Goldlink, Nem Insurance out with first quarter results.
May 14th, 2008 Tunde Brown || tunde.brown@stockmarketnigeria.com
By Tunde Brown
Results for the quarter ended 31 march 2008 have kept pouring in as two (2) companies listed in the insurance sub-sector of the Nigerian Stock Exchange made public their first quarter results for three months ending 31st march 2008, on the floor of the Nigerian Stock Exchange last week. It would appear that the gains of the recapitalization exercise embarked upon in the industry about a year ago, has begun yielding desired results as even newly listed stocks have sustained share prices that have withstood the recent bearish run, maintaining several points above their price as at initial listing.
The results by Goldlink Insurance Plc show that the company’s turnover inched upwards by 80.60 per cent, growing from N199.19m in Q1 2007 to N359.74m in Q1 2008. The profit after tax equally edged upwards from N172.9m to N274.99m – a 59.04 per cent change in its fortunes. However, one fact worthy of note is the quality of this company’s profit which is stands at 76 per cent of turnover in the current period. While the current earning per share (EPS) is 3 kobo, the full year forecast is believed to be in the region of 15 kobo. Goldlink Insurance Plc’s share price has swung between N4.85k and N1.80k (initial listing price) this year so far.
Similarly, Nem Insurance Plc grew its turnover relatively by 64.18 percent, comparing the results as at Q1 in 2007 and 2008. The profit before tax also increased from N96.82m in Q1 2007 to N492.50m in Q1 2008, representing a whooping 408.67 per cent change in the fortunes of the company within the compared periods. The current earning per share stands at 10 kobo, while the full year earning per share has been tipped to stand at 30 kobo. As at the date of the release, the share price stood at N4.34.
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