion putting pressure on its operations.
This is coming on the heels of shareholders approving the 70Kobo per share paid to investors in the 2018 year under review, thus bringing the total of dividend paid in year to N3.5 billion.
However, the CSCS management said the organisation is only a nominal party to the contingent liability, even as the various suits will not succeed against the company.
A cursory look at the company’s financials, shows a profit before tax of N6.09 billion for the year.
Speaking to shareholders at the company 25th Annual General Meeting (AGM) in Lagos, yesterday, the chairman of CSCS, Oscar Onyema, said that despite the socio-economic developments and political agitation/instability, the company’s business performed well as seen in its financial results.
Onyema attributed the good performance to several factors including the primary market segment which witnessed the listing of two new companies, Notore Chemicals Industries and Skyway Aviation handing Company (SAHCO) and relatively strong secondary market activity on the Nigerian Stock Exchange (NSE), growth of non-traditional products and services to drive auxiliary income as part of strategy implementation, sound corporate governance model, skied workforce and technology.
The company’s results during the period under review showed Group’s gross earnings grew by four percent year-on-year to N9.1 billion in 2018 from N8.7 billion in 2017.
Income from other non-core services amounted to N260 million, up from N215 million, resulting in an increase of 17 per cent, while total operating expenses in the year stood at N3 billion as in 2017.
At the end of the year, profit before tax stood at N6.09 billion in 2018 from N5.66 billion in 201 7. Total assets grew by 12 per cent to N35.85 billion in the year under review from N31.91 billion in 2017.
Onyema noted that “We continuously strive to create value for our shareholders by developing products and services in addition to our core business.”
According to him, our marketing efforts have been re-energized to establish us as leaders in the document management services space with clientele across several business sectors and in government.
On outlook, the chairman of CSCS said that strong Corporate Governance standards and strategy execution shall remain top of mind for the board and management in the coming years.
“We will continue to stretch ourselves to ensure that our strategic objectives are met, so as to achieve long term value creation for our shareholders and stakeholders,” he said.
Also, the chief executive officer of CSCS, Mr. Haruna Jalo-Waziri said “Overall our capability to process trades has now significantly increased from hundreds of thousands of trades to millions of trades daily.
“This development ensures that we stay well positioned to deliver clearing and settlement services across current and future product offerings of the Stock Exchanges, we render services to.”
Jalo-Waziri stated that “We have continued to strengthen our interaction and influence within and outside of the Nigerian capital market by cultivating and maintaining partnerships that promote similar interests and
