VFD Group Climbs by 10% in Fresh Rally
Diversified investment company, VFD Group Plc, equities market value increased by about 10% week on week due to bargain hunting on the Nigerian Exchange (NGX). The company beat analysts earnings projections in the third quarter of 2024.
And its bonus issue capitalisation appears to have helped stemming volatility for a company with three major shareholders. VFD reported that only three shareholders have significant interest above 5% in the group.
Osnon Capital Limited (19.18%), Jotani Investment Limited (7.92%), and Adewumi Mobolaji (7.48%). In the equities market, the company share price increased by about 9.9% to close at N44.5 on Friday due to one day bargain hunting in the local bourse.
The investment company’s share price surged after 28,040 volume of shares were traded at the beginning of the week in the local bourse. After its bonus share capitalisation, VFD group price volatility has eased, and it is more difficult to target the company for hostile takeover with its huge shareholding volume.
With 1.266 billion shares outstanding, VFD group market value surged to N56.4 billion after its price popped higher due to demand. At the current price, the investment is trading slightly below its 52-week high of N45 in the equities market.
At the end of 9M of the financial year 2024, VFD Group declared N4.465 billion as profit after tax, a significant year-on-year increase compared with about N682 million in profit made in the comparable period in 2023.
The net income spiked as the group was able to grow gross earnings from N29.025 billion at the end of 9M-2023, up by 55% to N45.013 billion at the end of 9M-2024.
Net revenue surged by more than 111% to N18.266 billion at the end of the period from N8.643 billion. The group’s operating expenses increased by about 73% year on year to N13.316 billion from N7.710 billion. The investment company ended the 9M-2024 with about N4.5 billion as net income. # VFD Group Climbs by 10% in Fresh Rally Nigeria’s Eurobonds Yield Sinks to 9% as Demand Heats Up
