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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