Following a preliminary review of their Management Accounts for the year ended 31st December, 2016, UAC Property Development Company (UPDC) issued a profit warning outlining that they expect to report materially lower earnings.
The reasons for the lower earnings include the recognition of losses on certain projects as well as impairment of investments in a joint venture project occasioned by significant increase in finance costs. The results were further worsened by foreign exchange losses and the negative performance of Golden Tulip Hotel in Festac.
For year ended 31st December, 2015, UPDC’s revenue fell 56% from ₦11.7bn to ₦5.12bn while Net Income for the same period fell 85% from ₦2.48bn to ₦381m.
In the press release signed by the company secretary, Godwin Samuel, UPDC assured that the fundamentals of the business remained strong despite the continued lull in the real estate sector. Adding that they were currently restructuring and re-positioning the company to better deal with the challenges of the times and explore emerging opportunities. Last year, UPDC broke ground of Victoria Mall Plaza III, a commercial development that will include a multi-level car park facility, event centre as well as office and retail elements.