United Capital to pay N4.2 bn dividend to shareholders

United Capital Plc will reward shareholders with a total dividend payout of N4.2 billion, translating to N0.70 per every ordinary share held for Full Year 2020, the investment banker said Thursday.

That is, however, subject to appropriate withholding tax and shareholders’ go-ahead to be obtained at the firm’s forthcoming annual general meeting, according to the resolution reached by its board of directors on Wednesday.

The corporate action is coming ahead of the company’s issuing of its audited accounts for the year ended, December 31, 2020.

“In line with the option chosen by the company to submit its audited accounts within sixty (60) days of the year-end, the audited accounts will be published on or before Monday, February 22, 2021,” United Capital said in a note co-signed by Chief Executive Office Peter Ashade and Company Secretary Leo Okafor, obtained by PREMIUM TIMES.

Shareholders whose names feature in the company’s register of members as of the close of business on March 5 will be in the frame for the dividend payout.

In October 2020, United Capital, formerly a subsidiary of United Bank for Africa, announced a 26 per cent leap in after-tax profit to N3.464 billion in the nine months to September 2020, following a N1.747 billion growth in revenue to N7.069 billion.

With  earnings per share currently standing at N2.62, its price-to-earnings ratio is 2.28.

Shares in United Capital closed in Lagos on Thursday at N5.98 per unit, down by 0.33 per cent.