Company Overview
AFRIPRUD, formerly UBA Registrars Limited,
was incorporated in March 2006. It was a spin-off from UBA Plc occasioned by
the directive of the Central Bank of Nigeria to banks to divest from
non-banking subsidiaries. The spin-off was approved by the shareholders on 13
December, 2012 and it was listed on the Nigerian Stock Exchange in January
2013. It provides share registration
services to private and public companies.
The
acquisition of UAC Registrars in 2013 is an asset for AFRIPRUD. UAC Registrars Limited (founded in 1978) is a former
wholly owned subsidiary of UAC Nigeria Plc.
International
Equity Capital controls 24.7% of its shareholding while Heirs Holdings Limited
has 12.8% stake in the company.
AFRIPRUD’s investment in technology
enables clients to have access to the company’s services
online. Its products include e-registrar solutions, e-dividend, e-offer,
and e-replacement.
Peter
Ashade is the Managing Director of AFRIPRUD
while Chief (Mrs.) Eniola Fadayomi is the company’s chairman.
Investment Thesis
Fee income is
growing despite the economic quagmire; it accounts for about 40% of revenue.
The company is generating considerable income from investment in treasury
bills, bonds and term deposits. Though its contribution declined in the year,
it poses less risk to the company. Interest on treasury bills form the bulk of
net investment income.
Investments
in technology and human capital have impacted revenue positively; AFRIPRUD has recorded a 12.2% CAGR in
revenue over the last three years. Improved investment capability has enabled
the company to grow net investment income by 51.9% in three years. Also, we
expect process automation to deliver some cost savings and efficiency going
forward.
We
believe if management does not relent, AFRIPRUD
stands to benefit from the opportunities in the registrar industry in the
country.
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