Jul 18, 2017 - AFRICA PRUDENTIAL PLC. STATEMENT OF FINANCIAL POSITION. AS AT 30 JUNE 2017. Jun-17. Jun-16. Dec-16. Note.
AFRICA PRUDENTIAL PLC FINANCIAL STATEMENTS PERIOD ENDED 30 JUNE 2017
Contents Statement of profit or loss and other comprehensive income Statement of Financial Position Statement of cash flows Statement of changes in equity Notes to the financial statements
Page
1 2 3 4 5
AFRICA PRUDENTIAL PLC STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30 JUNE 2017 Note
Jun-17 N'000
Jun-16 N'000
Dec-16 N'000
Registrars fee income
1A
464,268
412,804
994,394
Net investment income
1B
1,003,240
535,742
1,424,109
1,467,508
948,546
2,418,503
1C
23,885
13,132
29,214
Impairment loss on goodwill
2
(62,500)
-
(147,460)
Personnel expenses
3
(190,691)
(140,322)
(353,413)
Other operating expenses
4
(267,653)
(195,413)
(455,492)
9&10
(19,759)
(20,453)
(45,416)
950,790
605,490
(86,504)
(342,865)
864,286
262,625
Other income
Depreciation and amortization Profit before tax Income tax expense
16
Profit for the period
1,445,936 (426,763) 1,019,173
Other Comprehensive Income, net of income tax -
Items that will not be reclassified subsequently to profit or loss:
Items that may be reclassified subsequently to profit or loss: Fair value loss on quoted equity Fair value loss on unquoted equity
19
Total comprehensive income for the period Basic earnings per share
20
1
-
-
115,571 -
-
29,741 (213,108)
979,857
262,625
835,806
43
13
51
AFRICA PRUDENTIAL PLC STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017
Assets Cash and cash equivalents Financial assets (Available For Sale) Financial assets (held to maturity) Trade and other receivables Inventory Other assets Property, plant and equipment Intangible asset Goodwill Deferred tax
Note
Jun-17 N'000
Jun-16 N'000
Dec-16 N'000
5 6a 6b 7 8 9 10 11 12 16b
4,522,054 3,282,080 9,912,781 288,500 16,500 221,100 191,098 14,840 193,489 -
5,469,523 3,299,523 6,996,879 222,064 15,710 135,109 180,062 10,389 397,493 51,168
4,666,989 3,116,156 8,136,794 313,771 15,710 96,760 202,269 17,242 255,989 -
Total assets Liabilities Customers' deposits Creditors and accruals Taxation Deferred tax liabilities
13 14 16c 16
Total liabilities Shareholders' equity Share capital Share premium Retained earnings Other reserves
17 17a 18 19
Total equity Total equity and liabilities
18,642,441
16,777,920
16,821,680
12,980,294 677,766 52,428 1,322
12,178,380 508,613 113,334 -
11,742,697 382,031 144,856 1,322
13,711,810
12,800,327
12,270,906
1,000,000 624,446 4,036,160 (729,975)
1,000,000 624,446 3,015,326 (662,179)
1,000,000 624,446 3,771,874 (845,546)
4,930,631
3,977,593
4,550,774
18,642,441
16,777,920
16,821,680
The financial statements were approved by the Board of Directors on 18th July 2017 and signed on its behalf by:
Chief Mrs Eniola Fadayomi (OFR) FRC/2013/IODN/00000002718
} } Chairman }
Peter Ashade FRC/2013/ICAN/00000002719
} } Managing Director }
Olufemi Adenuga FRC/2013/ICAN/00000002720
} } Chief Financial Officer
2
AFRICA PRUDENTIAL PLC STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 30 JUNE 2017 Notes Cash flows from operating activities Profit after tax Adjustments to reconcile net cash provided: Depreciation Amortization Impairment loss on goodwill Income tax expense Withholding tax credit utilized Assets written off
Jun-16 N'000 262,625
Dec-16 N'000 1,019,173
17,355 2,403 62,500 86,504 (40,438) -
20,453 342,865 -
992,610
625,943
Changes in assets and liabilities: (Increase)/decrease in inventory (Increase)/decrease other assets (Increase)/decrease in trade and other receivables Increase/(decrease) in Customer deposits Increase/(decrease) in creditors and accruals
(790) (124,340) 25,271 1,353,167 295,735
421 (57,163) (48,552) (362,757) (25,855)
421 (18,814) (127,805) (798,438) (170,848)
Net cash from/(used in)operations
2,541,653
132,037
509,437
(271,060)
(254,764)
(139,023)
254,673
Tax paid
10 11 2 16 16c
Jun-17 N'000 864,286
16c
Net cash (used in)/generated from operating activities
(138,494) 2,403,159
Cash flows from investing activities Purchase of property, plant & equipment Acquisition of financial assets Acquisition of intangible asset
10 11
Net cash used in investing activities Cash flow from financing activities Dividend paid
18
Net cash flow (used in)/from financing activties Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at 1 January Cash and cash equivalents
5
3
(6,184) (1,941,910) -
41,252 4,164 147,460 426,763 (16,182) 2,291 1,624,921
(88,811) (2,811,147) (9,872)
(1,948,094)
(41,582) (1,671,231) (787) (1,713,600)
(600,000)
(860,000)
(860,000)
(600,000)
(860,000)
(860,000)
(144,935) 4,666,989
(2,712,623) 8,182,146
(3,515,157) 8,182,146
4,522,054
5,469,523
4,666,989
(2,909,830)
AFRICA PRUDENTIAL PLC STATEMENT OF CHANGES IN EQUITY AS AT 30 JUNE 2017 30 JUNE 2017
Balance, beginning of the year Profit for the period Other comprehensive income for the period,net of income tax Dividend paid (2016 Final) Balance, end of period
Other Reserves N'000
Share Premium N'000
Share capital N'000
Retained earnings N'000
Total equity N'000
(845,546)
624,446
1,000,000
3,771,874
4,550,774
864,286
864,286
-
115,571 -
-
-
-
-
-
-
(600,000)
115,571 (600,000)
(729,975)
624,446
1,000,000
4,036,160
4,930,631
Other Reserves N'000
Share Premium N'000
Share capital N'000
Retained earnings N'000
Total equity N'000
(662,179)
624,446
1,000,000
3,612,701
4,574,968
1,019,173
1,019,173
31 December 2016
Balance, beginning of the year Profit for the year Other comprehensive income for the year Dividend paid (2015 Final) Balance, end of the year
-
(183,367) (845,546)
-
-
-
-
-
-
624,446
4
1,000,000
(860,000) 3,771,874
(183,367) (860,000) 4,550,774
AFRICA PRUDENTIAL PLC NOTES TO THE FINANCIAL STATEMENTS PERIOD ENDED 30 JUNE 2017 1
1A
Revenue Registrars Fees Income (note 1A) Net investment income (note 1B) Other income (note 1C)
Jun-17 N'000 464,268 1,003,240 23,885
Jun-16 N'000 412,804 535,742 13,132
Dec-16 N'000 994,394 1,424,109 29,214
1,491,393
961,678
2,447,717
Registrars Fees Income Fees and commission income comprises fixed periodic administration fees, transaction processing fees, fees for managing corporate actions, fees for professional and IT services and fees earned on the administration of client funds which is value added tax inclusive. Administration fees are recognised evenly over the service period. Transaction based fees are recognised at the time of processing the related transactions. Revenues from corporate actions are recognised in line with the stage of completion and fees in relation to administration of client funds are recognised as they accrue.
1B
Net investment income Net investment income includes investment income from held to maturity investments such as treasury bills, term deposits, commercial paper, bankers acceptance and bonds. Jun-17 Jun-16 Dec-16 Interest income N'000 N'000 N'000 Interest on term deposit interest on treasury bills interest on bonds
219,953 668,923 114,364 1,003,240
1C
284,420 90,990 160,332 535,742
493,347 629,237 301,525 1,424,109
Other income This comprises of income earned from investment in available for sale financial assets, search fees, photocopies, and disposal of fixed assets Jun-17 N'000 14,036 9,849
Dividend Income earned on available for sale financial assets Write back of provision no longer required Others (aggregate of immaterial items)
2
3
Dec-16 N'000 14,340 4,120 10,754
23,885
13,132
29,214
Impairment loss/ (Write back) on trade receivables Impairment loss on goodwill
62,500
-
5,956 141,504
Net impairment loss on trade receivables
62,500
-
Impairment charges
147,460
Personnel expenses Wages and salaries Contributions to defined contribution plans Medical expenses Performance bonus Other employee benefits
4
Jun-16 N'000 9,560 3,572
111,442 3,335 3,838 71,901 175
Other operating expenses Consultancy fees AGM/EGM expenses Asset written off Directors fees and other emoluments Audit fees Training Rent, rates and utilities Repairs and maintenance Donations Corporate Social responsibility Advert and business promotion Annual dues and subscription Insurance Bank charges Internet and communication Travel expenses Legal and professional expenses Other expenses
5
106,177 2,859 4,765 24,985 1,536
190,691
140,322
71,185 32,529 22,556 5,250 3,125 17,567 18,496 18,929 17,289 5,059 2,262 4,125 19,319 6,771 3,483 19,708
58,427 23,053 17,963 5,250 943 16,336 13,089 21,692 5,640 4,153 2,237 1,724 16,475 3,396 1,047 3,988
267,653
195,413
214,232 8,155 10,881 71,800 48,345 353,413
141,989 42,837 269 53,423 10,000 4,249 36,832 28,738 32,587 14,849 7,178 4,092 8,236 25,374 6,089 12,469 26,281 455,492
AFRICA PRUDENTIAL PLC NOTES TO THE FINANCIAL STATEMENTS PERIOD ENDED 30 JUNE 2017 5
Cash and cash equivalents
Jun-17 N'000
Jun-16 N'000
Dec-16 N'000
Cash in hand Current account with banks Short term deposits
140 384,228 4,137,686
70 827,210 4,642,243
70 564,029 4,102,890
4,522,054
5,469,523
4,666,989
Jun-17 N'000
Jun-16 N'000
Dec-16 N'000
64,112 28,518 3,430,056 615,000
766,569 104,142 3,142,076 629,456
1,222,723 2,235,167 645,000
4,137,686
4,642,243
4,102,890
5A
Maturity profile of short term deposits At call 0 - 30 days 30 - 60 days 60 - 90 days
Cash and short term deposit in the statement of financial position comprise cash at bank and in hand and short term deposit with an original maturity of three months or less. The fair value of cash and cash equivalents equates their carrying amount.
6
6a
6b
Financial assets
Available for Sale Quoted equity Unquoted equities
Jun-17 N'000
Jun-16 N'000
Dec-16 N'000
285,421 2,996,659
89,756 3,209,767
119,497 2,996,659
3,282,080
3,299,523
3,116,156
Jun-17 N'000
Jun-16 N'000
Dec-16 N'000
1,010,800 252,323 8,649,658
1,031,952 348,262 1,086,072 4,530,593
1,021,952 351,994 1,047,393 5,715,455
9,912,781
6,996,879
8,136,794
Held to maturity Edo State Government Bond 2017 Bayelsa State Government Bond 2017 Local Contractor Bond 2016 Treasury Bills
State Government Bonds of Edo and Bayelsa, Local contractor bonds and Treasury bills are held to maturity and accounted for at amortised cost.
7
Jun-17 N'000 225,077 53,580 20,548 299,205 (10,705)
Trade and other receivables Trade debtors Witholding tax receivable Staff Loans & advances Allowances for doubtful accounts (note 8A)
288,500
Jun-16 N'000 137,168 59,996 48,059 245,223 (23,159)
Dec-16 N'000 226,133 66,397 31,946 324,476 (10,705)
222,064
313,771
Trade receivables are recognized and carried at original invoiced amount less an allowance for any uncollectable amount. An estimate of doubtful debt is made when collection of the full amount is no longer probable.
7a
Jun-17 N'000
Reconciliation of impairment allowance
Jun-16 N'000
At 1 January Bad debts written off (Decrease)/Increase in allowance for the period
10,705
23,159
-
-
At 31 December
10,705
23,159
6
Dec-16 N'000 23,159 (18,410) 5,956 10,705
AFRICA PRUDENTIAL PLC NOTES TO THE FINANCIAL STATEMENTS PERIOD ENDED 30 JUNE 2017
Jun-17 N'000 8
Dec-16 N'000
Inventory Client stationery
9
Jun-16 N'000
16,500
15,710
15,710
Other Assets
N'000
N'000
Prepayments Cash advance Software development cost
158,263 952 61,885
91,595 1,204 42,310
43,319 1,422 52,019
Prepayments
221,100
135,109
96,760
7
N'000
AFRICA PRUDENTIAL PLC NOTES TO THE FINANCIAL STATEMENTS PERIOD ENDED 30 JUNE 2017 10
Property, plant and equipment Motor vehicles N'000
Furniture fittings & equipments N'000
Building N'000
Computer equipment N'000
Cost Balance at 1 January 2017 Additions Balance at 30 June 2017
97,892 97,892
89,310 1,462 90,772
70,478 70,478
139,318 4,722 144,040
396,998 6,184 403,182
Accumulated depreciation Balance as at 1 January 2017 Depreciation charge for the period Balance at 30 June 2017
9,661 1,020 10,681
63,673 4,477 68,150
46,330 3,447 49,777
75,065 8,411 83,476
194,729 17,355 212,084
Carrying amount At 30 June 2017
87,211
22,622
20,701
60,564
191,098
At 31 December 2016
88,231
25,637
24,148
64,253
202,269
2017 N'000 11
Total N'000
2016 N'000
Intangible asset Cost At 1 January Additions during the period
45,391 -
35,519 9,872
At 30 June
45,391
45,391
Accumulated amortization At 1 January Amortization during the period
28,149 2,403
23,985 4,164
At 30 June
30,552
28,149
Net carrying amount At 30 June
14,840
17,242
8
AFRICA PRUDENTIAL PLC NOTES TO THE FINANCIAL STATEMENTS PERIOD ENDED 30 JUNE 2017 12 Goodwill arising from business combination Goodwill arising on the acquisition of UAC Registrars is carried at cost as established at the date of acquisition o business (30 May, 2013) less accumulated impairment lossess if any. In 2014, the company commenced the liqu of the subsidiary to consolidate its operations. The liquidation process was concluded in October, 2015. Goodwill on acquisition of the subsidiary is however still being carried in the books and tested for impairment an required by the standard. For the purpose of testing for impairment, goodwill was allocated to identifiable cash g units on acquisition of the subsidiary and transferred to the company on liquidation. The recoverable amount of t generating unit is determined based on a value in use calculation which uses cash flow projections based on fina budgets approved by the directors covering a five-year period, and a discount rate of 20% per annum.
Carrying value of goodwill
Jun-17 N'000
Jun-16 N'000
Dec-16 N'000
At 1 January Impairment lossess for the period
255,989 (62,500)
397,493 -
397,493 (141,504)
193,489
397,493
255,989
9
AFRICA PRUDENTIAL PLC NOTES TO THE FINANCIAL STATEMENTS PERIOD ENDED 30 JUNE 2017
13 This represents dividend, return monies and other interests received from clients but yet to be claimed as follows:
Public offers Return money- public offer
Jun-17 N'000 4,029 12,976,265
Jun-16 N'000 4,557 12,173,823
Dec-16 N'000 4,557 11,738,140
12,980,294
12,178,380
11,742,697
14 Creditors and accruals Accounts payable Accrued expenses
15 Post-employment benefits Defined contribution plan Provision for the period Release to PFAs
619,530 58,236
501,703 6,910
305,849 76,182
677,766
508,613
382,031
Jun-17 N'000
Jun-16 N'000
Dec-16 N'000
3,335
2,859
-3,335
-2,859
8,155 -8,155
-
-
-
The staff pension provision is a defined contribution scheme where the employees and the company each contributes a minimum of 18% of total emolument to the pension scheme as required by the Pension Reform Act 2014. The company's contribution to the scheme is charged to the statement of profit and loss and other comprehensive income.
10
AFRICA PRUDENTIAL PLC NOTES TO THE FINANCIAL STATEMENTS PERIOD ENDED 30 JUNE 2017 16
Income Taxes Income tax expense for the period comprises current and deferred taxes Jun-17 N'000 16a Current income tax Income tax Education tax IT tax recovered Under-provision in prior years
49,151 3,277
16b Deferred Tax liability At 1 January Charge to profit or loss Deferred tax liability/(asset)
16c At 1 January Charge for the period Witholding Tax Credit Utilised During the period Payment in the period
106,251 7,083
Dec-16 N'000
34,076
229,531
133,678 11,178 (105) 229,522
86,504
342,865 -
374,273 52,490
86,504
342,865
426,763
1,322 -
(51,168) -
(51,168) 52,490
1,322
(51,168)
1,322
Deferred tax charge Income tax expense
Jun-16 N'000
144,856 86,504 (40,438) (138,494)
41,529 342,865 (16,182) (254,878)
41,529 374,273 (16,182) (254,764)
52,428
113,334
144,856
16d Reconciliation of effective to statutory tax rate
Profit before tax IT tax recovered Company income tax Education tax Under-provision in prior year Effective Tax Rate Adjustments: Information tecnology tax Education tax Effect of permanent differences Statutory Tax Rate
2017 N'000 950,790 49,151 3,277
5 1
2016 N'000 1,445,936 (105.0) 133,678 11,178
34,076
4
-
1,037,294
10
(3,277) 234,986 1,269,003
11
%
100
-1 21 30
1,590,687
105 (11,178) 300,103 1,879,717
%
100 9 1
10
-1 21 30
AFRICA PRUDENTIAL PLC NOTES TO THE FINANCIAL STATEMENTS PERIOD ENDED 30 JUNE 2017 Jun-17 N'000 17
Jun-16 N'000
Dec-16 N'000
Share capital: Authorised: Two billion ordinary shares of 50k each
1,000,000
1,000,000
1,000,000
Issued and fully paid: Two billion ordinary shares of 50k each
1,000,000
1,000,000
1,000,000
624,446
624,446
624,446
3,771,874 (600,000) 864,286
3,612,701 (860,000) 262,625
3,612,701 (860,000) 1,019,173
4,036,160
3,015,326
3,771,874
At 1 January Fair value gains/(lossess) on Quoted Equity Fair value (losses)/gains on Unquoted Equity
(845,546) 115,571
(662,179) -
(662,179) 29,741 (213,108)
At end of period
(729,975)
(662,179)
(845,546)
17a Share premium At end of period 18
Retained Earnings At 1 January Dividend paid (2015 final) Dividend paid (2016 final) Transfer from statement of profit or loss
19
Other Reserves
Other reserves represent the cummulative gains and loses arising on revaluation of available for sale asset that have been recognized in other comprehensive income
20
Basic earnings per ordinary share Profit attributable to shareholders (N'000) Number of ordinary share in issue ('000) Earnings per share (kobo)
864,286 2,000,000 43
262,625 2,000,000 13
1,019,173 2,000,000 51
Basic Earnings Per Share is calculated by dividing the profit or loss attributable to ordinary shares of the company by the weighted average number of ordinary shares outstanding during the period. There have been no transactions between the reporting date and the date of completion of these financial statements which will require restatement of the earnings per share calculation
12
