UAC of Nigeria reports N3.93bn profit in 2020

UAC of Nigeria Plc has reported N3.93billion profit in 2020 audited results for period ended December 31, 2020 from a loss of N9.3billion reported in 2019.

The company’s reported profit before tax of N5.12billion in 2020, 31 per cent decline from N7.46billion reported in 2019.

Revenue for the period rose by three per cent to N81.4billion reported in 2020 from N79.2billion reported in 2019.

The company proposed a dividend per share of N1.20 in 2020 from N0.10 paid to shareholders in 2019.

Commenting on the results and corporate actions, Group Managing Director, UAC of Nigeria, Fola Aiyesimoju, stated: “UAC’s objective is to generate attractive long-term, risk-adjusted returns for our shareholders.

“I am delighted that the Board approved N7.1 billion in capital returns to shareholders via a mix of dividends and REIT units totalling N2.47 per share or a 28.3per cent return at current market values.

“Over the last 12 months, we faced a recession, civil unrest, and significant changes to the way we work due to the COVID-19 pandemic. In spite of these headwinds, we executed our key priorities, implemented initiatives relating to UPDC, strengthened management, and returned the Group to profitability.

“As part of the partial exit from UPDC, we received ¦ 6.6 billion net cash proceeds and 649 million UPDC REIT units valued at N3.6 billion.

“I am excited that we are unlocking value for our shareholders via a special dividend, as well as, the unbundling of UPDC REIT units which, if approved by regulators, shareholders and sanctioned by the court, will see UAC’s shareholders become direct holders of units in UPDC REIT.

“Going forward, our focus remains on creating shareholder value and we continue to prioritise growth, scale, and simplicity to achieve this. We will explore acquisitions as an avenue to accelerate growth.”