Shares of VFD Group Plc have soared by 69% so far in April 2025, climbing to N79.80 by the close of trading on April 10, up from N47.20 at the beginning of the month. The dramatic surge comes on the heels of a series of favourable developments, including the company’s newly released financial results and recent strategic investments.
The firm recently published its audited financial report for the year ending 31 December 2024, revealing a pre-tax profit of N11.2 billion. This marks a significant turnaround from the N1 billion pre-tax loss reported in 2023. The improved performance has largely been driven by a substantial rise in investment income, which grew by 97.95% year-on-year to N74.5 billion. Net interest income also witnessed a 95% rise to N58.9 billion, despite an increase in investment-related expenses, which reached N15.5 billion.
Towards the end of March, VFD Group’s board approved new investments in Abbey Mortgage Bank Plc and Bvndle Loyalty Limited, an e-commerce platform. These moves are part of the company’s wider strategy to strengthen the operations of its portfolio companies while seizing fresh, profitable opportunities across the market.
Trading activity in VFD shares has intensified significantly this month, with over 14 million shares exchanged so far in April, propelling the stock well past the N70 threshold.
Looking back, VFD’s performance in 2024 closed with a modest 9% gain, rising from N40.60 to N44.40. January 2025 saw no change in price, with the stock holding steady at N44.40 despite trading volumes of 4.3 million shares. However, bullish momentum picked up in mid-February, with the price surpassing N50 and ending the month at N52.40. Although March ended with a dip to N47.20, April has seen renewed investor enthusiasm, as the price climbed sharply to N79.80 alongside a surge in market activity.
The precise reasons behind the current rally remain unclear, though several key corporate actions appear to have boosted investor sentiment. In February 2025, VFD injected N5 billion into its banking subsidiary, VFD Microfinance Bank (V Bank), to enhance its banking services. This was followed by the March announcement of investments in both Abbey Mortgage Bank and Bvndle Loyalty.
Furthermore, the board sanctioned additional funding for VFD UK and VFD South Africa, aimed at supporting their expansion efforts in the United Kingdom and across the African continent.
The group’s return to profitability has been a pivotal moment, with investment income nearly doubling from N37.6 billion to N74.5 billion in the space of a year. Reflecting on the company’s progress, Group Managing Director and CEO Nonso Okpala stated: “Investments and divestments have helped improve our earnings this year. We are focused on building our financial stability, expanding our investment options, and enhancing our governance, with an emphasis on digital innovation.”