Madison Financial Services (LUSE: MFIN) reported a 20% year-on-year increase in net profit to K36 million in financial year (FY) 2014. Earnings per Share (EPS) came in at K0.66 (K0.52 in 2013):
The increase in net profits was driven by:
Madison experienced revenue growth of 23% year-on-year to K406 million in FY 2014:
Growth in the revenue lines was driven by increased business activity, increased capital raising activity and consequent growth in the revenue generating asset portfolio. Increased financing towards the micro-finance loan book which generated a significant increase interest and fee income. Competition continued to be very strong in the insurance sector with premium rate under-cutting a prevalent tactic.
Madison’s stock price closed the year at K3.5, up 12.9% from its Initial Public Offering (IPO) price in 2014.
A final dividend of K0.20 per share was recommended for FY 2014.
In their outlook for 2015, the company said:
The penetration of financial services in Zambia is still low and the Group has set itself a strategic direction built on innovation, responsiveness and discipline to attain by optimizing on the available opportunities. Consequently we are confident of delivering continued growth and improved results for our shareholders.
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *