VFD Group Announces Share Price Adjustment and Robust Financial Performance in 2024
VFD Group, a proprietary investment company, has announced a share price adjustment following a 5-for-1 bonus share issuance. This adjustment reflects the increase in the number of shares in circulation resulting from the bonus issue. For every share held by shareholders as of April 22, 2025, five additional bonus shares will be credited, increasing their total holdings sixfold. Importantly, this bonus issue does not change the overall value of each shareholder’s investment at the point of adjustment. The bonus shares are expected to be credited on or before June 14, 2025, pending approval by shareholders at the 2025 Annual General Meeting and final clearance by the Securities and Exchange Commission. This move aims to enhance shareholder value and liquidity in the market.
The announcement of the share price adjustment coincides with the release of VFD Group’s impressive 2024 financial results. The group experienced a significant turnaround, reporting a profit after tax of N8.69 billion, compared to a loss of N0.75 billion in the previous year. This represents a substantial improvement in profitability, driven by strategic investments and divestments. Gross earnings also saw a remarkable increase of 94%, reaching N87.76 billion compared to N45.36 billion in 2023. Profit before tax similarly surged to N11.25 billion, a stark contrast to the N1.02 billion loss incurred in the previous financial year. These positive results demonstrate the group’s successful implementation of its investment strategy and the resilience of its business model.
Nonso Okpala, the Group Managing Director/Chief Executive Officer, attributed the strong performance to the effectiveness of the group’s investment strategy, the resilience of its business model, and a focus on digital innovation. He highlighted the strategic investments and divestments undertaken during the year as key drivers of the improved financial outcomes. Okpala emphasized the group’s commitment to reinforcing financial resilience, expanding its investment portfolio, and strengthening its governance framework. These initiatives have collectively contributed to the significant growth in earnings and profitability. The successful rights issue of N12.5 billion played a crucial role in enhancing the group’s financial standing.
The rights issue, according to Okpala, fueled an impressive 80% growth in shareholders’ funds, which reached approximately N58.53 billion. This robust capital base, combined with an improved leverage profile, positions VFD Group for sustained growth and long-term financial stability. The increased capital provides a solid foundation for future investments and strengthens the group’s ability to withstand market fluctuations. The positive trajectory suggests a promising outlook for the company’s future performance and its capacity to deliver continued value to its shareholders.
Looking ahead to 2025, Okpala outlined the group’s ambitious plans to capitalize on emerging opportunities across Africa and the Western world. The focus will be on leveraging innovation, strategic partnerships, and disciplined execution to maintain market leadership and deliver long-term value to shareholders. This expansion strategy aims to diversify the group’s investment portfolio and broaden its geographical reach, further bolstering its growth prospects. The combination of a solid financial foundation and a forward-looking strategy positions VFD Group for continued success in the coming years.
The group’s commitment to digital innovation is expected to play a pivotal role in achieving these objectives. By embracing cutting-edge technologies and fostering a culture of innovation, VFD Group aims to stay ahead of the curve in the rapidly evolving financial landscape. This focus on innovation will also enable the group to identify and capitalize on new market opportunities, contributing to its sustained growth trajectory. The combination of strategic investments, a strong capital base, and a focus on innovation paints a positive picture for VFD Group’s future prospects.
