UPDC PLC RESULTS FOR QUARTER 3,2021
UPDC PLC (UPDC) has released its result for the 9 months ended, 30th September 2021. The company made a revenue of NGN614.7 million compared to NGN458.3 million announced a year ago. This revenue was from its real estate business. It, however, made revenue of NGN157.3 million from Festival Hotel which it had put up for sale. The operating loss for the first 9 months of the current year was NGN512 million, a year-over-year increase of 35.2% in operating loss. UPDC could not produce an operating profit due to huge administrative and credit loss expenses. The administrative expenses for the period were 92% of revenue. The company recorded a credit loss expense of NGN342.7 million. Loss After Tax, however, decreased from NGN3.4 billion to NGN1.2 billion.
- Revenue grew
Revenue grew in the 2021 half-year compared to the half-year of 2020. It was purely due to a rise in revenue from property development, sales and management.
- Support from related companies
Huge indebtedness has impacted operating profit negatively. It raised finance from Custodian Investment Plc (Custodian)and UACN Plc in order to pay off its debt. Custodian Investment Plc and UACN Plc together own 94% shareholding in UPDC. The company owed Custodian NGN3.2 billion as at 30th September 2021 and its indebtedness to UACN Plc stood at NGN2.7 billion at the end of the 3rd quarter of 2021.
ABOUT UPDC PLC
UPDC, a subsidiary of Custodian Investment Plc, is a real estate and hotel management company. It operates through its subsidiaries of Manor Gardens, UPDC Facility Management Ltd and Festival Hotel, Conference Centre & Spa. UPDC has decided to sell Festival Hotel. READ THE FULL REPORT ON UPDC PLC HERE.