VFD Group doubles H1 profit, cuts debt after rights issue
VFD Group has doubled its half-year profit as a shift from capital raising to earnings generation takes hold, prompting a 24-kobo interim dividend and a sharp reduction in borrowings.
VFD Group Plc posted a profit after tax of ₦10.06bn for the six months ended 30 June 2026, a 100.8% increase that signals a successful transition in its business model. The Nigerian Exchange-listed investment firm drove this expansion through a 30.2% rise in investment income to ₦49.13bn, which accounted for 91.5% of its ₦53.71bn in gross earnings.
Profitability expanded at more than three times the rate of the 30.5% consolidated revenue growth. The firm outpaced the combined increase in operating costs, interest expenses and impairment charges. This operating leverage demonstrates that the group is converting top-line growth into tangible shareholder returns rather than simply expanding its balance sheet.
The parent company results highlight the mechanics of this improvement. Gross earnings at the company level jumped 62.5% to ₦23.87bn, while profit before tax surged 295% to ₦5.95bn. Profit after tax grew by 328% to ₦5.03bn.
These figures reflect a deliberate reshaping of the balance sheet using proceeds from a recent rights issue. Shareholders’ funds more than doubled to ₦91.02bn, while borrowings dropped 7% to ₦116.18bn from ₦124.9bn at the end of December 2025. Total assets were marginally lower than the prior year-end position, directly reflecting the deployment of capital to reduce leverage.
“We told the market that the benefits of the rights issue would ultimately be reflected in earnings, and these results clearly validate that expectation,” said Nonso Okpala, Group Managing Director. He noted that earnings per share grew 110% despite an enlarged share base.
Folajimi Adeleye, Executive Director of Finance, said the firm now has the strongest capital position in its history. “Our priority now is straightforward: ensuring that every Naira of new capital consistently generates returns that exceed the cost of the debt it replaced,” he said.
Returning cash to investors, the board declared an interim dividend of 24 kobo per share, totalling roughly ₦3.04bn. For the second half of the year, management intends to continue structured deleveraging and restructure its operating model to strengthen active portfolio management across its financial services, fintech and real estate verticals in Nigeria, Ghana and South Africa.
