best returning stock in the NGX in 2023
Wole Oshin Custodian Investment Plc, MD/CEO acquires 19.5 million more shares to maintain control
The Managing Director of Custodian Investment Plc, Mr. Wole Oshin, has acquired an additional 19,531,250 Custodian Investment shares at an aggregated share price of N10.56.
This marks an additional N206.25 million acquisition of the company’s shares by Mr. Wole Oshin.
This transaction was carried out on June 7, 2024, in four tranches, as revealed in a corporate notice seen by Nairametrics.
According to the notice, he bought 5,000,000 shares at N10.50 each, another 5,000,000 shares at N10.65 each, 4,531,250 shares at N10.80 each, and 5,000,000 shares at N10.30 each.
On June 7, 2024, the day of the trade, Custodian Investment posted a turnover volume of 21,063,758 ordinary shares, closing at N10.50.
Wole Oshin’s shareholding in Custodian Investment
Apart from being the MD/CEO of Custodian Investment, Wole Oshin is also the largest individual shareholder of Custodian Investment Plc with a 27.05% shareholding.
As of Q1 2024 end, Wole Oshin held 1,591,402,503 Custodian shares, directly, and through his company, Gratitude Capital Limited.
With his latest acquisition, his shareholding in the company will marginally increase to 27.39%.
After Wole Oshin, the next largest individual shareholder in Custodian Investment Plc is Mr. Olakunle Ade-Ojo, who represents a 15.74% shareholding in the company. Olakunle Ade-Ojo, the managing director of Toyota (Nigeria) Limited also serves on the board of the company as a Non-Executive Director.
Ade-Ojo directly holds 1,229,365 shares of the company, while 924,907,141 shares are held through his family’s company, Mikeade Investments Limited.
Wole Oshin, due to his shareholding in Custodian Investment, benefitted from the company’s total dividend of N0.80 per share for the fiscal year 2023, which included an interim dividend of N0.15 for the first half of the year. Consequently, Oshin received a total dividend of N1.27 billion for FY 2023.
Custodian Investment financials
Custodian Investment Plc has grown to become one of Nigeria’s largest non-banking financial services groups. The group’s subsidiaries include Custodian and Allied Insurance, Custodian Life Assurance, Custodian Trustees, CrusaderSterling Pensions, and UPDC Plc.
In FY 2023, Custodian Investment posted a profit after tax of N19.7 billion, representing a 122% increase from the N8.9 billion posted in FY 2022.
The group’s returns for FY 2023 were driven by a 32% growth in its investment gains to N29.8 billion, from N22.6 billion as of FYE 2022.
However, the group’s insurance arms posted a net insurance service loss of N4 billion as of FYE 2023, from a N3.6 billion gain as of FYE 2022.
As of Q1 2024, Custodian posted a net insurance service gain of N7.2 billion, marking a year-on-year 5.5% growth from N6.9 billion as of Q1 2023.
As of Q1 2024, Custodian Investment posted a profit after tax of N10.7 billion, marking a whopping 434.3% year-on-year growth from Q1 2023.
In one quarter, Custodian’s assets increased by 15.4% to N317.4 billion, from N275 billion as of FYE 2023. Essentially, the group is on a run of form that positions to produce increased return on investment for shareholders.
For FY 2023, Custodian Investment Plc produced a dividend yield of 7.2% based on its FYE 2023 closing share price of N9.00, making it one of the best returning stock in the NGX in 2023.
On June 13, 2024, Custodian Investment Plc closed with a share price of N9.35, marking a 10.95% decline from N10.50 posted during the previous session. Year-to-date, Custodian Investment has marginally gained 3.89%.
