CSCS Grows Revenue by 39.2%, Pays N3.7bn Dividends Katchey Laboratory Will Complement Free Trade Agreement In Africa - Abiodun
approved by elated shareholders, who commended the Executive Management for an incredible performance, despite the challenging operating environment.
The N3.7 billion dividend, which translates to 83.7 per cent payout ratio, reflects the resilient profitability of the Company, notwithstanding the impact of lower trading activity on most Exchanges in the Nigerian capital market and inflationary pressures. Consolidating on its diligent earnings diversification drive, the Company grew revenue from core operations and ancillary services by 39.2 per cent to N6.4 billion from N4.6 billion in 2020, as it almost quadrupled earnings from ancillary services from N526million in 2020 financial year to N2.2 billion in 2021 financial year. Notably, 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, Mr. Oscar Onyema, OON, Chairman, Board of Directors of CSCS Plc 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 N3.9billion, some 10 per cent below the trading activity recorded in 2020 financial year, explaining the tepid transaction fees. Albeit income from ancillary services recorded a significant boost, contributing N2.2billion or 21.5 per cent of total income in 2021FY, from N526million or 11.3 per cent of total income in 2020FY.
This performance reinforces the capacity of the Management in delivering on the Board’s vision result of diversifying the business and enhancing the value accretion prospect to shareholders in a sustainable manner. More importantly, my colleagues and I on the Board of your Company, are excited at the prospect for new offerings arising from strategic partnerships and new initiatives. In our oversight role, we are working with the Management to invest relevant resources towards exploring new frontiers for growth, especially as these initiatives are expected to foster retail investor penetration and broader capital market growth.”
While commenting on the outlook for the business, the Chairman noted: “typical of a pre-election year, 2022 comes with its unique macro challenges but I am optimistic on the earnings capacity and overall resilience of our business, as we hope to consolidate on the strong foundations and extract synergies opportunities with our participants and partners in sustaining the positive trajectory of the business. Hence, with the support of shareholders and other stakeholders, CSCS would continue to deliver superior performance and create wealth for shareholders.
In the same vein, Mr. Haruna JaloWaziri, the Chief Executive Officer, CSCS Plc 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.”
Ogun State Government partnership with Katchey Company Limited - producer of laboratory equipment and consumables will compliment the African Continental Free Trade Agreement(ACFCTA) as it open its laboratory station in the state
The laboratory complex expected to house manufacturing of laboratory equipment and consumables, training center for laboratory analysts and bio-engineers among others
Governor Dapo Abiodun who stated this in Abeokuta, said that the establishment of the firm's station in the state would supplement ACFCTA entered into by Nigeria and other African countries to allow free trade across the continent
He hailed the laboratory maker firm for building its station in the state, noting that the country hasn't been able to tap into the free trade zone because most of the goods expected to be exported were not certified worthy of export
Abiodun said that the state had again fulfilled its public private partnership with the citing of Katchey's laboratory in the state to make goods that are meant for export be certified for the international market.
He disclosed that the laboratory complex was a welcome development in the health sector of the country, especially at a time the globe was affected by COVID-19.
"COVID-19 made us realize how unprepared we were for a medical emergency, it is my joy that this initiative will strengthen our health sector," he added
The governor called for more investors to partner with the state, saying that his administration was looking forward to partnering with the initiative particularly through the Olabisi, Onabanjo University Teaching Hospital and the School of Health Technology.
Speaking, the Minister of State, Federal Ministry of Mines and Steel Development, Dr. Uche Ogah and his counterpart in the Trade, Industry and Investment, Niyi Adebayo, who both commended the initiative by the company which they said would promote self sufficiency in the country, said that the Federal Government would continue to do all it can to end medical tourism.