UPDC Plc crashes annual losses by 91% from N15.883bn
UPDC Plc, an institutional property company listed on the Nigerian Stock Exchange (NSE) has covered a wide ground in reducing its annual loses by 91 per cent from N15.883 billion loss posted in 2019 to N606 million at the end of its operations in 2020.
A snapshot of its financial report that carried the signature of Folakemi Fadahunsi, the company’s Chief Finance Officer (CFO) and filed at the local bourse indicates that the group however recorded decline in its revenue for the period which fell 26 per cent to N1.662 billion from N2.158 billion in the preceding year.
Details of the report include the following:
Revenue: in FY 2020 declined by 23% due to a slowdown in real estate demand in the wake of the Covid-19 pandemic. The Nigerian real estate GDP contracted by -3.6%, equally evident in UPDC’s 2020 performance.
Operating Loss: The implementation of the Group’s cost optimisation strategy continues to yield positive results as cantly (44%) despite lower revenue in FY 2020.operating losses declined significantly.
Net Finance Costs for FY 2020 reduced by nearly 43% to N1.5 billion (vs N2.6 billion in FY 2019). UPDC repaid a large portion of its interest-bearing loans.
Net Cash Position for FY 2020 improved signicantly from N1.3 billion in FY 2019 to N2.9 billion (134% increase)
Overall Performance: UPDC recorded a loss of N0.6 billion vs the N15.9 billion loss recorded in 2019.
Focus on core competency (property development and facility management of real estate assets) while divesting from non-core business lines is expected to drive growth in 2021 through emphasis on the following key strategies:
Project development: Execution of residential real estate projects delivered to time, cost and quality, and targeted at the middle-income market.
Operational Efficiency: UPDC will continue to build on its optimization strategy to ensure an organization-wide approach towards cost savings and operational efficiency.
Strategic Partnership: UPDC will continue to foster strategic relationships and associations across the real estate value chain to maximize returns to its shareholders