N12.50bn Rights Issue Bolster VFD Group’s Balance Sheet as ROE Improves

A successful rights issue of N12.5 billion contributed to a remarkable 90 percent growth in VFD Group’s shareholders’ fund, reaching approximately N61.98 billion.

“This substantial capital base, coupled with an improved leverage profile, positions us for sustained growth and ensures financial stability,” said the company in a statement glimpsed on the Nigerian exchange (NGX) Limited website.

A strong balance sheet with a healthy proportion of assets to liabilities indicates financial robustness, making the company an attractive investment.

The company’s diversified investments across financial services, fintech, asset management, real estate, logistics, capital markets, is pivotal to sustained earnings growth.

The Group recorded net investment income growth of 1321 percent to N21.71 billion, from N1.53 billion as at December 2023.

It is important to note that investment income which surged 107.85 percent to N71.70 billion was driven majorly by incomes from divestments, interest income from treasury activities, loans, advances and placements, and dividend income.

What’s more, other income spiked by 31.60 percent to N9.35 billion, thanks to N9.35 billion income from logistics and hospitality businesses, fair value gain on Investment property, and foreign exchange gains.

Net investment margin ratio, whose increase indicates a firm is efficient and profitable, rose to 30.50 percent in December 2024 from 4.46 percent as at December 2023.

The VFD Group returned to profit of N10.41 billion as at December 2024 from a loss of N750 million the previous year.

In a notice filed with the Nigerian Exchange Limited, VFD Group announced the divestment of its 57.26 per cent stake in Atiat Limited in a deal valued at over N7 billion.

“VFD Group, a leading proprietary investment company renowned for its strategic vision and robust portfolio management, today announced the divestment of its 57.26 per cent stake in Atiat Limited, a key subsidiary, in a deal valued at over N7 billion. This transaction marks an important milestone for both companies, underscoring VFD Group’s commitment to delivering superior value to its stakeholders while positioning Atiat for an exciting new chapter of growth and expansion,” the notice partly reads.

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