H1’21: UPDC Declares N603.3m Loss as Revenue Drops to N316.1m
By Dipo Olowookere
On Tuesday, UPDC Plc, a member of Custodian Investment Plc, released its financial results for the first six months of 2021 but the numbers were not impressive. Both the top line and the bottom line witnessed declines, though the firm showed prospects of bouncing back to profitability.
In the period under review, the company said its revenue depreciated to N316.1 million from N346.5 million in the same period of last year.
The revenue was solely from its core business, property development, sales and management, with revenue from contracts with customers accounting for N287.5 million versus N291.9 million in H1 2021, while rental income and management fee on rent contributed N28.6 million as against N54.7 million in the comparative period of 2020.
The cost of sales shot up to N260.5 million from N245.0 million, while the selling and distribution costs gulped N29.7 million versus N33.0 million a year ago, with the administrative expenses taking N423.9 million compared with N327.6 million in the first six months of last year.
In the results, the company said its gross profit depleted to N55.5 million from N101.5 million, while it recorded an operating loss of N88.7 million compared with an operating loss of N222.0 million last year.
However, it was able to grow its finance income to N17.9 million from N2.3 million, while lower interest on borrowings helped to moderate its finance costs to N440.6 million from N1.1 billion in H1 2020, leaving the firm with negative net finance costs of N422.8 million versus the negative net finance cost of N1.0 billion in the same period last year.
According to the financial statements, UPDC posted a loss before tax of N511.5 million versus a pre-tax loss of N2.8 billion in the first half of 2020 and a loss after tax of N603.3 million compared with the post-tax loss of N2.9 billion in half-year of 2020.