ARBICO : AUDITED FINANCIAL STATEMENT FOR 2021

ARBICO PLC

Lagos, Nigeria ANNUAL REPORT

AND

CONSOLIDATED AND SEPARATE AUDITED FINANCIAL STATEMENTS

AND

OTHER NATIONAL DISCLOSURES

FOR THE YEAR ENDED 31 DECEMBER 2021

ARBICO PLC

ANNUAL REPORT, CONSOLIDATED AND SEPARATE AUDITED FINANCIAL STATEMENTS AND OTHER NATIONAL DISCLOSURES

FOR THE YEAR ENDED 31 DECEMBER 2021

CONTENT

Table of contents	Page
Corporate Information	3
Report of the Directors	4
Corporate governance report	8
Statement of Directors' Responsibilities in Relation to the preparation Of
the consolidated and separate financial statements	12
Certificate of Account	13
Independent Auditor's Report	14
Report of the Audit Committee	20
Consolidated and Separate Statements of Profit or Loss and other Comprehensive Income	21
Consolidated and Separate Statements of Financial Position	22
Consolidated and Separate Statements of Changes in Equity	23
Consolidated and Separate Statements of Cash Flows	24
Notes to the Consolidated and Separate Financial Statements	25
OTHER NATIONAL DISCLOSURES
Value Added Statement	79
Four-Year Financial Summary- The Group	80
Five-Year Financial Summary- The Company	81

CORPORATE INFORMATION

FOR THE YEAR ENDED 31 DECEMBER 2021

DIRECTORS:COMPANY SECRETARY:REGISTERED OFFICE:AUDITORS:REGISTRARS:PRINCIPAL BANKERS:

Chief Kesington Adebutu Mr. Alkimos Makaronidis Elder N.C.U Okoro

Mr. Adebisi Adebutu Mr. Afolabi Aiyeola Mr. Eyo AsuquoOlaniwun Ajayi LP The Adunola

Plot L2, 401 Close Banana Island Ikoyi, Lagos.

Plot D, Block 7 Industrial Crescent Ilupeju, Lagos.

Ernst & Young 10th & 13th Floor UBA House, 57 Marina

Lagos.

Apel Asset Limited

Nigerian Greek Nigerian Nigerian Nigerian Nigerian

8 Alhaji Bashorun Street, Off Norman Williams St Ikoyi 100186, Lagos

Access Bank Plc

First Bank of Nigeria Limited First City Monument Bank Plc Guaranty Trust Bank Limited Heritage Bank Limited

New Prudential Mortgage Bank Limited Polaris Bank Limited

Sterling Bank Plc Union Bank Plc

United Bank for Africa Plc Wema Bank Plc

Zenith International Bank Plc Wema Bank Plc

Chairman Managing Director Non-Executive Director Executive Director Executive Director Non-Executive Director

REPORT OF THE DIRECTORS

FOR THE YEAR ENDED 31 DECEMBER 2021

The directors have pleasure in submitting to the members of Arbico Plc (the Company) their annual report on the affairs of the Company and its subsidiary company (together referred to as "the Group'') with the consolidated and separate audited financial statements for the year ended 31 December 2021.

LEGAL FORM

The company was incorporated on 18 June 1958 as a private limited company under the Companies Ordinance CAP 38 (now the Companies and Allied Matters Act). In 1978, the Company converted to a public limited liability company and its shares became listed on the Nigerian Stock Exchange.

PRINCIPAL ACTIVITIES AND BUSINESS REVIEW

The principal activity of the company is building and civil engineering works. The company has developed capabilities in the planning and construction of a broad spectrum of infrastructure projects for Federal and State Governments, Multinational Companies, Industrial Groups and high net-worth individuals.

SUBSIDIARY

Arbico FZE

Arbico FZE is into building constructions of non-plant and balance buildings for Dangote Oil Refinery projects site. The company was incorporated in April 2018 and commenced operations in May 2020. Arbico Plc owns 99% of the Arbico FZE while the remaining 1% is owned by Mr. Adebisi Adebutu.

RESULTS FOR THE YEAR

Comparative highlights of the operational results of the Group for the years ended 31 December 2021 and 2020 are as stated in the table below.

RESULTS FOR THE YEAR

The Group
2021	2020	2020
N='000	N='000	N='000
Revenue	4,866,795	5,561,881	4,500,010	5,298,014
========	========	========	========
(Loss)/profit before tax	(1,356,667)	644,883	(1,268,266)	1,360,722
Income tax expense	675,078	(231,076)	675,078	(231,076)
--------------	----------------	--------------	-------------
(Loss)/profit for the year	(681,589)	413,807	(593,188)	1,129,646
=======	========	=======	=======
Total comprehensive (loss)/income
for the year, net of tax	(681,589)	745,407	(593,188)	1,461,246
=======	=========	=======	=======
DIVIDEND

The Company 2021 N='000

The directors do not recommend payment of dividend for the year ended 31 December 2021. (2020: Nil).

REPORT OF THE DIRECTORS - Continued

FOR THE YEAR ENDED 31 DECEMBER 2021

DIRECTORS

The names of the Directors at the date of this report and those who held office during the year are as follows:

Chief Kesington Adebutu	Chairman
Mr. Alkimos Makaronidis - Greece	Managing Director
Elder N.C.U Okoro	Non-Executive Director
Mr. Afolabi Aiyeola	Executive Director
Mr. Adebisi Adebutu	Executive Director
Mr. Eyo Asuquo	Non-Executive Director
DIRECTORS' INTEREST
The shareholdings of the Directors in the Group are as follow:

Company	Number of
Name of Directors	appointment	Represented	shares
Elder N.C.U Okoro	Direct	N/A	107,360
Chief Kesington Adebutu	Indirect	R28 LIMITED	N/A
Mr. Alkimos Makaronidis	Indirect	R28 LIMITED	N/A
Mr. Afolabi Aiyeola	Indirect	R28 LIMITED	N/A
Mr. Adebisi Adebutu	Indirect	R28 LIMITED	N/A
Mr. Eyo Asuquo	Indirect	R28 LIMITED	N/A

Status of

SIGNIFICANT CHANGES IN PROPERTY, PLANT AND EQUIPMENT

No significant change apart from normal additions and disposals in the ordinary course of business as shown in Note 16.

SUBSTANTIAL SHARE HOLDING

As at 31 December 2021, the following held 5% or more of the issued capital of the Company:

2021	2020
Unit	%	Unit	%
R28 Limited	103,900,000	69.97	103,900,000	69.97
A.O.G Limited	14,850,000	10.00	14,850,000	10.00
Nigerians	29,750,000	20.03	29,750,000	20.03
-----------------	----------	-----------------	----------
148,500,000	100.00	148,500,000	100.00
==========	=====	==========	=====
FREE FLOAT REPORT
Strategic shareholder	118,750,000	79.97	118,750,000	79.97
Director direct shareholding	107,360	0.07	107,360	0.07
Free Float	29,642,640	19.96	29,642,640	19.96
-----------------	----------	-----------------	----------
148,500,000	100.00	148,500,000	100.00
==========	=====	==========	=====
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