VFD Group Plc has made a strong comeback in 2024, returning to profitability and nearly doubling its earnings, thanks to strategic investments and a capital raise.
The investment firm, known for its diverse holdings in financial services, tech, real estate, media, and energy, reported a 94% increase in gross earnings and closed the year with a profit of ₦8.7 billion—after recording a loss the previous year.
Its core income streams—returns from divestments, interest income, and dividends—saw sharp growth, supported by gains from logistics, hospitality, and real estate. A significant boost also came from foreign exchange gains and fair value increases in investment properties.
A key pillar of the Group’s growth was its ₦12.5 billion rights issue, which bolstered its capital base and strengthened its balance sheet.
The company used the funds to expand lending, real estate, and alternative investments, while also supporting its digital transformation strategy. Total equity rose by 80%, reducing its debt ratio and improving its financial resilience.
“Strategic investments and divestments drove a significant increase in earnings and profitability during the year,” said Group Managing Director, Nonso Okpala. “We reinforced our financial resilience and governance, all while embracing digital innovation.”
Total assets grew by over 30% to nearly ₦300 billion, driven by increased loans, receivables, and real estate assets. Meanwhile, operating costs rose—largely due to a ramp-up in staff strength and general administrative expenses aimed at supporting business growth. Despite this, the Group maintained strong margins and achieved a return on equity of 19%, a sharp rebound from negative territory last year.
This report was created with AI assistance and edited by a Pluboard editor for accuracy and clarity.
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