SHAREHOLDERS of the Central Securities Clearing System Plc on Friday approved the proposed total dividend of N3.7bn by the board of the company.

They gave their nod during the company’s 28th annual general meeting in Lagos.

The company said it was reinforcing the value accretion to its equity owners, which had seen a notable rise in share price of the company over the past year.

CSCS said the N3.7bn dividend, which translated to 83.7 per cent payout ratio, reflected the resilient profitability of the company, notwithstanding the impact of lower trading activity on most Exchanges in the Nigerian capital market and inflationary pressures.

For further inquiries and updates visit;
www.innerkonsult.com
(Professional Accounting,Tax, and CAC Services)
WhatsApp:+2348038460036






“Consolidating on its diligent earnings diversification drive, the company grew revenue from core operations and ancillary services by 39.2 per cent to N6.4bn from N4.6bn in 2020, as it almost quadrupled earnings from ancillary services from N526m in 2020 financial year to N2.2bn in 2021 financial year,” it stated.

It added that income from ancillary services contributed 33.3 per cent and 21.5 per cent of operating revenue and total income for the year respectively, underpinning management’s strategy towards diversifying and strengthening the earnings fundamentals of the company, with the ultimate objective of creating sustainable and superior wealth for shareholders and its broader stakeholders.

Addressing shareholders, the Chairman, Board of Directors, CSCS Plc, Mr Oscar Onyema, said, “Notwithstanding the volatile operating environment and moderated capital flows, as reflected in the subdued capital market activities, the earnings fundamentals of your company remained resilient and indeed stronger than ever.


“This fact is evident in the impressive revenue growth of 39.2 per cent, driven by stellar growth in ancillary income. The equity market recorded one of the weakest secondary market activities in the past few years, with the average daily trade value of N3.9bn, some 10 per cent below the trading activity recorded in the 2020 financial year, explaining the tepid transaction fees.

“Albeit income from ancillary services recorded a significant boost, contributing N2.2bn or 21.5 per cent of total income in 2021FY, from N526m or 11.3 per cent of total income in 2020FY.”


The Chief Executive Officer, CSCS Plc, Mr Haruna Jalo-Waziri, said, “Reflecting the ingenuity of our participants and more importantly quick adoption of new remote access technologies, the Nigerian capital market remained active through the prolonged COVID-19 crisis.

“The collaboration of our regulator and participants has been incredible in sustaining our operational protocols and IOSCO PFMI standards.

“Though clearing and settlement activity waned by 10.2 per cent due to lower participation of foreign investors in the Nigerian equity market and a host of macro challenges, we are excited at the growth in our depository assets by 6.1 per cent to N23.0tn, reflecting new listings of securities across our multiple Exchange partners as well as issuers’ and investors’ confidence in the safety and secured accessibility of our systems.”