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Royal Exchange Nigeria Plc will once again commence the payment of dividend to shareholders beggining from 2017 financial end.
This assurance was on Thursday given by management, at the company’s fact behind the figure presentation on the floor of the Nigerian Stock Exchange (NSE), following assurances of sustaining value creation to its shareholders.
The company last paid dividend to its members in 2013, following which its profit after tax has been in negative trajectory.
Chairman of the company, Mr. Kenneth Odogwu further disclosed that the company is positioning to approach the capital market for fresh funds to boost its capital base, and take advantage of high ticket multi-sectorial transactions that guarantees favorable returns.
Odogwu said that for the 100 years the company had existed, it has sustained divided payment, but was interrupted in 2014, 2015 and 2016 financial years due to losses made by the company , occasioned by huge provisioning.
He said that based on strategic innovation and transformation embarked upon by the management and board of the company his repositioning the company for increased profitability and returns on investments to all stakeholders.
According to him, digital transformation, Agriculture insurance which has been endorsed by NAICOM, with support from federal government and the world bank as well as opportunities in the federal government’s compulsory insurance policies.
In his address, the company’s group managing director, Mr. Auwalu Muktari
said that the company , as one of the two insurance companies to benefit form the deregulation of agric insurance in Nigeria, is positioned to take advantage of opportunities to boost the nation’s economy, increase agricultural produce, boost its bottom line and return value to shareholders.
He reiterated that since its last capital raising in 2006, the company has not raised fresh funds from the market, as its operations have been funded by internally generated income.
Muktari said that , the impact of transformation in Royal Exchange saw the company recording profit after tax (PAT) of N203.3 million in the first half of 2017, representing 19 percent increase from N171.14 million premium recorded by the company in the corresponding period in 2016.
Also, 11percent increase was recorded in Gross Written Premium for the period from N8.43 billion in 2016 to N9.37 billion in 2017.
“By focusing on the growth objectives set forth at the beginning of the year, which included an increased focus on the retail and corporate markets, amongst others, we have been able to achieve moderate growth and the board and management of the company are definitely optimistic for the second half of the year”, Muktari stated.
According to him, the beginning of the 2017 financial year witnessed difficulties in the Nigerian economy, but as evidenced by the Royal Exchange results and those of other firms in the Nigerian Stock Market, there is renewed optimism in the Nigerian economy.
Earlier in his address, the NSE CEO, Mr. Oscar Onyema, lauded Royal exchange Plc for coming to the exchange to present its facts behind the figures.
Represented by Executive director, Market development, the NSE, Mr. Haruna Jalo, Onyema commended the company for recording profit in its Q2 2017, and its commitment to return value to shareholders funds.
Photo Caption:
From Left: Alhaji Rabiu Mohamed Gwarzo, Director, Royal Exchange Plc; Haruna Jalo-Waziri, Executive Director, Capital Markets Division, The Nigerian Stock Exchange (NSE); Kenny Odogwu, Chairman, Royal Exchange Plc and Alhaji Auwalu Muktari, Group Managing Director, Royal Exchange Plc at the Fact Behind the Figures presentation at the Exchange.
