During its 54th annual general meeting in Lagos, Royal Exchange Plc, a prominent underwriting firm, sought to reassure shareholders amidst the myriad environmental challenges encountered in the preceding year. Themed “Overcoming Challenges, Generating Growth,” the meeting underscored the company’s commitment to bolstering performance and enhancing returns on investment.
Kenny Odogwu, the Group Chairman, addressing attendees, acknowledged 2022 as one of the most daunting years in modern history, marked by economic and geopolitical uncertainties of a devastating nature. Despite these challenges, Odogwu outlined the company’s proactive approach, detailing strategic measures to maintain relevance in both domestic and global economic landscapes.
“We are deploying strategies that will make us responsive and adaptive to the economic challenges and meet the shareholders’ yearning and expectations,” emphasized Odogwu, signaling the company’s resilience in the face of adversity.
A key aspect of Royal Exchange’s strategy involves a meticulous evaluation of its subsidiaries, with a focus on enhancing productivity. Odogwu emphasized the intention to exit from subsidiaries that fail to contribute adequately to the group’s overall growth objectives.
Moreover, the chairman highlighted the successful recapitalization of three subsidiaries through investments from strategic partners, emphasizing the company’s commitment to fostering growth. Simultaneously, the company strategically divested from a long-standing loss-making subsidiary, retaining reversionary interest with the option to reinvest within a year, contingent upon fundamental changes.
Financially, the underwriting firm demonstrated commendable performance. Net income witnessed a notable 16.5% surge, escalating from N292 million in 2021 to N340 million in 2022. However, total expenses experienced a significant uptick, soaring by 76.5% from N277 million in 2021 to N488 million in 2022, primarily attributed to the restatement of accounts in 2021 for IFRS compliance.
Despite the rise in total expenses, the group’s loss after tax witnessed a substantial reduction, plummeting by 83.2% from N1.7 billion in 2021 to N288 million in 2022. This impressive turnaround underscores Royal Exchange’s resilience and strategic financial management amid the challenging operating environment.
Conclusion: Royal ExchangeÂ
In essence, Royal Exchange Plc’s comprehensive approach, encompassing strategic evaluations, recapitalization, divestitures, and financial prudence, positions the company for sustained growth and resilience in the ever-evolving economic landscape.
