3M-2022 Brief Performance Review

By Kanayo John, Imperial Assets Research

United Capital (UCAP) Plc today, 13 April 2022 released its unaudited financial statements for the period-ended 31 March (3M-22) 2022 to the market. By this feat, it became the first quoted company to have made available its unaudited financials for period ending 31 March to the Nigerian Exchange Group (NGX) ahead of the 30-day deadline (after the due date).

Top and bottom-lines rises by 35.0%y/y and 39.1%y/y apiece

A quick analysis of the results showed that both Gross Earnings (GE) and Profit After Tax (PAT) expanded by 35.0% and 39.1% to settle at ₦4.21 billion and ₦2.31 billion respectively compared to the numbers achieved in 3M-2021. The growth in revenue was bolstered by improved returns in the following line items – investment income, and fees & commission income – which grew by 3.1% and 32.2% to settle at ₦1.64bn (38.9% of GE), and ₦1.75bn (41.5% of GE) respectively. This feat is highly commendable and showed management dexterity in navigating through the murky business environment laced with structural challenges and variability of yields.

We have a BUY recommendation on UCAP

We have an existing price target of ₦15.50 per share on UCAP. This gives an upside potential of 16.98% relative to market price of ₦13.25 as at the end of Thursday trading. We therefore maintained  our BUY rating on the shares of UCAP.

Kindly see the table below for detailed highlights.