UPDC hits first profit of N120m in 7 years

After a short spell of business downturn during which it struggled and gasped for breath, UAC Property Development Company (UPDC) has recorded its first Q1 profit in seven years.

The real estate company recorded a profit of N120.8 million in the first quarter of 2022, a 130.27 percent growth from a loss of N399.1 recorded in the first quarter of 2021.

The Q1 profit was a result of a whopping 978.45 percent growth in revenue in the first quarter of 2022 to N780.8 million from N72.4 million in the first quarter of 2021.

A breakdown of the revenue by category showed that the company generated N143 million from the sale of property stock, N139.4 million from project/asset management fees, and N420.7 million from Deep Horizon Investment Limited’s sale of property stock, and N77.7 million from the UPDC facility management limited surcharge income.

The firm’s profit margin, which measures the degree to which a company or a business activity makes money, essentially by dividing income by revenues, stood at 15.47 percent.

Read also: UACN says associate companies’ loss impacts full year profitability

The company’s cost of sales in the first three months of 2022 amounted to N486.5 million, an 805.96 percent surge from N53.7 million recorded in the first three months of 2021.

Administrative expenses recorded by the company in Q1 2022 totaled N130 million, a 45.54 percent decline from N238.7 million recorded in Q1 2021.

Similarly, its selling and distribution expenses declined by 35.11 percent to N14.6 million in Q1 2022 from N22.5 million in Q1 2021.

The real estate company also recorded a decline of 34.76 percent in finance costs to N129.7 million in March 2022 from N198.8 million in March 2021.

Its total shareholder’s equity grew to N8.03 billion in the first quarter of 2022, a 0.09 percent increase from N8.02 billion in the corresponding period of 2021.

UPDC cash and cash equivalent during the period under review amounted to N2.55 billion, an 8.69 percent steep decline from N2.80 billion reported in the first quarter of 2021.

Cash from operating activities amounted to N662.5 million, while its cash flow used in investing activities amounted to N11.6 million in the first quarter of 2022.

“Going into the future, besides estate development, we will also be focusing on development management in order to render services to other players in the industry, and to guide people who have projects to do but lack the appropriate expertise,” Odunayo Ojo, the company’s CEO, revealed at an interactive session with newsmen in Lagos recently.

UPDC Plc formerly UACN Property Development Plc is a property investment company in Nigeria that buys, develops, sells, leases, and manages commercial and residential accommodation and retail space.

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