The Board of Central Securities Clearing System (CSCS) Plc has 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 Executive Management for an incredible performance, despite the challenging operating environment. The total dividend of N3.7 billion, 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. However, 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, Chairman, Board of Directors of CSCS Plc, Mr. Oscar Onyema 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.