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The strategic business push by the Central Securities Clearing System (CSCS) that resulted in an N8 billion dividend payout on Friday received commendation from shareholders, who described the yield as an indicator of management’s operational efficiency.
The dividend payment, which has since commenced, translates to N1.76 per unit of shares held as of the close of business on April 22, 2025. However, it is subject to withholding tax at the applicable tax rate.
The shareholders who spoke at the company’s 31st Annual General Meeting said an analysis of the financial health of the company showed that all indicators are on a positive trajectory.
The quartet of Mr. Teju Bamidele, Mrs. Ebere Janet, Mr. Boniface Okezie, and Mr. Okonuola Emmanuel, who described the financial results for the year under review as superlative performance, requested a review upward of dividends in subsequent years, listing of the company on the Nigerian Exchange, expansion to other African countries amongst others.
A peep into CSCS financials showed that total revenue surged by 37% to N26.1 billion in 2024, up from N19.0 billion the previous year. Profit before tax also rose significantly, climbing 24% to N13.8 billion, compared to N11.2 billion in 2023.
The impressive results were largely driven by a 62% year-on-year increase in fee-based income, which rose to N11.9 billion from N7.3 billion, fuelled by heightened capital market activity. Ancillary services also contributed strongly, growing 27% from N8.1 billion in 2023 to N10.3 billion, buoyed by optimized service delivery and increased customer engagement.
Responding to shareholders’ comments, the Chairman, Mr. Temi Popolola, said the strategic framework put in place by the management had begun to yield fruit, noting that despite the challenging year under review, the company was able to deliver strong results across key financial and operational indicators. He said the company’s strategy of consolidating its core offerings while expanding into new business areas enabled it to grow gross earnings by 37%, reaching N26.1 billion.
On the business outlook for 2025, Mr. Popolola said the management remained optimistic, ‘We are framing a new corporate strategy effective 2025, with a renewed focus on enhancing operational efficiency, deploying technology for growth, and building resilience into our service delivery.’ ‘Our goal is to unlock new opportunities across all business lines, consolidate our leadership in the post-trade ecosystem, and drive long-term shareholder value,’ he added.
“In his comments, Haruna Jalo-Wiziri, Managing Director and Chief Executive Officer, while emphasizing the resilience and adaptability of CSCS’s business model, said companies decide what they want to use their profits for.
According to him, ‘On dividend and bonus, the strategy is whether you want to build the company and pay dividends. So, you have to balance the two – building the company and making investments so that it is sustainable. The issue of bonus shares is if you require more capital; you convert your earnings into bonus shares or bolster your balance sheet. Do we need more capital? I don’t think so. I think we are highly capitalized for now. But as we move forward, and if there’s a need for capital, we will definitely consider bonus shares.’
“‘For now, when a company is well-run, what we should be looking for is valuation. Shareholders should look for valuation rather than cash. If a company’s stock is N10, isn’t it better for it to be N20 rather than paying a dividend of N2? So, the ideal is that this company will continue to look for valuation for shareholders, where value lies, rather than consistently trying to pay dividends and give bonuses.’
“On the issue of listing CSCS on the Nigerian Exchange, Jalo-Waziri said, ‘It’s something the board will look at. It has been considered before. We will definitely consider it as we progress in the business,’ he added.”
Photo Caption:
L:R: Nonso Okpala, Non-Executive Director, CSCS PLC, Ibrahim Dikko, Independent Non-Executive Director, CSCS PLC, Dr. Aisha Muhammed-Oyebode, Independent Non-Executive Director, CSCS PLC, Haruna Jalo-Waziri, MD/CEO, CSCS PLC, Temi Popoola, Chairman, CSCS PLC, Chinelo Anohu, Independent Non-Executive Director, CSCS PLC, Adeyinka Shonekan, Executive Director, CSCS PLC, Bola Adesola, Independent Non-Executive Director, CSCS PLC & Samuel Onukwue, Non-Executive Director, CSCS PLC,At the 31st AGM of CSCS PLC
