CUSTODIAN INVESTMENT : QUARTER 4 - FINANCIAL STATEMENT FOR 2021

CONSOLIDATED FINANCIAL REPORTS

FOR THE FOURTH QUARTER ENDED

31ST DECEMBER 2021

							Custodian Investment Plc
						Financial Reports (Unaudited)
							31 December 2021
Consolidated and separate statement of financial position
As at 31 December 2021
				Group	Group	Company	Company
	In thousands of naira	Note	31-Dec-21	31-Dec-20	31-Dec-21	31-Dec-20
				Unaudited	Audited	Unaudited	Audited
	Assets
	Cash and cash equivalents	5		17,663,677	13,743,138	601,326	1,654,286
	Trade receivables	7		431,107	417,905	-	-
	Financial assets:	6		114,841,297	112,826,983	5,536,333	2,567,836
	- Fair value through profit or loss			68,536,913	71,957,967	1,101,825	1,279,837
	- Fair value through OCI			1,391,534	1,615,682	391,000	-
	- Debt securities at amortised cost			44,912,850	39,253,334	4,043,508	1,287,999
	Reinsurance assets	8		8,252,161	7,877,994	-	-
	Inventories	9		6,084,508	4,270,906	-	-
	Deferred acquisition costs	10		784,693	662,830	-	-
	Other receivables and prepayments	11		5,441,260	7,045,422	1,606,058	2,468,286
	Right-of-use-assets	20		52,637	80,275	-	-
	Investment in subsidiaries	12		-	-	15,373,012	15,254,287
	Investments in joint ventures	14		130,393	130,393	-	-
	Investment in associates	13		4,833,266	4,730,728	525,364	525,364
	Investment properties	15		11,762,855	11,063,550	7,081,066	4,636,980
	Assets of disposal group classified as
	held for sale	16		8,171,721	8,140,686	-	-
	Property, plant and equipment	18		4,696,668	4,445,995	94,548	56,776
	Intangible assets	17		172,486	159,108	25,132	-
	Statutory deposits	19		1,174,085	560,000	-	-
	Total assets			184,492,814	176,155,912	30,842,839	27,163,815
	Liabilities and equity
	Liabilities
	Insurance contract liabilities	22		86,036,840	89,542,143	-	-
	Investment contract liabilities	23		7,616,195	6,072,622	-	-
	Interest bearing Loans and Borrowings	24		2,668,944	5,422,500
	Trade payables	25		9,535,289	4,627,571	-	-
	Liabilities of disposal group classified as
	held for sale/distribution to owners	26		1,006,955	946,620	-	-
	Other payables	27		9,717,390	8,685,008	1,309,083	1,035,072
	Current income tax payable	28		2,409,331	1,694,459	654,741	563,773
	Deferred tax liabilities	29		2,117,528	1,658,606	607,239	367,398
	Total liabilities			121,108,472	118,649,529	2,571,063	1,966,243
	Equity
	Issued share capital	30		2,940,933	2,940,933	2,940,933	2,940,933
	Share premium	31		6,412,357	6,412,357	6,412,357	6,412,357
	Retained earnings	32		30,821,323	25,379,761	18,918,486	15,844,282
	Contingency reserve	32		12,968,452	11,679,092	-	-
	Fair value reserves	32		504,195	538,075	-	-
	Revaluation reserve	32		685,081	698,693	-	-
	Equity attributable to owners of the parent	54,332,341	47,648,911	28,271,776	25,197,572
	Non-controlling interests			9,052,001	9,857,472	-	-
	Total equity			63,384,342	57,506,383	28,271,776	25,197,572
	Total equity and liabilities			184,492,814	176,155,912	30,842,839	27,163,815

The accounts were approved by the Board of directors on 28 January 2021 and signed on its behalf by:

Dr. (Mrs.) Omobola Johnson		Wole Oshin		Ademola Ajuwon
Chairman		Managing Director	Chief Financial Officer
FRC/2018/IODN/00000018366	FRC/2013/CIIN/00000003054	FRC/2013/ICAN/00000002068

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Custodian Investment Plc

Financial Reports (Unaudited)

31 December 2021

Consolidated and separate statements of profit or loss and other comprehensive income

For the period ended 31 December 2021

		Group	Group	Group	Group	Company	Company	Company	Company
		Q4 ended	Q4 ended	Year to date	Year to date	Q4 ended	Q4 ended	Year to date	Year to date
In thousands of naira	Note	31-Dec-21	31-Dec-20	31-Dec-21	31-Dec-2031-Dec-2131-Dec-20	31-Dec-21	31-Dec-20
		Unaudited	Unaudited	Unaudited	Audited	Unaudited	Unaudited	Unaudited	Audited
Gross Revenue		20,322,075	17,533,530	85,524,970	75,062,202	463,674	3,669,742	6,008,478	7,398,301
Interest income	34	3,235,386	2,494,568	11,605,926	10,186,605	50,810	45,472	286,196	297,114
Operating and Investment Income	33	17,086,689	15,038,962	73,919,044	64,875,597	412,864	3,624,270	5,722,282	7,101,187
Operating Expenses	35	(16,165,430)	(11,444,509)	(52,158,102)	(44,768,007)	-	-	-	-
Change in Provision for Outstanding Claims and
Life Fund Estimate	35(iii)	742,329	(10,950,195)	4,827,955	(32,798,340)	-	-	-	-
Net income		4,898,974	(4,861,174)	38,194,823	(2,504,145)	463,674	3,669,742	6,008,478	7,398,301
Net fair value gains/(losses)	36	4,004,680	5,850,175	(17,923,567)	15,800,190	2,547,855	(80,524)	2,435,695	19,752
Net realised gains	37	(381,631)	6,024,540	2,760,215	6,215,803	-	1,596,035	490	1,596,035
Impairment allowance/reversal	39	(283,239)	417,245	(734,371)	253,126	697,925	6,738	22,925	6,738
Finance costs	40	(73,234)	(270,353)	(479,526)	(270,353)	-	-	-	-
Management expenses	38	(3,346,682)	(2,008,671)	(10,154,086)	(7,023,275)	(333,947)	(258,349)	(1,347,123)	(816,428)
Bargain purchase		-	1,209,925	-	1,209,925			-	-
Share of result of associates	13	340,073	4,776	340,073	4,776			-	-
Profit before taxation		5,158,941	6,366,463	12,003,561	13,686,047	3,375,507	4,933,642	7,120,465	8,204,398
Income tax expenses	28	(817,759)	387,064	(2,602,275)	(896,935)	(300,254)	91,996	(811,237)	(7,004)
Profit from continuing operation		4,341,182	6,753,527	9,401,286	12,789,112	3,075,253	5,025,638	6,309,228	8,197,394
Discontinued operations
Loss from discontinued operation	42	-	(101,617)	(43,365)	(101,617)	-	-	-	-
Profit for the period		4,341,182	6,651,910	9,357,921	12,687,495	3,075,253	5,025,638	6,309,228	8,197,394
Other comprehensive income (OCI):
Items that will not be reclassified to profit or loss
Share of gains on equity instruments at FVTOCI of
associate	13	(9,030)	2,079	(9,030)	2,079			-	-
Net gain/(loss) on equity instrument at FVOCI	41	(82,309)	248,981	(107,103)	320,181	-	-	-	-
Other comprehensive income for the period net
of tax		(91,339)	251,060	(116,133)	322,260			-	-
Total comprehensive income for the period		4,249,843	6,902,970	9,241,789	13,009,755	3,075,253	5,025,638	6,309,228	8,197,394
Profit for the period attributable to:
- Owners of the parent		4,587,706	5,705,058	9,965,946	11,416,555	3,075,253	5,025,638	6,309,228	8,197,394
- Non-controlling interests		(246,524)	1,048,469	(608,025)	1,270,940	-	-	-	-
		4,341,182	6,753,527	9,357,921	12,687,495	3,075,253	5,025,638	6,309,228	8,197,394
Total comprehensive income attributable to:
- Owners of the parent		4,571,546	5,822,219	9,869,962	11,706,533	3,075,253	5,025,638	6,309,228	8,197,394
- Non-controlling interests		(321,702)	1,080,751	(628,173)	1,303,222			-	-
		4,249,843	6,902,970	9,241,789	13,009,755	3,075,253	5,025,638	6,309,228	8,197,394
Earnings/(loss) per share:
From continuing operations
Basic/diluted earnings per share (kobo)	43	78	97	170	196	56	139	107	139
From continuing and discontinued operations
Basic/diluted earnings per share (kobo)	43	78	95	169	194	56	139	107	139

3

Custodian Investment Plc

Consolidated and separate statement of changes in equity												Financial Reports (Unaudited)
											31 December 2021
For the period ended 31 December 2021
	Group				Attributable to owners of the Parent
		Issued share		Share	Retained				Revaluation	Fair Value				Non-controlling
	In thousands of naira	capital		premium	earnings		Contingency	reserve	Reserve	Reserve		Total		interests		Total equity
	At 1 January 2021	2,940,933	6,412,357	25,379,761	11,679,092	698,693	538,075	47,648,911	9,857,472	57,506,383
	Profit for the period	-	-	9,965,946			-	-	-	9,965,946	(608,025)	9,357,921
	Share of profit	-	-	-			-	-	(9,030)	(9,030)	-	(9,030)
	Other comprehensive income		-	-			-	(13,612)	(24,850)	(38,462)	(68,641)	(107,103)
	Acquisition of additional UPDC shares through
	Mandatory Takeover	-	-	-			-	-	-	-	(18,725)	(18,725)
	Transfer between reserves	-	-	(1,289,360)	1,289,360	-	-	-	-	-
		2,940,933	6,412,357	34,056,348	12,968,452	685,081	504,195	57,567,366	9,162,081	66,729,447
	Dividend Paid	-	-	(3,235,025)			-	-	-	(3,235,025)	(110,079)	(3,345,104)
	At 31 December 2021	2,940,933	6,412,357	30,821,323	12,968,452	685,081	504,195	54,332,341	9,052,001	63,384,342
	At 1 January 2020	2,940,933	6,412,357	23,132,865	10,315,451	550,273	364,235	43,716,114	1,023,196	44,739,310
	Profit for the period	-	-	11,416,555			-		-	11,416,555	1,270,940	12,687,495
	Other comprehensive income				-			-	148,420		148,420			148,420
	Share of profit	-	-	-			-	-	2,079	2,079			2,079
	Aarising on acquisition of UPDC				(5,159,179)					171,761	(4,987,418)	7,737,718	2,750,300
	Post Acquisition NCI	-									-	23,762	23,762
	Transfer between reserves	-	-	(1,363,641)	1,363,641			-			-
		2,940,933	6,412,357	28,026,600	11,679,092	698,693	538,075	50,295,750	10,055,616	60,351,366
	Dividend Paid				(2,646,839)			-			(2,646,839)	(198,143)	(2,844,982)
	At 31 December 2020	2,940,933		6,412,357	25,379,761		11,679,092	698,693	538,075		47,648,911		9,857,473		57,506,384
	Company				Attributable to owners of the Company
		Issued share		Share	Retained				Revaluation	Fair value
	In thousands of naira	capital		premium	earnings		Contingency	reserve	Reserve	reserve		Total
	At 1 January 2021	2,940,933	6,412,357	15,844,282			-	-	-	25,197,572
	Profit for the period	-	-	6,309,228			-	-	-	6,309,228
	Dividend Paid	-	-	(3,235,025)			-	-	-	(3,235,025)
	Other comprehensive income	-	-				-	-		-
	At 31 December 2021	2,940,933	6,412,357	18,918,486			-	-	-	28,271,776
	At 1 January 2020	2,940,933	6,412,357	10,293,727			-	-	-	19,647,017
		2,940,933	6,412,357	10,293,727			-	-	-	19,647,017
	Profit or loss for the period	-	-	8,197,394			-	-	-	8,197,394
	Dividend Paid				(2,646,839)						(2,646,839)
	At 31 December 2020	2,940,933	6,412,357	15,844,282			-	-	-	25,197,572

4

Custodian Investment Plc

Financial Reports (Unaudited)

31 December 2021

Consolidated and separate statement of cash flows

For the period ended 31 December 2021

			Group	Group	Company	Company
In thousands of naira	Note		31-Dec-21	31-Dec-20	31-Dec-21	31-Dec-20
Cash flows from operating activities
Profit/(loss) before taxation			12,003,561	13,686,047	7,120,465	8,197,394
Adjustments for non-cash items:
- Fair value (gain)/loss		36	22,842,788	-	8,391	(19,752)
- Write back of excess tax provision			(34,061)	-	(34,061)	-
- Depreciation		18	434,997	578,317	44,660	33,720
- Deprecition on right-of-use assets		20	58,783	-	-	-
- Impairment charge		39	734,371	(253,126)	(22,925)	(6,738)
- Amortisation of intangible assets and deferred expenses		17	57,344	371,705	-	-
- Profit on disposal of property, plant and equipment			(10,022)	15,513	-	-
- Profit on disposal of investment property			(284,826)	-	-	-
- (Gain)/loss on disposal equities & other investment		37	(2,677,413)	-	-	(1,487,580)
- Fair value gains on investment properties			(2,461,731)	169,642	(2,444,086)
- Exchange rate differential			2,245,444	(547,378)	(490)	(108,455)
- Share of result of associate		13	(340,073)	(4,776)	-	-
- Dividend income			(635,842)	-	(4,274,082)	(6,277,589)
- Interest income			(693,559)	-	(220,439)	(86,694)
- Income Tax Expense			-	-	-	7,004
- Investment income			(10,912,367)	-	(65,757)	(210,420)
- Net gain/(losses) on fair value through OCI assets			58,982	-	-	-
- Gain on bargain purchase			-	(1,209,925)		-
Changes in working capital:
(Increase)/Decrease in reinsurance assets			(374,167)	1,273,160	-	-
(Increase)/Decrease in other receivables and prepayment		1,604,162	(4,453,091)	862,228	799,870
Decrease in trade receivables			(13,202)	(283,241)	-	-
Increase/(Decrease) in deferred acquisition cost			(121,863)	4,910	-
Increase/ (Decrease) in insurance contract liabilities			(3,505,303)	30,470,068	-	-
Increase /(Decrease) in investment contract liabilities			1,543,573	2,087,277	-	-
Increase / (Decrease) in other liablilities			1,032,382	(1,304,445)	274,011	95,909
Increase / (Decrease) in lease liabilities			-	(744)
Increase / (Decrease) in trade payable			4,907,718	5,299,661	-	-
Increase / (Decrease) in inventories			1,813,602	(4,270,906)	-	-
Increase / (Decrease) in statutory deposit			(614,085)	-	-	-
Increase / (Decrease) in AFHS			-	946,620
Increase / (Decrease) in borrowings			(2,753,556)	5,422,500	-	-
Income tax paid			(986,999)	(1,159,354)	(446,367)	(12,545)
Net cash provided/(utilised) by operating activities			22,918,639	46,838,434	801,548	924,124
Cash flows from investing activities
Purchase of property, plant and equipment		18	(697,839)	(593,821)	(82,431)	(27,915)
Purchase of ROU asset		20	(36,528)	(76,997)	-	-
Proceeds on disposal of property, plant and equipment			22,191	169,642	-	-
Purchase of intangible			(70,722)	(308,059)	(25,132)	-
Net (Purchase)/redemption to investments (financial assets)		(24,823,549)	(31,607,580)	(3,123,584)	2,149,277
Purchase of investment in associate/subsidiary		12	(18,725)	(4,616,340)	(118,725)	(6,843,618)
Purchase of investment properties		15	(24,147)	(2,391,167)	-	-
Arising on acquisition of subsidiary less impact in Retained Earnings		-	(918,974)	-	-
NCI			-	8,834,276	-	-
Procced on disposal of AHFS			-	(8,140,686)	-	-
Dividend received			635,842	-	4,274,082	6,277,589
Investment income received			11,605,926	-	286,196	297,114
Net cash provided/(used) in investing activities			(13,407,552)	(39,649,706)	1,210,406	1,852,447
Cash flows from financing activities
Dividend Paid during the period			(3,345,104)	(2,844,982)	(3,235,025)	(2,646,839)
			(3,345,104)	(2,844,982)	(3,235,025)	(2,646,839)
Net increase/(decrease) in cash and cash equivalents			6,165,983	4,343,746	(1,223,071)	129,732
Cash and cash equivalents at begining of the year			13,743,138	9,362,870	1,654,286	1,524,554
Effect of change in exchange rate			(2,245,444)	36,522	170,111	-
Cash and cash equivalents at end of the period			17,663,677	13,743,138	601,326	1,654,286

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