UPDC Plc, a prominent property investment company in Nigeria, has reported a profit for the first time in eight years, according to data compiled by housingtv.
The company’s latest financial statement reveals a profit of N10.9 million for the first six months of 2024, a significant improvement from the N231.2 million loss recorded in the same period last year.
The company’s operating profit also saw a positive shift, standing at N70.7 million compared to a loss of N1.58 million previously. Additionally, tax expenses declined to N60.7 million from N89.4 million. UPDC’s profit before tax surged to N71.6 million in H1 2024, up from a loss of N141.8 million in the first half of 2023.
Despite these gains, the firm experienced an increase in both selling and distribution expenses, which rose to N97.1 million from N37.9 million, and administrative expenses, which grew to N1.1 billion from N810.8 million.
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Revenue for UPDC increased by 20.5 percent year-on-year, reaching N2.59 billion from N2.15 billion in the same period last year. The breakdown of revenue shows N1.4 billion generated from selling property stock, N597.6 million from UPDC Hotel Limited, and N417.1 million from UPDC Facility Management Limited’s surcharge income.
However, the cost of sales claimed 79.9 percent of total revenue, impacting profitability. The cost of sales increased by 5.9 percent to N1.44 billion from N1.37 billion. Additionally, the company reported a gain in net finance cost, which stood at N865 million from a loss of N140.3 million in the same period last year.
UPDC’s cash and cash equivalents during the period amounted to N4.5 billion, marking a 36.4 percent decline from N3.3 billion. Cash from operating activities decreased slightly to N533.3 million from N541.2 million, while net cash from financing activities was a negative N1.18 billion compared to N209.9 million previously. Conversely, net cash used in investing activities was a positive N232.8 million, an improvement from a negative N52.6 million.
With a market capitalization of N25.8 billion, UPDC Plc continues to focus on the acquisition, development, sales, and management of high-quality serviced commercial and residential properties in the luxury, premium, and classic segments of the real estate market.