New Telegraph

No dividend for shareholders of Royal Exchange Plc as shareholders’ equity shrinks 8%

Shareholders of Nigeria’s foremost insurance group, Royal Exchange Plc, will not get a dividend on their investment in the financial year ended December 31, 2020 due to a poor financial performance it recorded for two consecutive years. Shareholders were also denied return on investment in the 2019 financial year as a result of a N1. 31billion loss of after tax. Shareholders’ fund went down by 8 percent from N3.98billion to N3.66billion in the financial year ended December 31, 2020. The audited financial report made available on the platform of the Nigerian Exchange Group (NGX) Limited, also showed that the group recorded a loss of -N77. 12million in the review financial year.

Loss after Tax however recorded a significant improvement from –N1.31billion in the financial year ended 2019 to -N 77.12million in the review period. The company, however, recorded a profit before tax of N130million compared with a loss of about N1. 01billion posted in the preceding financial year.

Total assets grew marginally by 0.81 percent from N32.11billion as at December 31, 2020 to N32.37billion in the financial year ended December 31, 2019. Information contained in the company’s audited financial report for the period ended December 31, 2020, showed that the Group Managing Director, Wale Banmore threw in the towel as he resigned his appointment with effect from the end of the financial year ended 2020. Sources close to the company hinted that Banmore bowed to the pressure from the Board of Directors as a result of the poor financial performance of the company.

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