The Central Securities Clearing System Plc (CSCS) is set to diversify its business operations into other areas of the economy. Chairman of the company Mr Oscar Onyema disclosed this to shareholders at their 22nd Annual General Meeting in Lagos, for the financial year ended December 31, 2015.
Onyema noted that due to challenges facing their traditional source of revenue, they want to move into other lines of business in order to mitigate economic challenges. Stressing that CSCS also plans to clears for other exchanges in Africa.
On the company retained earnings, which some shareholders suggested should be paid out as a special dividend to compensate investors that have stayed long with the company.
Onyema pointed out that the board are aware of the situation in the economy and wants to build a company for the future with sustained growth.
Adding that a lot of money is going into investments and if there are left over, they can pay to shareholders as requested. For the 2015 financial year, CSCS recorded a total operating income of N7.60 billion which is below N8.24 billion that was reported same period in 2014.
Profit before tax dropped by 14.79 percent to N5.01 billion in 2015, when compared to N5.76 billion posted in 2014. Profit after tax for the period also decreased by 3.63 percent from N4.62 billion in 2014 to N4.46 billion in 2015.
However, despite the drop in bottom line, the board of directors were able to proposed 26 kobo dividend, this is in line with the company dividend policy which provides that payout of this nature should be 30 percent of profit after tax recorded in a year when dividend is declared.
Shareholders present at the meeting approved payment of the dividend that will credited into their respective accounts on May 19, 2016, same day of the AGM. The chairman assured shareholders that they will continue to build on their past gains and move the company to a stronger position within its sector.
He emphasized that in 2016, “Our aim shall be to strengthen our management team to keep it competitive and focused on executing business strategy as it relates to our core businesses, whilst implementing new business initiatives that will guarantee our sustainability as a profitable enterprise”.