Q4 unaudited financial statement for the period ended 31 dec 2024

ROYAL EXCHANGE PLC RC: 6752

34/36 Oshodi Apapa Expressway

T. +234 9152213054; +234 9152213058

Charity Bus Stop

E. info@royalexchangeplc.com

Oshodi, Lagos

W. www.royalexchangeplc.com

Table of Contents

Corporate information

4

Share Dealing Policy

5

Free Float Report

9

Chairman's Statement

11

Report of Corporate Governance

14

Sustainability Report

18

Management's Report on Internal Control Over Financial Reporting

20

Management's Attestation on Internal Control Over Financial Reporting

21

Risk Management Statement

22

Board of Directors

26

Directors' Report

29

Statement of Directors' Responsibilities in Relation to the Financial Statements

34

Director's Attestation/Certification of Financial Statements

35

Report of the Audit Committee

36

Independent Auditor's Attestation

37

Independent Auditor's report

39

Result at a glance

44

Consolidated Statements of Financial Position

45

Consolidated Statement of Profit or Loss and Other Comprehensive Income

46

Statement of Changes in Equity

47

Consolidated Statements of Cashflows

48

Notes to the Consolidated financial statements

50 -107

Other National Disclosures

108

Value added statement

109

Five Year Financial summary

110

Board Listed:

Main Board

Year End:

December

Reporting Period:

Period Ended 31 December 2024

Share Price at end of reporting period

N0.63k (2022: N1.06K)

Shareholding Structure/Free Float Status

Issued Share Capital

8,266,698,940

100%

5,145,370,074

100%

Details of Substantial Shareholdings (5% and above)

[Name(s) of Shareholders]

Spennymoor Limited

2,129,405,249

25.76%

2,013,119,834

39.12%

Dantata Investment & Securities Co. Ltd

968,186,495

11.71%

912,536,581

17.74%

Kacio Global Links Limited

2,097,496,268

25.37%

1,303,807

0.03%

Far East Finance & Investment Limited.-Trading

453,067,252

5.48%

29,481,807

0.57%

Total Substantial Shareholdings

5,648,155,264

68.32%

2,956,442,029

57.46%

Details of Directors Shareholdings (direct and indirect), excluding directors' holding substantial interests

[Name(s) of Directors]

Mr. Kenny Ezenwani Odogwu (Indirect_Representing Spennymoor Li

-

0.00%

-

0.00%

Chief Anthony Ikemefuna Idigbe (SAN) (Indirect_Representing Punuk

103,510,716

1.25%

1,350,276

0.03%

Alhaji Ahmed Rufa'i Mohammed (Direct)

-

0.00%

-

0.00%

Mr. Adeyinka Ojora (Direct)

7,374,739

0.09%

100,000

0.00%

Mr. Adeyinka Ojora (Indirect_ Representing Phoenix Holdings Limite

340,965,679

4.12%

183,529,858

3.57%

Mr. Hewett Benson (Direct)

-

0.00%

-

0.00%

Total Directors' Shareholdings

451,851,134

5.47%

184,980,134

3.60%

Details of Other Influential shareholdings, if any (E.g. Government,

Promoters)

[Name(s) of Entities/ Government]

Gombe State Government

5,637,604

0.07%

5,637,604

0.11%

Total of Other Influential Shareholdings

5,637,604

0.07%

5,637,604

0.11%

Free Float in Unit and Percentage

2,161,054,938

26.14%

1,998,310,307

38.84%

Free Float in Value

₦2,009,781,092.34

₦1,258,935,493.41

ROYAL EXCHANGE PLC

RESULTS AT A GLANCE

FOR YEAR ENDED 31 DECEMBER 2024

31-Dec-24

31-Dec-23

%

EARNED INCOME

562,978

767,400

(27)

(LOSS)/PROFIT BEFORE TAX

123,433

(201,988)

161

LOSS)/PROFIT AFTER TAX

122,295

(206,218)

159

SHARE CAPITAL

4,133,349

2,572,685

(61)

SHAREHOLDERS' FUND

5,324,071

3,791,589

40

PROFIT/(LOSS) PER SHARE (NAIRA) - BASIC

2

(4)

159

STOCK EXCHANGE QUOTATION (NAIRA)

0.63

0.63

-

Audited

Audited

Audited

Audited

Group

Group

Company

Company

In thousands of Naira

Note

31-Dec-24

31-Dec-23

31-Dec-24

31-Dec-23

ASSETS

1,247,581

470,711

805,038

14,994

Cash and cash equivalents

5

Loans and advances to customers

6

898,530

1,051,873

-

-

Advances under finance lease

7

62,418

51,510

-

-

Investment securities:

58,942

49,985

Measured at Fair Value Through Profit or Loss (F

9(a)

6,097

11,800

Fair value through Other Comprehensive Income (F

9(b)

143,656

-

Investment in subsidiaries

10

-

-

559,914

509,389

Other receivables and prepayments

11

216,766

178,223

156,002

148,724

Investment in associates

13

5,906,212

5,728,913

5,906,212

5,728,913

Property and equipment

13

21,234

14,531

1,771

2,259

Right of Use Asset

13(b)

6,000

-

6,000

-

Trustee Assets

8

397,921

485,695

397,921

485,695

Deposit for shares

12(c )

39,000

39,000

39,000

39,000

Total assets

8,998,260

8,070,441

7,877,955

6,940,774

LIABILITIES

1,558,286

1,835,043

443,329

750,048

Borrowings

18

Other liabilities

15

1,353,642

1,689,970

1,190,336

1,623,054

Depositors' funds

18

-

-

-

-

Finance Lease Obligation

20(b)

15,938

168

15,938

15,229

Trustee Liabilities

16

503,802

506,783

503,802

506,783

Current income tax liabilities

19(b)

238,985

240,391

236,695

235,558

Employees benefit liability

14(a)

3,541

4,515

-

974

Deposit for Shares

1,985

-

-

Total liabilities

3,674,194

4,278,855

2,390,100

3,131,646

EQUITY

4,133,349

2,572,685

4,133,349

2,572,685

Share capital

21

Share premium

22

2,690,936

2,690,936

2,690,936

2,690,936

Contingency reserve

23

497,327

599,536

-

-

Retained earnings

24

(1,949,088)

(2,026,044)

(1,287,978)

(1,408,971)

Other component of equity

25

(48,453)

(45,524)

(48,453)

(45,524)

Capital and reserves attributable to owners

5,324,071

3,791,589

5,487,855

3,809,126

Total Equity

5,324,071

3,791,589

5,487,855

3,809,126

Total equity & liabilities

8,998,265

8,070,444

7,877,955

6,940,772

The Financial Statements was approved by the board of directors on

28th January, 2025 and signed on its

5

3

-

(2)

Kenneth Odogwu

Anthony Ogunade

Chairman

for: Chief Financial Officer

(FRC/2013/NBA/00000004195)

(FRC/2023/PRO/ICAN/001/580489)

Consolidated Statement of Profit or Loss and Other Comprehensive Income

For period ended 31 December 2024

Audited

Audited

Audited

Audited

Group

Group

Company

Company

In thousands of Naira

Note

31-Dec-24

31-Dec-23

31-Dec-24

31-Dec-23

Interest Income

26

335,847

268,053

98,000

3,900

Fee and Commission

26

11,162

Interest Expense

26

(174,551)

(258,747)

(10,998)

(80,140)

Net Interest Income

172,458

9,306

87,002

(76,239)

Investment and other income

27

178,513

97,872

104,104

97,872

Share of profit/loss on investment in associate

12

117,299

591,546

117,299

591,546

Net fair value gain or loss on financial assets

28

11,682

39,877

-

15,071

(Charge)/write-back of impairment allowance

29

81,954

(17,047)

-

-

Other operating income

30

1,072

45,846

1,072

1,044

Net Income

562,978

767,400

309,477

629,294

Management expenses

32

(439,545)

(969,388)

(236,458)

(805,101)

Total expenses

(439,545)

(969,388)

(236,458)

(805,101)

(Loss)/Profit before tax

123,433

(201,988)

73,019

(175,807)

Minimum tax

19(a)

(1,138)

(2,963)

(1,138)

(2,963)

Income taxes

19(a)

-

(1,267)

-

-

(Loss)/Profit after taxation from continuing operations

122,295

(206,218)

71,881

(178,770)

Discontinued operations:

-

-

-

-

Loss for the year from discontinued operations

Gain/(Loss) on disposal of Subsidiary

-

-

-

-

(Loss)/Profit after taxation from discontinued operations

-

-

-

-

(Loss)/Profit after taxation for the year

122,295

(206,218)

71,881

(178,770)

Profit/(Loss) is attributable to:

122,295

(206,218)

71,881

(178,770)

Owners of Royal Exchange Plc

Non-controlling interest

-

-

-

-

122,295

(206,218)

71,881

(178,770)

Other comprehensive income, net of tax

Items that will never be reclassified subsequently to profit or loss:

-

-

-

-

Net actuarial gains/(losses) of defined benefit obligations

Share of returns in associates

-

-

-

-

Items that are or may be reclassified subsequently to profit or loss:

-

-

-

-

Changes in fair value of FVOCI investments

Total other comprehensive income, net of tax

-

-

-

-

Total comprehensive income for the period

122,295

(206,218)

71,881

(178,770)

Total comprehensive income attributable to:

122,295

(206,218)

71,881

(178,770)

Owners of Royal Exchange Plc

Non-controlling interest

-

-

-

-

122,295

(206,218)

71,881

(178,770)

Total comprehensive income for the period attributable to owners of Royal

Exchange Plc arising from:

Continued operations

122,295

(206,218)

71,881

(178,770)

Loss for the year from Discontinued operations

-

-

-

-

Gains/(Loss) on disposal of Subsidiary

122,295

(206,218)

71,881

(178,770)

Profit/(Loss) per share - Basic and diluted (kobo)

2

(4)

1

(3)

Group

In thousands of Naira

Other components of equity

Share

Share

Contingency Retained

Treasury

Regulatory

Actuarial

Fair

Other

Equity attributable

Non-

Gain/Loss

value

Component of

Total

to Parent's

controlling

Total Equity

Capital

Premium

Reserve

Earnings

Shares

risk reserve

Reserve

reserve

Equity

Shareholders

Interests

At 1 January 2024

2,572,685

2,690,936

484,801

(2,034,903)

-

482,702

(162)

(51,470)

-

453,171

2,572,685

-

2,572,685

Addition

1,560,664

12,526

-

1,560,664

1,560,664

Net actuarial gains/losses

-

-

-

-

-

-

-

-

-

-

-

Other comprehensive income in the year

-

-

-

-

-

-

-

-

-

-

-

-

Profit/(Loss) for the year

-

-

-

122,296

-

-

-

-

-

122,296

-

122,296

Prior Year adjustment

(36,481)

-

-

Total comprehensive income

4,133,349

2,690,936

497,327

(1,949,088)

-

482,702

(162)

(51,470)

-

453,171

4,255,645

-

4,255,645

Retained earnings

-

-

-

-

-

-

(48,291)

48,291

-

-

-

-

At 31st December 2024

4,133,349

2,690,936

497,327

(1,949,088)

-

482,702

(48,453)

(3,179)

-

453,171

4,255,645

-

4,255,645

Other Component of Equity

Share

Share

Retained

Actuarial

Other

Equity attributable

Non-controlling

Total Equity

Capital

Premium

Earnings

Gain/Loss

Component of

to Parent's

Interests

In thousands of Naira

Reserve

Equity (Total)

Shareholders

At 1 January 2024

2,572,685

2,690,936

(1,408,972)

(45,524)

(45,524)

3,809,125

-

3,809,125

Addition

1,560,664

(2,924)

1,557,740

1,557,740

Prior year adjustment on AFS - REPRU Loan transf

-

-

49,111

-

-

49,111

-

49,111

Profit for the period

-

-

71,880

-

-

71,880

-

71,880

Total comprehensive income

4,133,349

2,690,936

(1,287,981)

(45,524)

(48,448)

5,487,856

-

5,487,856

Transactions within equity:

At 31st December 2024

4,133,349

2,690,936

(1,287,981)

(45,524)

(48,448)

5,487,856

-

5,487,856

Statement of Changes in Equity

At 31st December 2023

Company

Other Component of Equity

Share

Share

Retained

Actuarial

Other

Equity attributable

Non-controlling

Total Equity

Capital

Premium

Earnings

Gain/Loss

Component of

to Parent's

Interests

In thousands of Naira

Reserve

Equity (Total)

Shareholders

At 1 January 2023

2,572,685

2,690,936

(3,124,903)

(45,524)

(45,524)

2,093,197

-

2,093,197

-

-

Profit for the

-

-

(178,771)

-

-

(178,771)

-

(178,771)

Net actuarial gains/losses

-

-

-

-

-

-

-

-

Share of current year results in associates - OCI

-

-

-

-

-

-

-

Prior year adjustments: Retained earnings

1,894,703

-

1,894,703

1,894,703

Total comprehensive income

2,572,685

2,690,936

(1,408,972)

(45,524)

(45,524)

3,809,129

-

3,809,129

Transactions within equity:

-

-

-

-

-

-

-

-

Dividend paid

At 31st December 2023

2,572,685

2,690,936

(1,408,972)

(45,524)

(45,524)

3,809,125

-

3,809,129