NGX records operating deficit, negative cashflow amid COVID headwinds

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The Nigerian Exchange Group Plc recorded an operating deficit of N93.97m and net operating cashflow of -N1.37bn in the 2020 financial year amid the impact of the COVID-19 pandemic.
According to its annual report for 2020, the NGX witnessed an operating deficit as compared to a surplus of N768.23m in 2019. The company claimed a N2.00bn profit from its equity accounted investees as part of income raising its operating income before tax to N1.84bn, 18.56 per cent lower than 2019’s record.
Otunba Ademola Ogunbajo, the NGX Group’s Chairman in his address at the NGX’s annual general meeting stated that 2020 was a stormy financial year as their listing fees income declined by 62.66 per cent due to uncertainty of prospective issuers in the wake of the pandemic.
“Following management’s cost containment efforts, total expenses declined by 12.86 per cent year- on-year without affecting the exchange’s high operating standards and service delivery.”
The meeting is the first AGM of the Group as a demutualised, shareholder-owned, and for-profit entity. Its shareholders approved the Group’s proposals to introduce equity-based incentives to employees’ remuneration, including an Employee Share Ownership Plan and a Long-Term Incentive Plan, aligning the interests of internal stakeholders with those of shareholders in long term value creation.
The Chief Executive Officer of NGX Group, Mr Oscar Onyema highlighted at the event that with the pandemic, the group faced a myriad of challenges including hyperinflation, forex scarcity, a weak global economy, historically low crude oil prices, and elevated geopolitical risks.
He said, “It is It is gratifying to note that despite these challenges, NGX Group demonstrated a year of resilience as the NGX All Share Index emerged the best-performing index in the world, delivering over 50 per cent growth in the year under review. The equity market capitalization increased by 62.42 per cent to close at N21.06tn.
“The Group closed the year with sound liquidity and strong balance sheet position as total assets stood at N35.11bn, with N10.77bn (accounting for 30.68 per cent) held in liquid assets. Also, net assets increased by 10.03 per cent to N31.28bn from N28.43bn in 2019.”

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