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By Chinwendu Obienyi
In keeping to its commitment of ensuring strong and sustainable returns to its shareholders, the Board of Central Securities Clearing System (CSCS) Plc at the weekend, proposed a total dividend of N3.7 billion to its shareholders, reinforcing the value accretion to its equity owners, who have seen notable rise in share price of the company over the past year.
The dividend proposal, which was announced at the company’s 28th Annual General Meeting in Lagos, was unanimously approved by elated shareholders, who commended the 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 N526 million in 2020 financial year to N2.2 billion in 2021 financial year.
Notably, income from ancillary services contributed 33.3 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 at the meeting, Oscar Onyema, Chairman, Board of Directors of CSCS Plc, said that the company remained resilient and indeed stronger than ever, despite the volatile operating environment and moderated capital flows, as reflected in the subdued capital market activities.
According to him, the 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.
While commenting on the outlook for the business, Onyema said “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”.
