Goldlink Insurance Plc (GICO) has joined the companies rewarding its investors after the last Capital Market and world economic meltdown as it plans to approve a 0.2 Kobo dividend payout to shareholders of the company for year 2009 Financial Year End (FYE) at its forthcoming 17^th Annual General Meeting (AGM) scheduled for Thursday July 22 2010 in Lagos Nigeria.

 

Femi Okunniyi, Managing Director/Chief Executive Officer (MD/CEO) of Goldlink affirmed to investadvocate in a telephone chat Tuesday 12 2010 in Lagos Nigeria that despite the tough economic situation, Goldlink has been able to achieve the feat of performing well in its operations.

 

The economy is very tough; we don’t know the index of measuring it now, but to God is the glory, what we are able to achieve now is significant” Okunniyi said.

 

He confirmed to investadvocate that this was as a result of teamwork and the dedication of staff of the company. “If we continue this way, we would do better in year 2010: he affirmed.

 

Financial result of the company made available to investadvocate shows that Profit after Tax (PAT) dropped from N406.444 million in year 2008 to N61.811 million in year 2009 indicating a drop of 85 percent (85%) in the review period.

 

While Profit before Tax (PBT) also declined from N492.114 million in year 2008 to N103.519 million in year 2009 FYE representing a decline of 79 percent (79%).

 

Though Gross Premium rose by 41 percent (41%) from N3.471 billion in year 2008 to N4.014 billion in year 2009 indicating a rise of 15.64 percent (15.64%) in the period under review.

 

However, investadvocate observed without prejudice, as contained in the company’s year 2009 Annual Reports and financial statement, 41 percent (41%) was shown as the percentage increase instead of 15.64%.

 

In the same vein, Gbenga Afolayan, Chairman of the company in his statement affirmed that during year 2009, the National Insurance Commission (NAICOM) came out with new regulations that addressed some provisions in the accounts of the Insurance companies.

 

“These new laws/regulations are in line with some provisions in the universal accounting standards and policies. Nevertheless, the drop in our bottom lines was as a result of the full implementations of these provisions; substantial deductions were made for Reinsurance cost, thus N570 million against N315 million in 2008 and provision for bad/doubtful debts of N341 million as against N52 million in year 2008” Afolayan affirmed.

 

However, as at the time of filling in this report, investadvocate Analyst Services Unit is yet to do its analysis and come out with a position on the Goldlink year 2009 Annual Reports and Accounts.