United Capital considers first-ever interim dividend and bonus in Q2’2024

The Board of United Capital Plc will review the Company’s Unaudited Financial Statements for the quarter ending June 30, 2024, along with a consideration for an interim dividend and bonus issuance during its upcoming board meeting.

This information was disclosed in a notice regarding the Company’s Q2 2024 board meeting and closed period, submitted to the Nigerian Exchange Limited (NGX) and obtained by Nairametrics.

This development is noteworthy as it marks the first time the investment bank is considering the issuance of an interim dividend, according to records tracked by Nairametrics.

According to a statement signed by the Company Secretary/ General Counsel, Dr, Leo Okafor, the meeting in Lagos on Tuesday, July 16, 2024, noted that the closed period for trading in the shares of the Company would commence on July 1, 2024, in respect of the Q2-2024 Financials

The statement reads:

“The Board of United Capital Plc (the “Company”) will meet in Lagos on Tuesday, July 16, 2024, to consider, among other things, the Company’s Unaudited Financial Statements for the quarter ending June 30, 2024 (the “Q2- 2024 Financials”) and a proposal for an interim dividend and bonus issuance.

In accordance with the post-listing requirements of the Nigerian Exchange Limited (“NGX”), the closed period for trading in the shares of the Company will commence on July 1, 2024, in respect of the Q2-2024 Financials.

Hence, no Insider of the Company and their connected persons may directly or indirectly deal in the securities of the Company until 24 hours after the release of the Q2-2024 Financials to NGX and by extension, the general public”.

The Board of Directors of the company had proposed that a dividend of N1.80 kobo per ordinary share of 50 kobo each amounting to N10.8 billion, be paid to shareholders upon approval at the Annual General Meeting. The proposed dividend is subject to appropriate withholding tax.

In 2022, the Investment Bank declared and paid N9 billion in dividends recommended by the board of directors for the full year 2022.

The dividend represents N1.50 for every 50 kobo ordinary shares.

United Capital Plc has 6,000,000,000 outstanding shares and a market capitalization of N130.5 billion as of the time of filing this report.

The company’s retained earnings are about N24.5 billion which allows them to pay dividends.

The company closed its last trading day on Wednesday, June 26, 2024, at N21.95 per share on the Nigerian Stock Exchange (NGX), recording a 0.5% gain over its previous closing price of N21.85.

United Capital began the year with a share price of N23.00 but has since lost 4.57% off the price valuation.

What you should know

• United Capital Plc reported its 2023 FY results showing total revenue rose by 71% year-on-year to N45.9 billion in 2023 from N26.9 billion earned in 2022.
• Profit Before Tax grew by 28.2% to N17.3 billion in 2023 from N13.5 billion recorded in 2022, indicating a growth in the overall profitability of the Group.
• Total Assets of the Group appreciated by 55% year-on-year to N931.9 billion by December 2023 from N601.9 billion as of December 2022.
• This was driven majorly by an 80% growth in investment securities. Shareholders’ Funds rose by 175.0% to N90.7 billion from N32.9 billion.