Reported Earnings • Jul 28
Second quarter 2026 earnings released Second quarter 2026 results: Net income: ₦100.9m (down 90% from 2Q 2025). Over the last 3 years on average, earnings per share has increased by 34% per year whereas the company’s share price has increased by 32% per year. Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₦1.31, the stock trades at a trailing P/E ratio of 12.7x. Average trailing P/E is 9x in the Insurance industry in Nigeria. Total returns to shareholders of 118% over the past three years. New Risk • May 08
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 26% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks High level of non-cash earnings (26% accrual ratio). Market cap is less than US$10m (₦12.3b market cap, or US$9.05m). Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Profit margins are more than 30% lower than last year (52% net profit margin). Revenue is less than US$5m (₦1.6b revenue, or US$1.2m). Reported Earnings • May 06
First quarter 2026 earnings released First quarter 2026 results: ₦0.01 loss per share. Revenue: ₦201.5m (down 68% from 1Q 2025). Net loss: ₦33.4m (down 107% from profit in 1Q 2025). Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has only increased by 33% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 02
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to ₦1.36, the stock trades at a trailing P/E ratio of 13.2x. Average trailing P/E is 9x in the Insurance industry in Nigeria. Total returns to shareholders of 123% over the past three years. New Risk • May 01
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Nigerian stocks, typically moving 11% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). High level of non-cash earnings (26% accrual ratio). Market cap is less than US$10m (₦11.2b market cap, or US$8.18m). Minor Risks Profit margins are more than 30% lower than last year (52% net profit margin). Revenue is less than US$5m (₦1.6b revenue, or US$1.2m). Valuation Update With 7 Day Price Move • Apr 17
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to ₦1.85, the stock trades at a trailing P/E ratio of 18x. Average trailing P/E is 9x in the Insurance industry in Nigeria. Total returns to shareholders of 194% over the past three years. Aankondiging • Apr 09
Royal Exchange Plc, Annual General Meeting, Apr 30, 2026 Royal Exchange Plc, Annual General Meeting, Apr 30, 2026, at 10:00 W. Central Africa Standard Time. New Risk • Apr 08
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 26% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks High level of non-cash earnings (26% accrual ratio). Market cap is less than US$10m (₦12.5b market cap, or US$9.09m). Minor Risks Share price has been volatile over the past 3 months (10% average weekly change). Profit margins are more than 30% lower than last year (52% net profit margin). Revenue is less than US$5m (₦1.6b revenue, or US$1.2m). Valuation Update With 7 Day Price Move • Apr 01
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₦1.49, the stock trades at a trailing P/E ratio of 13.3x. Average trailing P/E is 11x in the Insurance industry in Nigeria. Total returns to shareholders of 119% over the past three years. Reported Earnings • Jan 31
Full year 2025 earnings released: EPS: ₦0.002 (vs ₦0.13 in FY 2024) Full year 2025 results: EPS: ₦0.002 (down from ₦0.13 in FY 2024). Revenue: ₦1.80b (up 1.1% from FY 2024). Net income: ₦924.0m (down 8.1% from FY 2024). Profit margin: 51% (down from 56% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 37% per year whereas the company’s share price has increased by 39% per year. Valuation Update With 7 Day Price Move • Jan 21
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₦2.40, the stock trades at a trailing P/E ratio of 13.4x. Average trailing P/E is 11x in the Insurance industry in Nigeria. Total returns to shareholders of 236% over the past three years. Valuation Update With 7 Day Price Move • Jan 06
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to ₦2.15, the stock trades at a trailing P/E ratio of 12x. Average trailing P/E is 10x in the Insurance industry in Nigeria. Total returns to shareholders of 137% over the past three years. New Risk • Dec 29
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: ₦14.5b (US$9.98m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (10% average weekly change). High level of non-cash earnings (32% accrual ratio). Market cap is less than US$10m (₦14.5b market cap, or US$9.98m). Minor Risk Revenue is less than US$5m (₦2.0b revenue, or US$1.4m). Valuation Update With 7 Day Price Move • Nov 11
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₦1.70, the stock trades at a trailing P/E ratio of 8.1x. Average trailing P/E is 8x in the Insurance industry in Nigeria. Total returns to shareholders of 163% over the past three years. Aankondiging • Sep 30
Royal Exchange Plc, Annual General Meeting, Oct 10, 2025 Royal Exchange Plc, Annual General Meeting, Oct 10, 2025, at 11:00 W. Central Africa Standard Time. Location: the civic centre, opposite 1004 estate, ozumba mbadiwe, victoria island, lagos Nigeria Valuation Update With 7 Day Price Move • Sep 03
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to ₦1.71, the stock trades at a trailing P/E ratio of 8.1x. Average trailing P/E is 12x in the Insurance industry in Nigeria. Total returns to shareholders of 99% over the past three years. Valuation Update With 7 Day Price Move • Aug 20
Investor sentiment deteriorates as stock falls 28% After last week's 28% share price decline to ₦2.27, the stock trades at a trailing P/E ratio of 10.8x. Average trailing P/E is 12x in the Insurance industry in Nigeria. Total returns to shareholders of 165% over the past three years. New Risk • Aug 04
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 26% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (12% average weekly change). High level of non-cash earnings (26% accrual ratio). Market cap is less than US$10m (₦13.6b market cap, or US$8.95m). Minor Risk Revenue is less than US$5m (₦2.5b revenue, or US$1.7m). Valuation Update With 7 Day Price Move • Jul 30
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to ₦1.54, the stock trades at a trailing P/E ratio of 13.7x. Average trailing P/E is 6x in the Insurance industry in Nigeria. Total returns to shareholders of 80% over the past three years. Reported Earnings • Jul 29
Second quarter 2025 earnings released: EPS: ₦0 (vs ₦0.025 in 2Q 2024) Second quarter 2025 results: EPS: ₦0. Revenue: ₦1.17b (up 262% from 2Q 2024). Net income: ₦1.02b (up 385% from 2Q 2024). Profit margin: 87% (up from 65% in 2Q 2024). The increase in margin was driven by higher revenue. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₦1.02, the stock trades at a trailing P/E ratio of 68.9x. Average trailing P/E is 5x in the Insurance industry in Nigeria. Total returns to shareholders of 35% over the past three years. Valuation Update With 7 Day Price Move • Mar 28
Investor sentiment improves as stock rises 31% After last week's 31% share price gain to ₦1.05, the stock trades at a trailing P/E ratio of 71x. Average trailing P/E is 4x in the Insurance industry in Nigeria. Total returns to shareholders of 15% over the past three years. Reported Earnings • Jan 31
Full year 2024 earnings released: EPS: ₦0.02 (vs ₦0.04 loss in FY 2023) Full year 2024 results: EPS: ₦0.02 (up from ₦0.04 loss in FY 2023). Revenue: ₦655.6m (down 34% from FY 2023). Net income: ₦122.3m (up ₦328.5m from FY 2023). Profit margin: 19% (up from net loss in FY 2023). Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Reported Earnings • Oct 31
Third quarter 2024 earnings released Third quarter 2024 results: Net loss: ₦811.8m (down ₦864.9m from profit in 3Q 2023). Over the last 3 years on average, earnings per share has increased by 106% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Aankondiging • Oct 26
Royal Exchange Plc, Annual General Meeting, Nov 14, 2024 Royal Exchange Plc, Annual General Meeting, Nov 14, 2024, at 10:00 W. Central Africa Standard Time. New Risk • Aug 04
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 61% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (9.9% average weekly change). Shareholders have been substantially diluted in the past year (61% increase in shares outstanding). Market cap is less than US$10m (₦5.62b market cap, or US$3.49m). Minor Risk Revenue is less than US$5m (₦1.7b revenue, or US$1.1m). Reported Earnings • Jul 31
First half 2024 earnings released: EPS: ₦0.09 (vs ₦0.079 in 1H 2023) First half 2024 results: EPS: ₦0.09 (up from ₦0.079 in 1H 2023). Revenue: ₦1.08b (up 145% from 1H 2023). Net income: ₦781.2m (up 297% from 1H 2023). Profit margin: 72% (up from 44% in 1H 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 110% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. New Risk • Feb 11
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (14% average weekly change). High level of non-cash earnings (23% accrual ratio). Revenue is less than US$1m (₦1.1b revenue, or US$730k). Market cap is less than US$10m (₦3.60b market cap, or US$2.46m). New Risk • Nov 18
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Nigerian stocks, typically moving 8.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (₦2.62b market cap, or US$3.12m). Minor Risks High level of debt (54% net debt to equity). Share price has been volatile over the past 3 months (8.1% average weekly change). Revenue is less than US$5m (₦2.0b revenue, or US$2.4m). New Risk • Sep 20
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.6x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.6x net interest cover). Market cap is less than US$10m (₦2.78b market cap, or US$3.58m). Minor Risks Large one-off items impacting financial results. Revenue is less than US$5m (₦908m revenue, or US$1.2m). New Risk • Aug 04
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended December 2022. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-₦779m free cash flow). Earnings have declined by 1.8% per year over the past 5 years. Revenue is less than US$1m. Market cap is less than US$10m (₦3.09b market cap, or US$4.02m). Minor Risk Latest financial reports are more than 6 months old (reported December 2022 fiscal period end). Reported Earnings • Feb 06
Full year 2022 earnings released: ₦0.26 loss per share (vs ₦0.11 loss in FY 2021) Full year 2022 results: ₦0.26 loss per share (further deteriorated from ₦0.11 loss in FY 2021). Net loss: ₦1.35b (loss widened 142% from FY 2021). Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 49% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 4 highly experienced directors. 1 independent director (4 non-independent directors). Independent Director Hewett Adegboyega Benson was the last independent director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Nov 04
Third quarter 2022 earnings released: ₦0.19 loss per share (vs ₦0.07 loss in 3Q 2021) Third quarter 2022 results: ₦0.19 loss per share (further deteriorated from ₦0.07 loss in 3Q 2021). Net loss: ₦998.6m (loss widened 181% from 3Q 2021). Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has increased by 53% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Sep 23
First quarter 2022 earnings released: ₦0.03 loss per share (vs ₦0.02 loss in 1Q 2021) First quarter 2022 results: ₦0.03 loss per share (further deteriorated from ₦0.02 loss in 1Q 2021). Net loss: ₦159.2m (loss widened 67% from 1Q 2021). Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 69% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 4 highly experienced directors. 1 independent director (5 non-independent directors). Independent Director Hewett Adegboyega Benson was the last independent director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Feb 05
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: ₦0.19 loss per share (down from ₦0.076 loss in FY 2020). Revenue: ₦2.75b (down 74% from FY 2020). Net loss: ₦973.2m (loss widened 151% from FY 2020). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 48% per year, which means it is well ahead of earnings. Reported Earnings • Oct 03
First quarter 2021 earnings released: ₦0.02 loss per share (vs ₦0.032 loss in 1Q 2020) The company reported a solid first quarter result with reduced losses, improved revenues and improved control over expenses. First quarter 2021 results: Revenue: ₦2.99b (up 25% from 1Q 2020). Net loss: ₦95.4m (loss narrowed 39% from 1Q 2020). Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 40% per year, which means it is tracking significantly ahead of earnings growth. Is New 90 Day High Low • Jan 13
New 90-day high: ₦0.29 The company is up 16% from its price of ₦0.25 on 15 October 2020. The Nigerien market is up 35% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Insurance industry, which is up 44% over the same period. Is New 90 Day High Low • Dec 01
New 90-day low: ₦0.22 The company is down 29% from its price of ₦0.31 on 02 September 2020. The Nigerien market is up 37% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Insurance industry, which is up 23% over the same period. Reported Earnings • Nov 04
Third quarter 2020 earnings released: EPS ₦0.03 The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2020 results: Revenue: ₦3.07b (down 3.3% from 3Q 2019). Net income: ₦128.4m (down 76% from 3Q 2019). Profit margin: 4.2% (down from 17% in 3Q 2019). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has fallen by 19% per year, which means it is performing significantly worse than earnings. Is New 90 Day High Low • Oct 19
New 90-day low: ₦0.23 The company is down 21% from its price of ₦0.29 on 21 July 2020. The Nigerien market is up 18% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Insurance industry, which is up 8.0% over the same period. Aankondiging • Aug 29
Royal Exchange Plc Auditor Raises 'Going Concern' Doubt Royal Exchange Plc filed its Annual on Aug 24, 2020 for the period ending Dec 31, 2019. In this report its auditor, Deloitte & Touche LLP, gave an unqualified opinion expressing doubt that the company can continue as a going concern. 
