- Home
- StockWorld
- UACN Property Plc: In Search of Profitability Growth
UACN Property Plc: In Search of Profitability Growth
- By Kayode Ogunwale
- Published September 13th, 2010
- StockWorld
- Unrated
Company profile
UACN Property Development Company Plc UPDC is a Nigeria-based company principally engaged in commercial and residential properties development and maintenance. the company’s residential properties focuses on the development and management of homes at both the individual and corporate clients level and it also concentrates on residential investment including, management of rented properties and serviced estates. Business properties unit deals with the development and management of business properties and rest houses. The company has various brands under four categories namely, classic homes, business properties, premium homes and luxury apartments.
In 1879, the United African Company was formed following the merger of four European companies trading up the River Niger: Alexander Miller Brother & Company, Central African Trading Company Limited, West African Company Limited and James Pinnock. The merged company was set up to provide warehouses for produce, offices and exclusive residential accommodation. The United African Company had a significant real estate holding in all parts of Nigeria to meet these ends. UACN Property Development Company Plc (UPDC) operated as a division of UAC of Nigeria Plc until 6th of October, 1997, when the business was incorporated as a public limited liability company and listed on the Nigerian Stock Exchange (NSE) on 19th November, 1998 under real estate sector. Following a review of its business, UPDC is now pursuing a niche strategy; it is focusing its energies on the premium real estate market of carefully selected key cities of Nigeria.
Management
UPDC has 8 man board headed by Mr. Larry E. Ettah. Mr. Hakeem D. Ogunniran is the managing director and chief executive of the company. Mrs. Folasade O. Ogunde is executive director of the company. Non-executive directors are Mr. Abdul A. Bello, Hon. Dr. Ibrahim A. Mohammed, Mr. Olumide A. Oduntan, Mr. Babatunde O. Kasali, Mrs. Halima T. Alao and Mrs. Nana Dawodu.
Financing Structure
The authorized share capital of UPDC Plc in the year under review is 2 billion ordinary shares of 50 kobo each worth N1 billion, while its issued and fully paid up capital stands at 1.1 billion ordinary shares of 50 kobo valued at N550 million as at the end of its financial year ended 31 December, 2009. Shareholders funds of the company was N30.9 billion in 2008, it went down to N29.8 billion at the end of the immediate past financial year as the value depreciated by N1.121 billion which was 4 per cent.
Fixed assets went up by N2.442 billion or 18 per cent to stand at N16.262 billion in 2009 from N13.820 billion which it had at the end of its 2008 financial year. The current assets also went down from N20.369 billion in 2008 to N19.675 billion at the end of 2009 financial year. This is a N694 million or 3.4 per cent rise in its current assets. Total assets less current liabilities drop by N3.589 billion or 9 per cent during the year under review. From the value of N40.245 billion in 2008 it stand at N36.656 billion in 2009.
Profitability
UPDC Plc turnover for the 2009 financial year was N13.331 billion. This is a 0.023 per cent or N3.043 million increase when compared to a turnover of N13.328 billion which it made in 2008. Cost of sales of the company rose from N8.331 billion in 2008 to N8.600 billion in 2009. This is an increase of N269 million or 3.2 per cent. It made N4.731 billion gross profit in the review period of 2009 as against N4.997 billion in 2008, which is N266 million or 5.3 per cent decreased. UPDC spent N1.274 billion on administrative expenses during its 2009 financial year. This shows N464.075 million or 57 per cent increase when compared to N809.615 million which it spent for the same purpose in 2008. Profit before taxation and non-controlling interest went down by N888 million or 24 per cent during the review period from N3.717 billion in 2008 to N2.828 billion in 2009. Profit after taxation and non-controlling interest was shoot-down by N1.254 billion or 34 per cent in 2009 as against N2.435 billion in 2008; it made N3.689 billion in 2009.
Liquidity
Current ratio in 2008 was 0.86:1. Current assets of the company can only take care of 86 per cent of its current liabilities. In 2009, the situation was change. It was 0.77:1. Its current assets can take care of 77 per cent of its current liabilities. The situation presented a decline if its inventory is taking out of the assets. In 2008, it came down to 0.77:1. Its current assets minus stock could only take care of only 77 per cent of its liabilities. In 2009, it went down to 0.65:1. Its current assets minus stock could only provide for take care of only 65 per cent of its liabilities.
Future Outlook
The management board of UPDC promised to take advantage of the emerging opportunities in this period of economic downturn to improve the company’s profitability.
Analysts Opinion
The company’s turnover rose by 0.023 per cent and its gross profit went down by 5.3 per cent. In 2009, cost of sales rose by 3.2 per cent in the year under review. The earning per share of the company went down from 3.35 kobo it recorded in 2008 to stand at 2.21 kobo at the end of the year under review.
UACN Property Development Company Plc UPDC is a Nigeria-based company principally engaged in commercial and residential properties development and maintenance. the company’s residential properties focuses on the development and management of homes at both the individual and corporate clients level and it also concentrates on residential investment including, management of rented properties and serviced estates. Business properties unit deals with the development and management of business properties and rest houses. The company has various brands under four categories namely, classic homes, business properties, premium homes and luxury apartments.
In 1879, the United African Company was formed following the merger of four European companies trading up the River Niger: Alexander Miller Brother & Company, Central African Trading Company Limited, West African Company Limited and James Pinnock. The merged company was set up to provide warehouses for produce, offices and exclusive residential accommodation. The United African Company had a significant real estate holding in all parts of Nigeria to meet these ends. UACN Property Development Company Plc (UPDC) operated as a division of UAC of Nigeria Plc until 6th of October, 1997, when the business was incorporated as a public limited liability company and listed on the Nigerian Stock Exchange (NSE) on 19th November, 1998 under real estate sector. Following a review of its business, UPDC is now pursuing a niche strategy; it is focusing its energies on the premium real estate market of carefully selected key cities of Nigeria.
Management
UPDC has 8 man board headed by Mr. Larry E. Ettah. Mr. Hakeem D. Ogunniran is the managing director and chief executive of the company. Mrs. Folasade O. Ogunde is executive director of the company. Non-executive directors are Mr. Abdul A. Bello, Hon. Dr. Ibrahim A. Mohammed, Mr. Olumide A. Oduntan, Mr. Babatunde O. Kasali, Mrs. Halima T. Alao and Mrs. Nana Dawodu.
Financing Structure
The authorized share capital of UPDC Plc in the year under review is 2 billion ordinary shares of 50 kobo each worth N1 billion, while its issued and fully paid up capital stands at 1.1 billion ordinary shares of 50 kobo valued at N550 million as at the end of its financial year ended 31 December, 2009. Shareholders funds of the company was N30.9 billion in 2008, it went down to N29.8 billion at the end of the immediate past financial year as the value depreciated by N1.121 billion which was 4 per cent.
Fixed assets went up by N2.442 billion or 18 per cent to stand at N16.262 billion in 2009 from N13.820 billion which it had at the end of its 2008 financial year. The current assets also went down from N20.369 billion in 2008 to N19.675 billion at the end of 2009 financial year. This is a N694 million or 3.4 per cent rise in its current assets. Total assets less current liabilities drop by N3.589 billion or 9 per cent during the year under review. From the value of N40.245 billion in 2008 it stand at N36.656 billion in 2009.
Profitability
UPDC Plc turnover for the 2009 financial year was N13.331 billion. This is a 0.023 per cent or N3.043 million increase when compared to a turnover of N13.328 billion which it made in 2008. Cost of sales of the company rose from N8.331 billion in 2008 to N8.600 billion in 2009. This is an increase of N269 million or 3.2 per cent. It made N4.731 billion gross profit in the review period of 2009 as against N4.997 billion in 2008, which is N266 million or 5.3 per cent decreased. UPDC spent N1.274 billion on administrative expenses during its 2009 financial year. This shows N464.075 million or 57 per cent increase when compared to N809.615 million which it spent for the same purpose in 2008. Profit before taxation and non-controlling interest went down by N888 million or 24 per cent during the review period from N3.717 billion in 2008 to N2.828 billion in 2009. Profit after taxation and non-controlling interest was shoot-down by N1.254 billion or 34 per cent in 2009 as against N2.435 billion in 2008; it made N3.689 billion in 2009.
Liquidity
Current ratio in 2008 was 0.86:1. Current assets of the company can only take care of 86 per cent of its current liabilities. In 2009, the situation was change. It was 0.77:1. Its current assets can take care of 77 per cent of its current liabilities. The situation presented a decline if its inventory is taking out of the assets. In 2008, it came down to 0.77:1. Its current assets minus stock could only take care of only 77 per cent of its liabilities. In 2009, it went down to 0.65:1. Its current assets minus stock could only provide for take care of only 65 per cent of its liabilities.
Future Outlook
The management board of UPDC promised to take advantage of the emerging opportunities in this period of economic downturn to improve the company’s profitability.
Analysts Opinion
The company’s turnover rose by 0.023 per cent and its gross profit went down by 5.3 per cent. In 2009, cost of sales rose by 3.2 per cent in the year under review. The earning per share of the company went down from 3.35 kobo it recorded in 2008 to stand at 2.21 kobo at the end of the year under review.
