29 Oct 2015 - Property, plant and equipment. 2,361,888. 2,469,421. 28,425. 39,541 .... 29,889,266. 25,830,428. 1,234,352
CUSTODIAN AND ALLIED PLC
CONSOLIDATED FINANCIAL REPORTS
FOR THE PERIOD ENDED 30 Sept., 2015
CUSTODIAN AND ALLIED PLC REPORTS AND ACCOUNTS EXECUTIVE SUMMARY SHEET
GROUP N '000 30 Sept., 2015
N '000 31 Dec., 2014
COMPANY N '000 N '000 30 Sept., 2015 31 Dec., 2014
Cash and cash equivalents
21,065,022
15,868,039
4,253,130
1,807,249
Financial assets
15,005,920
11,946,916
45,702
52,405
Investment properties
7,014,799
7,350,811
3,212,569
3,515,000
Property, plant and equipment
2,361,888
2,469,421
28,425
39,541
Investment contract liabilities
3,640,815
3,030,332
-
-
Interest-bearing loans and borrowings
2,462,760
2,125,363
-
-
Equity attributable to owners of the parent
25,277,965
22,486,856
12,627,469
11,347,750
Total Assets
55,836,741
48,864,423
13,861,821
12,137,877
N '000 30 Sept., 2015
N '000 30 SEPT., 2014
N '000 30 Sept., 2015
N '000 30 SEPT., 2014
20,366,507
18,487,422
1,808,145
2,409,765
1,746,125
1,797,330
1,523,811 -
368,898
10,815
63,621
-
-
Gross Revenue
Gross Premium Income Investment Income
Fees and Commissiom
Other Operating Income
Operating Expenses
Reinsurance Expenses
Underwriting Expenses Net Claims Expenses
Management expenses Finance costs
Total comprehensive income for the period, net of tax EPS - Basic (in kobo) Net assets per share (in kobo)
15,576,270 1,866,523
513,949
(12,438,669) 7,076,881
1,781,264
3,580,524
14,557,993 1,814,406
(11,557,463) 7,312,850
-
-
1,598,031
-
1,460,190 -
-
2,646,582
-
-
-
(3,547,768)
(3,035,255)
(199,275)
(94,758)
(74,766)
3,825,371
3,426,808
2,191,601
1,329,999
62
52
37
23
430
360
215
177
-
(163,812) -
CUSTODIAN AND ALLIED PLC STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER, 2015
Assets
GROUP 30 Sept., 2015 Note
31 Dec., 2014
COMPANY 30 Sept., 2015 31 Dec., 2014
=N='000
=N='000
=N='000
=N='000
850,000 2,361,888 82,296 7,014,799 7,290,805
850,000 2,469,421 84,362 7,350,811 668,166 7,760,736
28,425 3,212,569 6,209,669 -
39,541 3,515,000 6,209,669 409,891 -
17,599,788
19,183,496
9,450,663
10,174,101
Non-curent assets Statutory deposits Property, plant and equipment Intangible assets Investment properties Investment in subsidiaries Investment in associates Reinsurance assets
15 14 13 12 10 11 7
Curent assets Other receivables and prepayments Deferred acquisition costs Financial assets
9 8 5
1,510,534 541,233 15,005,920
1,117,538 556,955 11,946,916
112,326 45,702
104,122 52,405
Trade receivables Cash and cash equivalents
6 4
114,244 21,065,022
191,479 15,868,039
4,253,130
1,807,249
38,236,953
29,680,927
4,411,158
1,963,776
55,836,741
48,864,423
13,861,821
12,137,877
2,940,933 6,412,357 9,826,262 5,383,786 714,627 25,277,965 669,510 25,947,475
2,940,933 6,405,632 (140,120) 7,837,331 4,779,369 663,711 22,486,856 547,139 23,033,995
2,940,933 6,412,357 3,274,179 12,627,469
2,940,933 6,405,632 (140,120) 2,141,305 11,347,750
12,627,469
11,347,750
2,462,760 548,262 3,640,815
2,125,363 578,818 3,030,332
268,272 -
268,272 -
6,651,837
5,734,513
268,272
268,272
18,071,356 857,782 2,737,359 1,570,932
15,806,783 1,709,081 1,481,604 1,098,447
594,484 371,596
433,986 87,869
Total current liabilities
23,237,429
20,095,915
966,080
521,855
Total liabilities
29,889,266
25,830,428
1,234,352
790,127
Total equity and liabilities
55,836,741
48,864,423
13,861,821
12,137,877
- Equity : Fair Value through Profit or Loss (FVTPL) Available For Sale (Cost) - Debt : Held to Maturity : Loans and Receivable
Total Assets
812,569 4,227,925 9,239,476 725,950
836,536 4,083,178 6,971,249 55,953
45,702 -
50,575 1,830
Equity and Liabilities Equity Issued share capital Share premium Treasury Shares Retained earnings Contingency reserve
Other components of equity
Available-for-sale reserve Equity attributable to owners of the parent Non-controlling interests Total equity
23 24 25 25 25 25 25
Liabilities Non-curent liabilities Interest-bearing loans and borrowings Deferred tax liabilities Investment contract liabilities
22 21 17
Total non-current liabilities Curent liabilities Insurance contract liabilities Trade payables Other payables Current income tax
16 18 19 20
1
CUSTODIAN AND ALLIED PLC
STATEMENT OF COMPREHENSIVE INCOME FOR PERIOD ENDED 30 SEPTEMBER 2015
GROUP
30 SEPT., 2015
30 SEPT., 2014
=N='000
UNAUDITED
=N='000
31 DEC., 2014
=N='000
AUDITED
Gross Revenue
26
20,366,507
18,487,422
25,200,119
Operating Expenses
27
(12,438,669)
(11,557,463)
(16,596,909)
Net fair value gains/(losses)
28
Management expenses
30
Net realised gains/(losses) Finance costs
Share of Result of Associate
29
31
Profit before taxation
(496,349)
1,898
1,182,388
-
(3,547,768)
(3,035,255)
(94,758)
(74,766)
-
-
646,143
6,173
(4,118,179) (100,129) 111,528
30 SEPT., 2015
=N='000
COMPANY
30 SEPT., 2014
UNAUDITED
1,808,145 -
=N='000
1,523,811 -
(403,617)
1,440,663
(199,275) -
31 DEC., 2014
=N='000
AUDITED
2,324,092 -
-
440,358
-
(163,812) -
4,356
(206,862) -
-
4,971,351
3,821,836
3,774,455
3,159,858
50,916
266,950
460,144
Total comprehensive income for the year, net of tax
3,825,371
3,426,808
4,548,847
2,191,601
1,329,999
2,228,958
– Owners of the parent
3,703,000
3,319,644
4,393,885
2,191,601
1,329,999
2,228,958
3,825,371
3,426,808
4,548,847
2,191,601
1,329,999
2,228,958
62
52
70
37
23
38
25,277,965
21,176,179
22,486,856
12,627,469
10,395,984
11,347,750
5,881,866
5,881,866
5,881,866
5,881,866
5,881,866
5,881,866
430
360
382
215
177
193
Income tax expenses
(1,196,896)
Profit after taxation
Other comprehensive income:
Net gain/(losses) on available-for-sale assets, net of tax
Other comprehensive income for the year, net of tax
32
Profit attributable to:
– Non-controlling interests
(661,978)
50,916
266,950
122,371
107,164
5,148,746
2,645,916
1,359,999
2,561,944
4,088,703
2,191,601
1,329,999
2,228,958
(1,060,043)
460,144
154,962
(454,315)
-
(30,000)
-
-
-
-
-
(332,986)
-
-
Earnings/(loss) per share: Basic earnings/(loss) per share (kobo) Net assets Total shares Net assets per share
33
2
CUSTODIAN AND ALLIED PLC
STATEMENT OF CHANGES IN EQUITY FOR PERIOD ENDED 30 SEPTEMBER 2015 Attributable to owners of the Parent Issued share capital =N='000
GROUP
2,940,933
At 1 January 2015
Profit for the year Change During the period Disposal of Treasury Shares Share Premium-Disposal of Treasury Shares Other comprehensive income Transfer between reserves Dividend Paid At 30 September 2015 At 1 January 2014 Profit for the year Other Comprehensive Income Transfer between reserves Dividends Paid Goodwill arising on consolidation Reinstatement of Treasury Shares
-
Share premium =N='000
6,405,632
7,837,331
6,725
3,652,084 -
6,412,357 6,405,632
5,554,468
4,128,408
2,940,933 2,940,933
Issued share capital =N='000
6,405,632
Share premium =N='000
7,837,331
-
(140,120)
-
663,711
-
650,961
50,916 -
714,627
-
-
714,627
-
(140,120)
-
4,779,369
-
6,405,632
2,140,666
-
-
2,940,933
6,405,632
2,141,314
-
-
203,567 460,144 -
(140,120)
Attributable to owners of the Company Other Contin- gency Components Treasury reserve of Equity Shares =N='000 =N='000 =N='000
Retained earnings =N='000
Available-forsale reserve =N='000
-
2,940,933
Profit or loss for the year
Treasury Shares =N='000
140,120 604,417 5,383,786 5,383,786
6,412,357
Other Components of Equity =N='000
-
(604,417) 10,884,998 (1,058,736) 9,826,262
2,940,933
2,940,933
At 1 January 2015
(140,120) (140,120)
663,711
Available-forsale reserve =N='000 -
2,191,601
Dividend Paid Disposal of Treasury Shares Share Premium-Disposal of Treasury Shares Other comprehensive income At 30 September 2015 2,940,933 2014
(1,058,736)
6,412,357
Issued share capital =N='000
Share premium =N='000
2,940,933
-
2,800,813
140,120
6,725
6,405,632
Profit or loss for the year
At 31 December 2014
4,779,369
-
COMPANY
Transfer Between Reserves Dividend paid
Contin- gency reserve =N='000
3,933,741 (650,961) (999,917)
At 31 December 2014
At 1 January 2014
Retained earnings =N='000
3,274,179
Retained earnings =N='000
-
Contin- gency reserve =N='000 -
912,264
Other Components of Equity =N='000
-
-
-
-
-
Treasury Shares =N='000 -
-
Available-forsale reserve =N='000 -
2,228,958 (999,917)
140,120 2,940,933
6,405,632
2,141,305
-
-
(140,120) (140,120)
3
-
Total =N='000
Non-controlling interests
Total equity =N='000
22,486,856 -
547,139
23,033,995 -
3,652,084 140,120 6,725 50,916 26,336,701 (1,058,736) 25,277,965
122,371
669,510 669,510
3,774,455 140,120 6,725 50,916 27,006,211 (1,058,736) 25,947,475
19,092,888 3,933,741 460,144 (999,917) -
429,926
19,522,814
22,486,856
Total =N='000 11,347,111 11,347,759 2,191,601 (1,058,736) 140,120 6,725 12,627,469
Total =N='000 2,940,933 10,118,709 2,228,958 (999,917) 11,347,750
154,962
(37,749) 547,139
4,088,703 460,144 (999,917) (37,749) 23,033,995
CUSTODIAN AND ALLIED PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 4 Cash and cash equivalents
Cash-in-hand Balances held with local banks Balances held in domicilliary accounts Balances held with foreign banks Reserve with Pension Custodian Placements with banks Impairment on cash and cash equivalents
September
GROUP 2015 =N='000
2014 =N='000
242 1,429,583 504,697 1,121,778 275,989 17,798,685 (65,952) 21,065,022
405 1,915,236 130,617 2,829 176,350 15,707,433 (56,157) 17,876,713
Dec
2014 =N='000
71 1,194,902 156,493 790,427 183199 13,601,598
(58,651) 15,868,039
COMPANY September 2015 =N='000
Dec 2014 =N='000
12,217 -
37,892 -
4,240,913
1,365,228
1,781,016
4,253,130
1,403,120
1,807,249
26,233
Bank placements are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Company. All deposits are subject to an average variable interest rate of 11%p.a. (2014: 11%). Reserve with Pension Custodian relates to mandatory cash reserve placed with First Custodians Limited the custodian for our pension subsidiary's managed assets. The carrying amounts disclosed above reasonably approximate fair value at the reporting date. 5 Financial assets
The Company's financial assets are summarised by categories as follows:
Available for saleAvailable-for-sale Held to maturity -Held-to-maturity Amortised cost - Amortised cost Fair value through profit or loss Loans and receivables Loans and receivables Total financial assets
GROUP September 2015 2014 =N='000 =N='000
Dec
2014 =N='000
COMPANY September 2015 2014 =N='000 =N='000
Dec 2014 =N='000
50,575 1,830 52,405
4,227,925 9,239,476 812,569 725,950 15,005,920
3,283,875 2,179,740 1,314,929 2,611,884 9,390,428
4,083,178 6,971,249 836,536 55,953 11,946,916
45,702 45,702
66,495 66,495
649,172 3,578,753 4,227,925
453,800 2,830,075 3,283,875
571,019 3,512,159 4,083,178
-
-
(a) Available-for-sale Quoted equity securities Unquoted securities at cost Total available-for-sale
-
Quoted equity securities were fair valued using quoted prices from the Nigerian Stock Exchange (NSE). Unquoted securities were fair valued using the year's average market price from Over-the-counter market and where not available, a valuation based on average of five years' dividend received at the company's annual rate of return. (b) Held-to-maturity - Amortised cost Federal Government Bonds State Government Bonds Corporate Bonds T/Bills and Tenor Deposits Greater than 90 days and Others Impairment on held-to-maturity financial instruments Total held-to-maturity
927,389 466,314 5,386,886 2,461,168 (2,279) 9,239,478
CUSTODIAN AND ALLIED PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Continued 5 Financial assets - continued (c) Loans and receivables Corporate Loans Loans to policy holders Mortgage loans Other loans Staff Loans and advances Impairment on loans and receivables Total loans and receivables
September 2015 =N='000 496,566 20,022 20,965 18,533 169,864 725,950
499,541 479,389 1,445,724 1,612,644 (2,279) 4,035,019
GROUP 2014 =N='000 689,327 20,137 10,921 32,409 3,091 (11,029) 744,856
536,647 512,049 2,869,387 3,053,166 6,971,249
-
-
-
-
-
-
December September 2014 2015 =N='000 =N='000 17,925 10,921 29,716 8,420 (11,029) 55,953 -
COMPANY 2014 =N='000
December 2014 =N='000
-
1,830
-
1,830
6 Trade receivables Insurance receivables Impairment on insurance receivables
731,475 (617,231) 114,244
724,788 (611,694) 113,094
882,211 (690,732) 191,479
-
-
-
-
387,396 2,662,502 4,245,573 (4,666) 7,290,805
(66,623) 3,633,683 6,696,771 (4,666) 10,259,165
609,797 4,861,584 2,294,021 (4,666) 7,760,736
-
-
-
-
-
-
-
-
7 Reinsurance assets Claims recoverable Reinsurer's share of outstanding claims Reinsurance Assets-(Deferred Reinsurance outward) Reinsurer's share of life insurance funds 8 Deferred acquisition costs At 1 January Movement during the year At end of the period
556,955 (15,722) 541,233
771,559 771,559
372,021 184,934 556,955
4
9 Other receivables and prepayments Interest Receivable Management Fee Receivable Deposit for assets Deposit for shares Due from related parties Other debit balances Prepayment Impairment on other receivables
92,534 2,350 1,421,574 87,193 1,603,651 (93,117) 1,510,534
CUSTODIAN AND ALLIED PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Continued 10 Investment in subsidiaries
14,520 3,526 (110) 1,063,898 85,512 1,167,346 (164,292) 1,003,054
GROUP 2015 =N='000
Custodian and Allied Insurance Limited Custodian Life Assurance Limited Crusader Sterling Pensions Limited (Note 11i) Custodian Trustees Limited At the end of the year
-
2014 =N='000
217,191 361,210 457,123 1,210,657 (93,119) 1,117,538
92,534 611 12,569 14,577 120,291 (7,965) 112,326
At December 2014 =N='000
2015 =N='000
2014 =N='000
3,584,607 1,184,717 1,139,460 300,885 6,209,669
3,584,607 1,184,717 1,139,460 40,885 5,949,669
18,019 157,114
-
-
13,825 (2,582) 36,182 11,795 59,220 59,220
74,648 29,008 8,431 112,087 (7,965) 104,122
At December 2014 =N='000
COMPANY
-
3,584,607 1,184,717 1,139,460 300,885 6,209,669
Custodian and Allied Plc is the ultimate holding company with significant equity interests in the subsidiary companies as follows: Place of Incorporation / Activity Subsidiary Equity Interest Segment Custodian and Allied Insurance Limited 100% Property / Casualty Insurance Nigeria Custodian Life Assurance Limited 100% Life Insurance Nigeria CrusaderSterling Pension Limited 76.55% Pension Asset Management Nigeria Custodian Trustees Limited 100% Trusteeship / company Secretarial Services Nigeria The company along with its subsidiaries make up the Custodian Group. Significant Restrictions The Group does not have any significant restrictions on its ability to access or use its assets and settle liabilities that exist within the group Non Controlling interest in subsidiaries The Group does not have any subsidiary that has material non-controlling interest. September 2015 11 Investment in associate Investment in Ordinary shares of Leadway Pensure Limited
i.
Dec 2014
-
409,891 409,891
September 2015
668,166 668,166
-
Dec 2014 409,891 409,891
409,891 409,891
In consonance with the group's commitment to the highest standard of good corporate governance and to avoid conflict of interest with its majority ownership of CrusaderSterling Pensions Limited, it sold its 24.44% (2014: 24.44%) interest in the ordinary share capital of Leadway Pensure Limited which is also involved in the administration and management of Pension Fund Assets. The gain realized in the disposal of the shares of Leadway Pensure Limited, net of related transaction cost, has been included in the profit and loss account for the year.
12 Investment properties At 1 January Additions Fair value gains/loss Reclassifications (Note 14) Disposals during the year Adjustments At 31 December
7,350,811 97,784 (398,796) (35,000) 7,014,799
6,508,896
6,508,896
6,309,466 229,425 835,920 (24,000) 7,350,811
3,515,000 96,365 (398,796) 3,212,569
3,057,250 3,057,250
3,055,000 7,250 452,750
3,515,000
CUSTODIAN AND ALLIED PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Continued 12 Investment properties - continued i. Investment properties are stated at fair value, which has been determined based on valuations performed by Barin Epega & Company and Bolu,Tokun & Company as at 31 December 2014. Barin Epega & Company and Bolu Tokun & Company are industry specialists in valuing these types of investment properties. They are registered with the Financial Reporting Council of Nigeria (FRC\2012\NIESV\0000000597 and FRC\2013\NIESV\00000001425, respectively). The fair value was determined based on the capitalization of net rental income method, where the market rentals of all lettable units of the properties are assessed by reference to the rentals achieved in the lettable units as well as other lettings of similar properties in the neighbourhood. This is also supported by market evidence and represents the amount at which the assets could be exchanged between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arm’s length transaction at the date of valuation, in accordance with the standards issued by the International Valuation Standards Committee. Valuations are performed on an annual basis and the fair value gains and losses are reported in income statement. However, pending the formal annual valuation that will be carried out at year end, management has recognized impairment to some investment properties following their reduced rental earning capacity and current sluggishness in the economy which are expected to affect the year end valuation.
There are no restrictions on the realisability of investment property or the remittance of income and proceeds of disposal. The Company has no contractual obligations to purchase investment property or for repairs or enhancement. 13 Intangible assets - Group
Goodwill =N='000 215,961 -
At 1 January, cost At 1 January, net Additions Impairment/amortization At Period End
5
Computer software =N='000 176,876 84,552 20,193 (22,449) 82,296
Total =N='000 392,837 84,552 20,193 (22,449) 82,296
CUSTODIAN AND ALLIED PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Continued 14 Property, plant and equipment - Group Cost/Valuation At 1 January Additions Reclassifications Disposals At 30 September 2015
Freehold property
Office Computer equipment equipment =N='000 =N='000 =N='000 2,098,154 269,814 292,156 3,001 18,264 13,816 (13,178) (438) 2,101,155 274,900 305,534
Accumulated depreciation At 1 January Charge for the year Reclassifications Disposals At 30September 2015
130,261 43,715 173,976
Furniture and fittings =N='000 222,523 11,066 233,589
Motor Vehicles =N='000 533,045 80,208 (35,776) 577,477
=N='000 3,415,692 126,355 (49,392) 3,492,655
Total
176,686 40,442 (12,171) 205,046
237,192 23,473 (438) 260,138
142,804 26,680 169,484
259,328 93,891 (31,096) 322,123
946,271 228,201 (43,705) 1,130,767
Net book value At 30 September 2015
1,927,179
69,854
45,396
64,105
255,354
2,361,888
At 31 December 2014
1,967,893
93,128
54,964
79,719
273,717
2,469,421
Office equipment =N='000 2,600 12 2,612
Computer equipment =N='000 684 199 883
Furniture and fittings =N='000 9,424 67 9,491
Motor Vehicles =N='000 41,300 41,300
=N='000 54,008 278 54,286
1,148 589 1,737
198 145 343
5,214 2,913 8,127
7,907 7,744 15,651
14,467 11,391 25,861
At 30 September 2015
875
540
1,364
25,649
28,425
At 31 December 2014
1,452
486
4,210
33,393
39,541
COMPANY September 2015 2014 =N='000 =N='000
December 2014 =N='000
CUSTODIAN AND ALLIED PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Continued 14 Property, plant and equipment - Company Cost/Valuation At 1 January 2015 Additions Disposals / Retirement At 30 September 2015 Accumulated depreciation At 1 January 2015 Charge for the year Disposals / Retirement At 30 September 2015
Total
Net book value
September
GROUP
15 Statutory deposits
2015 =N='000
2014 =N='000
December 2014 =N='000
Statutory deposit
850,000
850,000
850,000
-
-
Statutory deposit represents the amount deposited with the Central Bank of Nigeria in accordance with section 9(1) and section 10(3) of Insurance Act 2003. This is restricted cash as management does not have access to the balances in its day to day activities. Statutory deposits are measured at cost and attract interest rate at a rate determined by the Central Bank of Nigeria.
CUSTODIAN AND ALLIED PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Continued 16 Insurance contract liabilities
Outstanding claims Provision for unearned premiums Life fund
GROUP
COMPANY
2015 =N='000
2014 =N='000
2014 =N='000
2015 =N='000
2014 =N='000
15,281,662 2,789,694 18,071,356
17,132,911 790,704 17,923,615
13,264,388 2,542,395 15,806,783
-
-
3,163,261 477,554 3,640,815
3,017,629 71,014 3,088,643
2,496,993 533,339 3,030,332
-
-
857,782
2,097,386
1,017,239 275,903 107,990 307,949
857,782
2,097,386
1,709,081
-
-
1,423 321,067 110,501 19,431 211,203 12,594 383,954 317,742 1,359,444 2,737,359
3,780 194,474 62,845 9,068 175,223 21,324 284,964 39,361 1,043,514 1,834,553
1,424 103,551 240,004 310,524 244,621 524,240 57,240 1,481,604
2014 =N='000
17 Investment contract liabilities Welfare Annuity 18 Trade payables Reinsurance and Co-insurance Claims Welfare Scheme Due to Brokers and Agents Premium received in advance
19 Other payables Staff pension Non Trade payable Statutory payables Information Technology development levy Provision and Accruals Coinsurers' Claims Tenants' Security Deposit Due to related party Unclaimed Dividend Unearned income Sundry creditors
6
1,423 101,096 21,070 12,594 383,954 3,000 71,347 594,484
1,622 60,418
21,324 284,964 39,361 51,721 459,410
1,424 69,794 22,008 5,900 244,621 54,071 36,168 433,986
20 Taxation Per profit and loss account: Income tax based on profit for the period Education and ITDL tax for the period Underprovision in prior year Capital gains tax
1,196,896 1,196,896 1,196,896
Deferred taxation Tax charge to profit and loss CUSTODIAN AND ALLIED PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Continued 20 Taxation - continued Current income tax Per Balance Sheet: At 1 January Arising on Business Combination Based on profit for the period Payments during the period At the end of the period
GROUP September 2015 =N='000 1,109,775 1,196,896 (735,739) 1,570,932
661,978 661,978 661,978
2014 =N='000 1,225,233 661,978 (880,192) 1,007,019
767,405 16,813 1,984 786,202 273,841 1,060,043
December
2014 =N='000
1,207,501 786,202 (895,256) 1,098,447
454,315 -
30,000
454,315 454,315
30,000
-
64,067 647
30,000
64,714 268,272 332,986
COMPANY September 2015 2014 =N='000 =N='000
December 2014 =N='000
87,869
89,315
89,315
454,315 (170,588) 371,596
30,000 (66,160) 53,155
64,714 (66,160) 87,869
The charge for taxation has been computed in accordance with the provisions of the Companies Income Tax Act CAP C21 LFN 2004 (as amende). The charge for education tax is based on the provisions of the Education Tax Act CAP E4 LFN 2004. Minimum tax requirement was used for the Company for the year as the tax computed on the assessable profit is lower than the alternative minimum tax. GROUP September 2015 2014 =N='000 =N='000
21 Deferred tax liabilities Losses available for offsetting against future taxable income Fair value gains on investment properties Accelerated depreciation for tax purposes Tax credit on capital allowance
(489,977) 1,003,828 141,755 (107,344) 548,262
(83,832) 207,942 417,730 (236,863) 304,977
December
2014 =N='000
COMPANY September 2015 2014 =N='000 =N='000
December 2014
(489,977) 1,003,828 172,311 (107,344) 578,818
(422,439) 791,569 6,486 (107,344) 268,272
-
(422,439) 791,569 6,486 (107,344) 268,272
304,978 273,841 578,819
268,272 268,272
-
268,272 268,272
Reconciliation of deferred tax liability is as shown below: At 1 January Arising on acquisition Amounts recorded in the income statement At the end of the period
578,819 (30,555) 548,264
22 Interest-bearing loans and borrowings Borrowings
2,462,760
1,974,259
2,125,363
-
-
-
On March 20 2012, Custodian and Allied Insurance Limited issued a subordinated debt of US$ 12.5 million to International Finance Corporation (IFC). The loan is unsecured and interest is payable at the London interbank offered rate plus a margin of 4.5% per annum.
The conversion period commences 12 months after the date of first disbursement .During the conversion period, IFC shall have the right to convert all or a portion of the outstanding principal amount of the loan(in Naira equivalent as determined by IFC based on the Naira/Dollar exchange rate published by the CBN) into such number of shares in the capital of the borrower which will give IFC no more than 10% of the issued share capital of the borrower equal to the principal amount of the loan being converted, divided by the conversion price. IFC may exercise its conversion rights by delivering notice specifying whether the entire loan or a portion of it is to be converted and the date on which the shares are to be issued. IFC is entitled to the shares if IFC delivers the notice of conversion during the conversion period and can exercise the conversion 3 times during the conversion period. IFC shall receive in respect of each share issued to it; the amount of such dividend as exceeds the amount on interest previously received by IFC during such financial year in respect of principal amount of the loan converted into such shares. Shares issued to IFC upon any exercise of the conversion right shall be freely transferrable and shall in any respects rank pari-passu with all other shares outstanding on the relevant conversion date.
The shares do not have any dilutive factors as at the reporting date as it is not yet within the conversion period.
The conversion price is N3.50 per share plus 5% premium for each year of the conversion period. The exact conversion price over the conversion period is as follows: Year Price 2013 3.675 2014 3.85 2015 4.025 The principal amount of US$12.5 million is due for repayment from March 2016. The outstanding balance on the IFC US$ denominated loan was valued at the Naira/Dollar exchange rate published by CBN as at the reporting date.
CUSTODIAN AND ALLIED PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Continued 23 Issued share capital and reserves Authorised 7,000,000,000 Ordinary shares of 50k each Issued: 5,881,866,000 Ordinary shares of 50k each Movement during the year is as shown below: At 1 January Additional Shares Issued During the year At 31 December
GROUP September 2015 2014 =N='000 =N='000
At December 2014
COMPANY September 2015 2014 =N='000 =N='000
At December 2014
3,500,000
3,500,000
3,500,000
3,500,000
3,500,000
3,500,000
2,940,933
2,940,933
2,940,933
2,940,933
2,940,933
2,940,933
2,940,933 2,940,933
2,940,933 2,940,933
2,940,933
2,940,933 2,940,933
2,940,933 2,940,933
2,940,933 2,940,933
6,405,632 6,405,632
6,405,632 6,405,632
6,405,632
6,405,632 6,725 6,412,357
6,405,632 6,405,632
6,405,632 6,405,632
2,940,933
24 Share premium At 1 January Increase during the year Net Movement during the year on combination At 31 December
6,405,632
25 Reserves The nature and purpose of the reserves in equity are as follows: Retained earnings Retained earnings comprise the undistributed profits from previous years, which have not been reclassified to the other reserves noted below. Contingency reserve The statutory contingency reserve has been computed in accordance with Section 21 (1) of the Insurance Act, Cap I17 LFN 2004. Other components of equity This reserve contains the equity components of the issued unsecured convertibledebenture stock. The liability components are reflected in financial liabilities. Available-for-sale The fair value reserve shows the effects from the fair value measurement of financial instruments of the category available-for-sale after deduction of deferred taxes. Any gains or losses are not recognised in the statement of comprehensive income until the asset has been sold or impaired. Treasury Shares The 41,361,830 treasury shares previously held for future benefit of the employees were disposed of during the year and surplus arising from the disposal has been added to the share premium balance. Non Controlling Interest Custodian and Allied Plc has a controlling interest of 76.55% (2014: 76.55%) in CrusaderSterling Pensions Limited, CSP, which gives rise to a Non -controlling interest of 23.45% in the entity. The balance represents the amount attributable to the Non-controlling shareholders of CSP.
4
CUSTODIAN AND ALLIED PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Continued 26 Gross Revenue Gross Premium Income Investment Income Fees and Commission Other Operating Income
GROUP 2015 =N='000
2014 =N='000
15,576,270 2,409,765 1,866,523 513,949 20,366,507
14,557,993 1,746,125 1,814,406 368,898 18,487,422
7,076,881 1,781,264 3,580,524 12,438,669
7,312,850 1,598,031 2,646,582 11,557,463
COMPANY 2015 2014 =N='000 =N='000 1,797,330 10,815 1,808,145
1,460,190 63,621 1,523,811
27 Operating Expenses Reinsurance Expenses Underwriting Expenses Net Claims 28 Net fair value gains/(losses) Changes in Fair Value of Quoted Investments Fair value gains/(loss) on investment
(97,553) (398,796) (496,349)
-
-
-
(4,821) (398,796) (403,617)
-
29 Realized Gains (Listed Equities and Others) On property and equipment: Profit on disposal of property and equipment Profit on disposal of investment Less: Share of Prior years' Associate's Profit included in Retained Earnings Available for sale: Realised gains on equity securities
1,440,660
-
Staff cost Auditors’ remuneration Amortisation of intangible assets Depreciation on property, plant and equipment Impairment loss on insurance receivable Impairment losses on loans and receivables Marketing and administration expenses Other expenses
-
3 1,440,663
-
(258,275) 3 1,182,388
-
0
CUSTODIAN AND ALLIED PLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Continued 30 Management expenses
1,440,660
GROUP 2015 =N='000
2014 =N='000
COMPANY 2015 2014 =N='000 =N='000
1,406,710 2,500 17,762 228,201 337,471 1,555,124 3,547,768
510,910 124,897 115,465 2,283,983 3,035,255
72,919 11,391 114,965 199,275
58,108 9,105 96,599 163,812
94,758
74,766
-
-
50,916
266,950
-
-
50,916
266,950
-
-
-
-
-
-
31 Finance costs
Interest on convertible loan 32 Net gain/(losses) on available-for-sale assets Unrealised gain/(loss) on available-for-sale financial instruments during the year, net of tax
Other comprehensive income/(loss) for the year, net of tax
-
-
50,916
266,950
33 Earnings/(loss) per share Basic earnings/(losses) per share amount is calculated by dividing the net profit or loss for the year attributable to ordinary shareholders by the number of ordinary shares outstanding at the reporting date. The following reflects the earnings/(losses) and share data used in the basic earnings/(losses) per share computations: GROUP 2015
2014
COMPANY 2015
2014
Net profit/(loss) attributable to ordinary shareholders (=N='000)
3,652,084
3,052,694
2,191,601
1,331,897
Number of ordinary shares in issue as at year end ('000)
5,881,866
5,881,866
5,881,866
5,881,866
Basic earnings/(losses) per ordinary share (kobo)
62
52
37
23
Diluted earnings/(losses) per ordinary share (kobo)
62
52
37
23
There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of these financial statements.
8
