UPDC declares 23% drop in revenue to N1.7bn

By Kayode Tokede

The revenue generated by UAC Nigeria Property Development Company (UPDC) Plc has reduced by 23 per cent to N1.7 billion in 2020  from N2.2 billion in 2019 as a result of the decline in the rental income and others.

Its financial statements for the year 2020 showed that there was a reduction in the cost of sales to N1.7 billion from N3.0 billion, leaving the organisation with a gross loss of N79.5 million. But this is lower than a gross loss of N878.1 million a year earlier.

During the period, selling and distribution expenses reduced to N61.2 million from N104.9 million, while the administrative expenses rose to N881.5 million from N520.8 million. The other operating income jumped  to N146.6 million from N34.9 million due to the higher income earned through legal fees on disposal of UPDC REIT property, search fees, and sale of scrap items.

The firm recorded an operating loss of N713.0 million better than N1.3 billion recorded in 2019, while the finance income improved by 551.9 percent to N35.2 million from N5.4 million.

The financial results showed that the interests paid by UPDC on loans obtained amounted to N1.5 billion, lower than N2.6 billion of the preceding year, while the net finance cost stood at N1.5 billion in contrast to N2.6 billion in 2019.

With an operating loss before impairment of N3.2 billion versus N3.3 billion in 2019 and a fair value gain (impairment of disposal group held for sale of N2.9 billion, UPDC closed the accounting year with a loss before tax of N262.7 million compared with N16.2 billion pre-tax loss in 2019, while the loss for the year was N605.9 million against N15.9 billion loss a year earlier.

In view of the performance of the company, the board did not recommend payment of dividend to the shareholders.