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CITITRUST HOLDINGS PLC
MANAGEMENT REPORT AND ACCOUNTS
FOR THE YEAR ENDED 31ST DECEMBER 2019
_____________________________________________________________________________________
CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
Management Report and Accounts
C o n t e n t s Page
Corporate Information 2
Result at a Glance 3
Report of the Directors 4-5
Report of the Management 6
Statement of Financial Position 7
Income Statement 8
Statement of Changes in Equity 9
Statement of Cash Flows 10
Notes on the Accounts 11-17
Statement of Value Added 18
1
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
Corporate Information
Registration No: - RC 1550836
Operating Address: - 43, Ademola Street,
Off Awolowo Way,
Ikoyi,
Lagos.
2
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
Directors: - Ifiabor Ohio Akoudo
- Adefisan-Williams Adeyemi Adebayo
- Ogochukwu Temitope Kehinde
- Ajila Oluwaseun Bolanle
- Olaoye Oyelakin
- Thankappan Padman Praveen
- Alhaji Danladi Yaro
RESULT AT A GLANCEYear ended 31st December, 2019
Balance Sheet CHP Group
N N
Total Assets 3,697,974,074 16,209,126,197
Net Assets 610,733,733 1,686,879,961
Share Capital 500,000,000 500,000,000
Shareholders' Funds 610,733,733 1,686,879,961
No. of shares in issue(Units) 1,000,000,000 1,000,000,000
Profit and Loss Account:
Turnover 403,800,000 5,772,184,686
Profit Before Taxation 142,352,863 459,065,253
Taxation (31,619,130) (83,536,165)
Profit After Taxation 110,733,733 375,529,088
Per Share Data:
Earnings per share (Kobo) 11 38
Net assets per share (Kobo) 61 169
Total assets per share (Kobo) 370 1,621
3
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
Report of the DirectorsYear ended 31st December, 2019
The directors submit their report together with the accounts for the year ended 31st December, 2019.
1 LEGAL STATUS
Cititrust Holdings PLC was incorporated under the Companies and Allied Matters Act, 1990 as a
Public Limited Company, on the 3rd January, 2019. The Shares is 100% Owned by Nigerians
and commenced business on January 7th, 2019. The Company carries on business as a
Holding Company.
CHP Group
2 OPERATING RESULTS N N
Turnover 403,800,000 5,772,184,686
The Profit for the year after taxation was 110,733,733 375,529,088
Profit brought forward - -
Profit carried forward 110,733,733 375,529,088
3 BOARD OF DIRECTORS
The directors that acted throughout the year. They are:
4 EMPLOYMENT AND EMPLOYEES
Employment of disabled persons
It is the policy of the company that there should be no discrimination in considering applications
for employment including those for disabled persons. As at 31st December, 2019, there was no
disabled person in the employment of the company.
Health, Safety & Welfare
Health and safety regulations are in force within the company's premises and employees are
aware of existing regulations. The company provides subsidy to all levels of employees for medical,
transportation, housing, etc.
Training
The company attaches great importance to training and manpower development as an investment
in people and thus in its future. The company therefore sponsored various manpower development
programmes for the staff during the year.
4
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
- Ifiabor Ohio Akoudo
- Adefisan-Williams Adeyemi Adebayo
- Ogochukwu Temitope Kehinde- AjilaOluwaseun Bolanle- Olaoye Oyelakin- Thankappan Padman Praveen- Alhaji Danladi Yaro
Report of the Directors - (Cont'd)Year ended 31st December, 2019
Movements in fixed assets during the year are shown in note 1 on page 11.
7 POST BALANCE SHEET EVENTS
There are no post balance sheet events which could have any significant effects on the state
of affairs of the company as at 31st December, 2019 and for the year ended on that date
which have not been adequately provided for, in these financial statements.
8 DIRECTORS' RESPONSIBILITIES
In accordance with the provisions of Sections 334 and 335 of the Companies and Allied Matters
Act, 1990 the company's directors are responsible for the preparation of the financial statements
which give a true and fair view of the state of affairs of the company as at the end of the financial
year and of its profits and cash flows for that year and which comply with the provisions of the Act.
These responsibilities include:-
(i) ensuring that internal control procedures are instituted to safeguard assets and prevent
and detect fraud and other irregularities,
(ii) ensuring that proper accounting records are maintained,
(iii) ensuring that applicable accounting standards are followed,
(iv) ensuring that suitable accounting policies are used and consistently applied; and
(v) ensuring that the financial statements are prepared on the going concern basis unless
it is inappropriate to presume that the company will continue in business.
9 AUDITORS
Messrs. Logic Professional Services - Chartered Accountants have expressed their willingness to
continue in office, and will be reappointed in accordance with Section 357(2) of the Companies
and Allied Matters Act, 1990.
BY ORDER OF THE BOARD
SECRETARY
LAGOS,
NIGERIA. 5
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
6 FIXED ASSETS ACQUISITION
5 SHAREHOLDING STRUCTURE
According to the register of members as at 31st December 2019, the following is the range analysis:
Report of the Management to the Members of
Cititrust Holdings PLC - Group
The management of Cititrust Holdings PLC - Groupare delighted to present the management accounts
as well as accounting policies adopted by the company in preparing the management account to the
stakeholders for the year ended 31st December 2019.
Responsibilities of Directors
The Management are responsible for the preparation of the financial statements which is prepared in line
with accounting policies and other regulatory requirement and pronouncement.
Basis of Opinion
The management account is drawn up in conformity with generally accepted accounting principles and the
accounting standards issued to date by the Nigerian Accounting Standards Board, are in agreement
with the books of account which have been properly kept. There are no matters that could have
material effect on going concern of the company or threatened the corporate existence of the organisation
or its Directors.
We prepared these financial statements using all the information and explanations which we considered
necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial
statements are free from material mis-statement, whether caused by fraud or other irregularities or errors.
In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the
financial statements.
Opinion
In our opinion, the financial statements give a true and fair view of the state of affairs of the Company
as at 31st December 2019 and of the profit and cash flow for the period ended on that date, and
comply with the requirements of the Companies and Allied Matters Act, 1990.
Director………………… Director………………….
6
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
Statement of Financial PositionAs At 31st December, 2019 CHP Group
2019 2019
ASSETS Note N N
NON CURRENT ACCOUNTS
Property, Plant and Equipment 4 196,364,596 1,424,711,611
Investments 7 2,351,067,943 72,354,142
Intangible Assets 5 - 96,003,000
Statutory Deposits with CBN 6 - 110,516,636
Loans and Advances 8 - 4,502,550,677
2,547,432,539 6,206,136,064
CURRENT ASSETS
Inventory 9 - 2,245,186,741
Accounts Receivable 10 89,400,004 5,827,298,026
Cash and Cash Equivalents 11 1,061,141,531 1,930,505,366
1,150,541,535 10,002,990,133
TOTAL ASSETS 3,697,974,074 16,209,126,197
EQUITY & LIABILITIES
EQUITY
Share capital 14 500,000,000 500,000,000
Revenue Reserve 15 110,733,733 1,186,879,961
Shareholders' fund 610,733,733 1,686,879,961
CURRENT LIABILITIES Accounts Payable 12 689,481,494 5,225,392,579
Income Tax Payable 13 31,619,130 83,536,165
721,100,624 5,308,928,745
NON CURRENT LIABILITIES
Loans and Borrowings 17 2,366,139,717 3,900,190,151
Managed Funds 16 - 5,313,127,340
2,366,139,717 9,213,317,491
TOTAL EQUITY & LIABILITIES 3,697,974,074 16,209,126,197
The financial statements and notes on pages 7 to 17 were approved
by the Directors on ……...…………….... and signed on their behalf by:
DIRECTORS
7
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
Income StatementYear ended 31st December, 2019
CHP Group
2019 2019
Note N N
Revenue 18 403,800,000 5,772,184,686
Direct Cost of Sales 19 (223,836,898) (4,991,474,795)
Gross Profit 179,963,102 780,709,891
Other Income 4,326,274 455,297,977
Operating expenses:
Loan Impairment Charges - (32,636,758)
Administration expenses 20 (29,592,459) (417,073,494)
Operating profit on ordinary business 154,696,917 786,297,616
Finance Cost 22 (12,344,054) (327,232,363)
Profit on ordinary activities before
taxation 23 142,352,863 459,065,253
Taxation provision 24 (31,619,130) (83,536,165)
Profit after taxation 110,733,733 375,529,088
Appropriation:
Retained profit transferred to
revenue reserve 110,733,733 375,529,088
Earnings per share of N0.50k 11 38
8
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
Statement of Changes in EquityYear ended 31st December, 2019
CHP Share capital
Retained
Earnings Total equity
N N N
For the year ended 31 December 2019
As at 1 January 2019 - - -
Share Capital 500,000,000 - 500,000,000
Profit for the year - 110,733,733 110,733,733
Total comprehensive income
At 31 December 2019 500,000,000 110,733,733 610,733,733
GROUP Share capital
Retained
Earnings Total equity
N N N
For the year ended 31 December 2019
As at 1 January 2019 - 811,350,873 811,350,873
Share Capital 500,000,000 - 500,000,000
Profit for the year - 375,529,088 375,529,088
Total comprehensive income
At 31 December 2019 500,000,000 1,186,879,961 1,686,879,961
9
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
Statement of Cash FlowsYear ended 31st December, 2019
CHP Group
2019 2019
Cash Flow From Operating Activities N N
Profit before taxation 142,352,863 459,065,253
Adjustments:
- Depreciations and Amortization 7,879,414 150,363,086
Operating Profit Before Working Capital Changes 150,232,277 609,428,339
- Inventory - (2,245,186,741)
- Increase in Accounts Receivable (89,400,004) (5,827,298,026)
- Increase in Accounts Payable 689,481,494 5,225,392,579
Cash Generated From Operations 750,313,767 (2,237,663,849)
- Tax paid - -
750,313,767 (2,237,663,849)
Cash Flow from Investing Activities
- Purchase of Fixed Assets (204,244,010) (1,575,074,697)
- Purchase of Intangible Assets - (96,003,000)
- Investments (2,351,067,943) (72,354,142)
- Loans and Borrowings - (3,691,199,803)
(2,555,311,953) (5,434,631,641)
Cash Flow From Financing Activities
- Share Capital 500,000,000 500,000,000
- Borrowings 2,366,139,717 3,900,190,151
- Managed Funds - 5,313,127,340
- Statutory Deposits with CBN - (110,516,636)
2,866,139,717 9,602,800,856
Net Increase in Cash and Cash Equivalent 1,061,141,531 1,930,505,366
Cash and Cash Equivalent at January - -
Cash and Cash Equivalent at December 1,061,141,531 1,930,505,366
Represented By:
Cash and bank balance 1,061,141,531 1,930,505,366
10
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
Notes to the AccountYear ended 31st December, 2019
1 REPORTING ENTITYCititrust Holdings PLC ('CHP’) is a company domiciled in Nigeria. The Principal Activity of the
Company is to carry on business as a Holding Company.
2 BASIS OF PREPARATIONa. Statement of Compliance
The financial statements have been prepared in accordance with International Financial
Reporting Standards (IFRS) as issued by the International Accounting Standards Board.
The financial statements comply with the Company and Allied Matters Act, and the
Financial Reporting Council of Nigeria Act, 2011.
b. Basis of Measurement
The financial statements have been prepared on the historical cost basis unless other-
wise stated.
c. Functional and Presentation Currency
These financial statements are presented in naira, which is the company’s functional
currency. Except as otherwise indicated, financial information presented in naira has
been rounded to the nearest thousand.
d. Use of Estimates and Judgements
The preparation of financial statements in conformity with IFRS requires management
to make judgments, estimates and assumptions that affect the application of policies and
reported amounts of assets and liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience and various other factors that
are believed to be reasonable under the circumstances, the results of which form the
basis of making the judgments about carrying values of assets and liabilities that are not
readily apparent from other resources. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the year in which the estimate is revised and
in any future periods affected
3 SIGNIFICANT ACCOUNTING POLICIESThe Company has consistently applied the following accounting policies to all periods presented
in these consolidated and separate financial statements, unless otherwise stated
11
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
Notes to the AccountYear ended 31st December, 2019
The principal accounting policies adopted in the preparation of these financial statements are set
out below:
a. TURNOVER:
Turnover represents amount invoiced in respect of sales to third parties during the year, net of
sales commission.
b. INTANGIBLE ASSETS
lives. purchased of computer software and software licences are recognised as intangible assets
if there is sufficient certainty that future economic benefits associated with the item will flow to
the company. These assets are measured on initial recognition at cost which comprises external
costs and other directly attributable costs. Subsequently,computer software and software licences
are carried at cost less accumulated amortisation and accumulated impairment losses if any.
Amortisation is calculated using the straight-line method over 10 years. The amortisation period
of computer software and software licences is reviewed at least at the end of each reporting period.
c. PROPERTY, PLANT AND EQUIPMENTS
Assets Range of Years
Computers 5 years
Motor Vehicles 4 years
Plant & Machinery 5 years
Furnitures and Fiitings 5 years
Land 10 years
12
Intangible assets include purchased computer software and software licences with finite useful
All property, plant and equipment is shown at cost, less accummulated depreciation and impairment.
Cost includes expenditure that is directly attributable to the acquisition of the assets. Subsequent
costs are included in an asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the
Company and the cost of the item can be measured reliably. All other repair and maintenance
expenditures are charged to the Income Statement during the financial period in which they are
incurred.
Depreciation is calculated using the straight-line method to reduce the cost of each asset to its
residual value over its useful life as follows:
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
Notes to the AccountYear ended 31st December, 2019
d. TRADE RECEIVABLES
e. TRADE AND OTHER PAYABLES
Trade and other payables are stated at cost.
f. CASH AND CASH EQUIVALENTS
g. CURRENT AND DEFERRED TAXATION
h. SHARE CAPITAL
Shares are classified as equity when there is no obligation to transfer cash or other assets.
13
Other receivables may be financial assets or non-financial assets. Financial assets are categorised as
loans and receivables and are initially measured at fair value and subsequently measured at amortised
cost. Non-financial assets are measured in respect to the applicable standards.
Cash and cash equivalents comprise cash in hand, current balances with banks and similar
institutions and highly liquid investments with maturities of three months or less when acquired. They
are readily convertible into known amounts of cash.
Income tax expense comprises current and deferred tax. It is recognized in profit or loss except to the
extent that it relates to items recognized directly in equity or in OCI.
“Current tax” comprises the expected tax payable or receivable on the taxable income or loss for the
year and any adjustment to the tax payable or receivable in respect of previous years. It is measured
using tax rates enacted or substantively enacted at the reporting date.
Current tax also includes any tax arising from dividends.
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Trade receivables are measured at fair value at the date of trade plus directly attributable transaction
costs on initial recognition and are subsequently measured at amortised cost using the effective
interest rate method due to the loan and receivable measurement category. Appropriate allowances for
estimated irrecoverable amounts are recognised in the statement of profit or loss when there is
objective evidence that the asset is impaired.
Subsequent recoveries of amounts previously provided for are credited to the statement of profit or loss
and other comprehensive income. Long-term receivables are discounted where the effect is material.
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
Notes to the AccountYear ended 31st December, 2019
4 PROPERTY, PLANT AND EQUIPMENT
Motor Furniture & Computer Land &
Vehicles Fittings Equipments Building Total
Cost/Valuation N N N N N
At 01/1/2019 - - - - -
Additions 15,000,000 2,940,000 3,140,745 183,163,265 204,244,010
At 31/12/2019 15,000,000 2,940,000 3,140,745 183,163,265 204,244,010
Depreciation:
At 01/1/2019 - - - - -
3,000,000 588,000 628,149 3,663,265 7,879,414
At 31/12/2019 3,000,000 588,000 628,149 3,663,265 7,879,414
Net Book Value:
At 31/12/2019 12,000,000 2,352,000 2,512,596 179,500,000 196,364,596
CHP Group
2019 2019
N N
5 INTANGIBLE ASSETS - 96,003,000
- 96,003,000
6 STATUTORY DEPOSIT WITH CBN - 110,516,636
- 110,516,636
7 INVESTMENTS
Treasury Bills - 1,790,729
Investment inFX Online - 5,400,000
Investment in Subsidiaries 2,351,067,943 -
Private Placement - 65,163,413
2,351,067,943 72,354,142
8 LOANS AND ADVANCES - 4,502,550,677
- 4,502,550,677
14
Charge for the
year
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
Notes to the AccountYear ended 31st December, 2019 CHP Group
2019 2019
N N
9 INVENTORY - 2,245,186,741
- 2,245,186,741
10 ACCOUNTS RECEIVABLE
Trade Receivable 82,400,000 4,697,652,063
Other Receivables - 33,754,003
Prepayments 7,000,004 1,095,891,960
89,400,004 5,827,298,026
11 CASH AND CASH EQUIVALENT
Cash and Bank Balance 1,061,141,531 1,930,505,366
1,061,141,531 1,930,505,366
12 ACCOUNTS PAYABLE
Deposit from Customers - 528,527,550
Accurals & Other Payables 689,481,494 4,532,619,759
Payable to CHP - 164,245,270
689,481,494 5,225,392,579
13 INCOME TAX PAYABLETaxation (See Note 24) 31,619,130 83,536,165
31,619,130 83,536,165
14 SHARE CAPITAL
Authorised: 1,000,000,000 Ordinary shares of N0.50k each 500,000,000 500,000,000
Issued and Fully Paid Up: 500,000,000 500,000,000
15 REVENUE RESERVE
Balance brought forward - 811,350,873
Transfer from profit and loss account 110,733,733 375,529,088
Balance carried forward 110,733,733 1,186,879,961
16 DEPOSIT FOR SHARES - 5,313,127,340
17 LOANS AND BORROWINGS
Borrowings 2,366,139,717 3,900,190,151
2,366,139,717 3,900,190,151
15
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
Notes on the Accounts - (Cont'd)
Year ended 31st December, 2019 CHP Group
2019 2019
N N
18 REVENUE
Invoiced Amounts to Clients 403,800,000 5,772,184,686
403,800,000 5,772,184,686
19 DIRECT COST OF SALES
Cost of Sales 223,836,898 4,991,474,795
223,836,898 4,991,474,795
20 ADMINISTRATION EXPENSES
Salaries and Wages 8,840,000 129,123,123
Fueling 588,300 4,633,082
Printing and Stationery 331,500 4,542,003
Telephone & Internet 682,500 10,192,007
Rent 1,000,000 12,500,000
Repairs and Maintenance 566,200 30,416,925
Cleaning 150,000 21,470,771
Electricity 184,000 23,260,003
Legal & Professional Expenses 3,750,000 10,000,000
Medical Expenses 600,000 1,487,500
Office Expenses 3,097,445 8,678,750
Transport and Travelling 1,923,100 10,406,245
Depreciation (See Note 21) 7,879,414 150,363,086
29,592,459 417,073,494
21 DEPRECIATION
Motor Vehicles 3,000,000 58,735,581
Furniture & Fittings 588,000 35,241,348
Computer Equipments 628,149 46,988,464
Land and Building 3,663,265 9,397,693
7,879,414 150,363,086
22 FINANCE COST
Bank Charges 513,355 2,365,950
Interest on Loan / Overdraft 11,830,699 324,866,413
12,344,054 327,232,363
16
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
Notes on the Accounts - (Cont'd)
Year ended 31st December, 2019
CHP Group
2019 2019
N N
23 PROFIT BEFORE TAXATION
The profit for the year was arrived at
after charging:
- Depreciation 7,879,414 150,363,086
- Auditors' remuneration - -
24 TAXATION
.i Income Tax:
Balance brought forward - -
Provision for the year 28,614,484 77,286,705
28,614,484 77,286,705
Payment in the year
Balance carried forward 28,614,484 77,286,705
ii Education Tax:
Balance brought forward - -
Provision for the year 3,004,646 6,249,460
3,004,646 6,249,460
Payment in the year
Balance carried forward 3,004,646 6,249,460
(i) + (ii) 31,619,130 83,536,165
17
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
Statement of Value AddedYear ended 31st December, 2019
N % N %
Turnover 403,800,000 5,772,184,686
Bought in Goods and Services (232,897,024) (4,708,766,811)
Value Added 170,902,976 100 1,063,417,875 100
Applied as Follows:
To Pay Employees:
- Salaries and wages 8,840,000 5 129,123,123 12
To Pay Government:
- Income tax 28,614,484 77,286,705
- Education tax 3,004,646 31,619,130 19 6,249,460 83,536,165 8
To Pay Providers of Capital:
- Interest Expense 11,830,699 7 324,866,413 31
To Provide for Maintenance of
Assets and Expansion:
- Depreciation 7,879,414 5 150,363,086 14
- 110,733,733 118,613,148 65 375,529,088 525,892,174 35
Value Added 170,902,976 100 1,063,417,875 100
Value added represents the additional wealth which the company has been able to create by its own
and its employee's efforts. The statement shows the allocation of that wealth between employees,
shareholders, government and that retained for future creation of more wealth.
18
CHP
2019
Retained Profit
GROUP
2019
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019
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CITITRUST HOLDINGS PLC - GROUP Management Report and Accounts, 2019