UPDC reports N1.2bn Q3 loss

UPDC Plc reported N1.18billion loss in the third-quarter (Q3) period ended September 30, 2021, according to its recently released Q3 unaudited financial statements. The group was able to reduce its loss from N3.375billion it reported in same nine months period in 2020.

UPDC is one of Nigeria’s leading real estate development companies, having completed several landmark residential and commercial developments over the past years.

The group grew its nine month revenue to N614.739million in Q3’2021 as against N458.258million in Q3’2020, representing a decrease of 34.1percent. The group’s gross profit at N85.374million in Q3’21 from N207.746million in Q3’20 implies a decrease by 58.9percent.

UPDC Plc, with a free float percentage of 4.99percent as at September 30, 2021 does not meet the free float requirements of the NGX Regulation Limited for companies listed on the Main Board.

Custodian Investment had last year completed acquisition of the 51 percent majority equity stake in UPDC Plc from UAC of Nigeria Plc. Custodian Investment Plc this year made a mandatory takeover offer (MTO) to minority shares of UACN Property Development Company Plc (UPDC) following the approval given by the Securities and Exchange Commission (SEC) on May 18, 2021 for purchase of up to 34,415,332 ordinary shares of 50 kobo shares at 90 kobo per share.

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UPDC Plc said it is working on a plan to resolve this deficiency, adding that this plan will be communicated appropriately as soon as it is implemented.

Companies listed on the Exchange are required to maintain a minimum free float for the set standards under which they are listed in order to ensure that there is an orderly and liquid market for their securities.

For Main Board, NGX Regulation requires a minimum of 20percent of the issued and fully paid up shares or the value of its free float is equal to or above N20 billion.

UPDC group has business with activities in the following principal sectors: real estate and hotel management.

UPDC in notes to the unaudited financial statements for the period ended September 30 said the ongoing Covid-19 pandemic has had wide reaching implications on business activities globally.

“We have however put appropriate strategies in place to manage the impact on our people, operations, customers and finances. We adopted a “People First” approach, ensuring the safety of our staff and customers. Flexible working was adopted to minimize the risk of exposure to the virus, and we were able to establish minimum disruption to business operations while working from home,” it noted.

UPDC said its businesses were stress tested at varying levels. “We have continued to focus on cost optimisation, negotiating discounts on every expenditure and agreeing appropriate payment plans with contractors,” the Group noted further.

“We have reviewed and analysed internal data and conducted market research, and based on these, we have reviewed our products and service offerings to align with the market. We will focus our energies on products and service offerings which offer stable and consistent demand.

“We embraced digital transformation to ensure continued paperless access to our files, seamless communication with our employees and customers through virtual meeting platforms; and continued access to our products and services via the available digital channels,” UPDC Plc further stated.