Kakawa Discount has announced an impressive profit before tax of N3.2 billion for the financial year ended December 31, 2010.

According to the company’s  audited financial report released last week  at its recent Annual General Meeting, Kakawa’s Gross Earnings grew by 62 per cent to N10.2 billion from N6.3 billion in 2009  (largely attributable to securities trading activities) just as its total assets grew by 33 per cent to N148.3 billion during the same period.

Similarly, the company’s shareholders’ funds rose to N13.1 billion from N9.7 billion in 2009 _ representing an increase of 34 per cent.

Against the backdrop of the above, and under a regime of prudence that kept the company’s cost–to–earnings ratio at 27 per cent during the same period, the shareholders endorsed a total dividend of N2 billion, which is 50 kobo for every N1.00 ordinary share of Kakawa held as at the close of the financial year under review.

By way of its contribution to the Group strategic imperatives during the period, its subsidiary, Kakawa Asset Management Limited expanded its frontiers within her asset management and stockbroking businesses.

Consequently, it  grew her customer base as well as earnings potential. Specifically, in addition to significantly growing the subscribers’ base of her flagship fund, the Kakawa Guaranteed Income Fund (KGIF), delivered on her promise of guaranteed return on a half yearly basis notwithstanding that the bonds and equities market closed the year on a largely depressed note.

It has also positioned to optimise the opportunities inherent in the anticipated increased investor confidence following the various government and regulatory initiatives (notably, banking sector reforms, commencement of operations by the Asset Management Company of Nigeria, the new leadership at the Nigerian Stock Exchange, stiffer regulatory activities and renewed emphasis on compliance).

The, Chairman, Board of Directors of Kakawa, Mr. Stephen Olabisi Onasanya attributed the remarkable performance in the face of the challenging operating environment to the company’s commitment to “optimizing the very limited opportunities available in the market place while implementing cost management measures in the face of continuing dwindling discount margins.”

He said that Kakawa “remained committed to its business model – Securities Trading, Asset/Wealth Management, and Corporate Finance adding that “Our resilience was once again stretched but found to be sufficiently firm. As the market took new turns, we aligned our activities to take advantage of the available opportunities, especially in the area of securities trading”.

Beyond the financial performance, the Chairman said  “Mission, Vision and Core Values” which, formed the bridge that readily connected us (Kakawa) from the valleys of the prior year to the hills of today”..”