VFD grows profits by 170%, declares N8.51 dividend per share

VFD Group, a proprietary investment company with interest in banking, asset management, real estate and foreign exchange, grew its profit before tax (PBT) by 175 per cent last year, from N1.48 billion reported in 2019 to N4.08 billion in 2020.

The profit after tax (PAT) rose from N1.24 billion to N3.35 billion while gross earnings almost doubled, jumping from the previous year record of N3.4 billion to N6.65 billion, an achievement its board chairman, Olatunde Busari, attributed to the company’s strong fundamentals, resilience and drive to excel.

According to its 2020 financial statement, the group’s total assets grew by 85 per cent to N81.67 billion while earnings per share nearly tripled, increasing from N10.40 kobo to N28.09 kobo.

In the period, the company’s total expenses rose moderately, from N1.92 billion to N2.58 billion.

At the yearly general meeting held both virtually and physically in Lagos, the shareholders approved the proposed N8.51 kobo per share dividend payment and other key resolutions of the board.

Busari, who is also a senior advocate of Nigeria (SAN), said the dividend was commendable “given the challenges companies all over the world faced in the reporting year” stressing that the “shareholders are happy that the management of the company did very well.”

He also stressed that the company would continue to leverage emerging business opportunities to contribute to the country’s economic growth.

The Group Managing Director, Nonso Okpala, pointed out that the future was bright as the group’s investments continue to mature. He added that the firm would continue to leverage its strong cost optimisation culture to grow the bottom line and create value for stakeholders.

Okpala said: “We did very well last year, which is the reason we have been able to declare a dividend of N8.51 kobo. The good performance was as a result of the treasury activities that were done as well as some of the incomes from the subsidiary companies that we invested in. We are delighted about the performance.

“We have operated for 11 years during which we made remarkable investments in financial services. Those investments are getting mature.

We had recently exited our investment in NEM Insurance and we made a good return from it. That is indicative of the fact that there is a great prospect for the company. We hope that by next, some of our investment will come to the mainstream and the company will perform better.”