University Press reports 55% drop in profit, declares N0.05 dividend
By Kayode Tokede
University Press Plc has reported 55 percent drop in its full year ended March 31, 2021 audited result and accounts and proposed a dividend of N0.05.
The company profit closed 2021 financial year at N57.11million from N127.2million reported in 2020 as profit before tax also dropped by 57.7 per cent to N75.29million in 2021 from N178.06million in 2020.
Our correspondent gathered that 31.3 percent and 42.04 percent drop in revenue and finance income impacted on profits reported by University Press in 2021 financial year.
The printing press company reported N1.42billion revenue in 2021 from N2.07billion in 2020 while finance income moved from N25.84million to N14.97million in 2020.
The directors of University press recommend a dividend of 5k (2020 : 15k) per ordinary share of 50 kobo each amounting to N21,570,475 to be paid to shareholders subject to approval at the Annual General Meeting (AGM).
The proposed dividend is subject to withholding tax and is payable on 23rd September 2021 to shareholders whose names appear on the Register of Members as at close of business on Tuesday 31st August 2021.
From balance sheet position, the company reported net assets of N2.66billion in 2021 from N2.67billion in 2020.
An independent auditor report by PKF, stated that, “Revenue is a key performance indicators on which the among others: company and its Directors are assessed. There could be pressures on margin and competition which could lead to recognising revenue in the wrong financial period.
“The carrying amount of inventories at year end was N1.4 billion representing 63percent of the total current assets.
“An impairment allowance of N24.67 million has been recorded during the year to reduce the carrying value of the inventories to their estimated realizable values.
“The company’s inventory is prone to obsolescence as a result of changes in government curriculum, technological changes, passage of time among others.
“There is possibility that obsolete and slow moving inventories may not be adequately written down and this may lead to overstatement of inventory.”
The Company was incorporated in Nigeria on the August 14, 1978 as a Public Limited Liability company listed on the Nigerian Exchange Group which commenced operations in Nigeria as a branch of Oxford University Press in 1949.
The Company’s principal activity is publishing, sales and distribution of educational books and materials. The Company will carry on fulfilling its objectives as stated in its memorandum of association.
