UACN Property Development : UPDC PLC- QUARTER 5 - FINANCIAL STATEMENT FOR 2022

UPDC Plc

Financial Statements

31 December 2022

Performance Highlights
		The Group			The Company
		2022	2021	%		2022	2021	%
		N'000	N'000	Change		N'000	N'000		Change
Revenue		5,896,957	825,404	614		3,870,963	540,563	616
Operating profit/(loss)		707,844	(899,215)	179		708,959	(7,784,883)	109
Net finance cost		(377,246)	(718,053)	47		(386,002)	(718,778)	46
Profit/ (loss) before taxation		330,598	(1,617,268)	120		322,957	(8,503,661)	104
Taxation		(130,066)	(142,969)	9		(26,251)	(75,717)	65
Loss from discontinued operations		-	(116,286)	100		-	-
Profit/(loss) for the year		200,532	(1,876,523)	111		296,706	(8,579,378)	103
Total comprehensive profit/(loss) for the year		7,082	(2,016,607)	100		103,256	(8,719,462)	101
Total Equity		8,396,636	8,094,182	4		642,451	930,615	(31)
Total equity and liabilities		19,428,404	19,594,765	(1)		10,852,736	10,965,013	(1)
Cash and Cash equivalents		3,161,475	1,878,320	68		2,532,109	1,329,891	90
Basic Profit/(Loss) Per Share (Kobo)		1	(10)	111		2	(46)	103
NSE quotation as at December 31 (kobo)		91	119			91	119
Number of shares in issue ('000)		18,559,970	18,559,970			18,559,970	18,559,970
Market capitalisation as at December 31 (N'000)		16,889,573	22,086,364			16,889,573	22,086,364

1

Corporate Information

DIRECTORS

Mr. Wole Oshin [Chairman]

Mr. Odunayo Ojo [Chief Executive Officer]

Ms. Bidemi Fadayomi [Development Director]

Mr. Folasope Aiyesimoju

Mr. Oyekunle Osilaja

Mr. Adeniyi Falade

REGISTRATION NO

RC No. 321582

REGISTERED OFFICE

UAC House

1-5 Odunlami Street

Marina,

Lagos.

Phone: [phone]

Email: [e-mail]

Website: www.updcplc.com

SUBSIDIARIES

UPDC Facility Management Limited

UPDC Hotel Limited

Deep Horizon Investment Limited

Manor Gardens Development Limited

AUDITORS

Deloitte & Touche

Civic Towers, Plot GA1,

Ozumba Mbadiwe Avenue, Victoria Island, Lagos State

REGISTRARS

Africa Prudential Plc

220B, PalmGrove,

Ikorodu Road,

Lagos.

BANKERS

First Bank of Nigeria Limited

United Bank for Africa Plc

Zenith Bank Plc

Guaranty Trust Bank Plc

First City Monument Bank Plc

Access Bank Plc

Fidelity Bank Plc

FSDH Merchant Bank Limited

Polaris bank Limited

Stanbic IBTC Bank Plc

Union Bank of Nigeria Plc

Coronation Merchant Bank Limited

FBN Quest Merchant Bank Limited

2

Directors' Report

The Directors have the pleasure of submitting their annual report, together with the audited financial Statements for the year ended 31st December 2022.

Principal Activities

Founded in 1997, UPDC PLC is a seasoned development company in Nigeria with an established record in developing, selling, and managing real estate assets across Nigeria.

Known for the quality of its products, UPDC is the first real estate company to have been listed on the Nigerian stock exchange, and offers the most diversified portfolio of residential, commercial, retail, and hospitality assets.

Our Vision

To become the leading lifestyle real estate company of choice in Nigeria by delivering world-class properties and services tailored to the needs of the Nigerian market.

Our Mission

To build and manage:

1. Distinctive lifestyle developments o To time, cost and quality
   o Customers for life: from development stage to sales to asset and facility management o Shareholder value

Operating Results
	Group	Company
	2022	2021	2022	2021
	N'000	N'000	N'000	N'000
Revenue	5,896,957	825,404	3,870,963	540,563
Gross profit/(loss)	1,607,724	140,278	840,448	(64,355)
Operating expenses	(1,351,746)	(908,523)	(677,104)	(813,195)
Operating Income/(loss)	707,844	(899,215)	708,959	(7,784,883)
Net finance cost	(377,246)	(718,053)	(386,002)	(718,778)
Profit/ (loss) before taxation	330,598	(1,617,268)	322,957	(8,503,661)
Taxation	(130,066)	(142,969)	(26,251)	(75,717)
Profit/(loss) from continuing operations	200,532	(1,760,237)	296,706	(8,579,378)
Loss from discontinued operations	-	(116,286)	-	-
Profit/(loss) for the year	200,532	(1,876,523)	296,706	(8,579,378)
Fair value loss on financial assets	(193,450)	(140,084)	(193,450)	(140,084)
Total comprehensive profit/(loss) for the year	7,082	(2,016,607)	103,256	(8,719,462)

Dividend

The Directors do not recommend the declaration of any dividend to the shareholders in view of the performance of the Company.

Directors' Interests in Shares

Directors' interests in the issued share capital of the Company as recorded in the Register of Members and/or as notified by the Directors in compliance with Sections 301 and 302 of the Companies and Allied Matters Act 2020 and the Listing Requirements of the Nigerian Stock Exchange were as follows:

	31 December 2022	31 December 2021
	Direct	Indirect	Direct	Indirect
Mr Wole Oshin	-	9,466,708,960		9,466,708,960
Mr Odunayo Ojo	-	-	-	-
Ms Bidemi Fadayomi	-	-	-	-
Mr Folasope Aiyesimoju	-	7,953,143,897	-	7,953,143,897
Mr Oyekunle Osilaja	-	-	-	-
Mr Adeniyi Falade	-	-	-	-

Directors' Interests in Contracts

In line with Section 303 of the Companies & Allied Matters Act 2020, no director had interest in any contract with the Company during the year.

Shareholders with Substantial Interest of 5% and Above

The issued and fully paid-up share capital of the Company is N9,279,984,968 divided into 18,559,969,936 ordinary shares of 50 kobo each. The following table shows the shareholders with substantial interest above 5%:

S/N	FULL NAME		ADDRESS	HOLDINGS	%
1	Custodian	Investment	Custodian House, 16A,	9,466,708,960	51.00
Plc		Commercial Avenue, Sabo, Yaba

3

2

UAC of Nigeria Plc

UAC House, 1 - 5, Odunlami Street, Marina, Lagos.

7,953,143,897

42.85

Share Capital History

YEAR	BONUS ISSUE	UNITS	VALUE (N)
1999	Starting Capital	1,000,000,000	500,000,000
2004	1 for 10 bonus issue	1,1000,000,000	550,000,000
2005 to 2009	None	1,1000,000,000	550,000,000
2010	1 for 4 bonus issue	1,375,000,000	687,500,000
2011 to 2012	None	1,375,000,000	687,500,000
2013	1 for 4 bonus issue	1,718,749,995	859,374,997.50
2014 to 2016	None	1,718,749,995	859,374,997.50
2017	1 for 1 Rights Issue	2,598,395,794	1,299,197,897
2018	None	2,598,395,794	1,299,197,897
2019	None	2,598,395,794	1,299,197,897
2020	43 for 7 Rights Issue	18,559,969,936	9,279,984,968
2021	None	18,559,969,936	9,279,984,968
2022	None	18,559,969,936	9,279,984,968

Analysis of Shareholding

	Shareholders Number	Shareholding Number	Shareholding %
Directors and Connected Persons	NIL	NIL	NIL
Custodian Investment Plc	1	9,466,708,960	51.01
UAC of Nig Plc	1	7,953,143,897	42.85
Individuals	27,342	462,297,176	2.49
Other Corporate bodies	1,090	677,819,903	3.65
Total	28,434	18,559,969,936	100

Our People

At UPDC we are committed to ensuring that our employees reflect our core values of integrity, responsibility, service, excellence, customer focus and shareholder value creation. Our corporate culture fosters open communication, collaboration, diversity, and forward thinking among all employees to encourage the exchange of views, ideas and knowledge which leads to innovation

Diversity and Inclusion Strategies

Here at UPDC Plc, there is no form of discriminations and as such, recruitment, training, and career development are strictly based on character, competence, and merit. To achieve hiring the best individuals, our recruitment processes are tailored to harness fair competition, while identifying the most suitable candidates in each required field, who will contribute immensely to the growth of our company.

Health, Safety and Employee Welfare

Health and safety is highly fundamental and to this end, UPDC has provided conducive and safe working environment at locations where the employees are located, including; the corporate head office, estates, and project sites. There is access to first aid amenities at these locations to be used in line with safety regulations.

Employees are duly covered under Health Insurance schemes. Each employee's HMO cover includes a spouse and up to four children. Through this arrangement, employees and their families can access healthcare from a range of well-equipped healthcare providers.

HIV/AIDS

UPDC promotes occupational health by providing HIV/AIDS awareness training. We do not discriminate against any employee based on his/her HIV status. The HIV status and medical records of individuals are kept strictly confidential.

Employee Recognition and Incentive Scheme

Management openly acknowledges and recognizes employees who have performed exceptionally well in the course of each year. Gift vouchers are also often awarded for individual performances. There are also incentive initiatives that are tailored to foster engagement and encourage team performance. All these are aimed at boosting employee morale which in turn impacts productivity and sales for the company.

Employee Engagement and Team Communication

UPDC recognizes that the employees are an integral part of the business and to this end, certain events occur which fosters morale boost. Employees are fully involved in strategy formulations and executions for their respective business units. This aims at encouraging business plan ownership and commitment at all levels. Team Retreats, Business Review Meetings, Strategy Review Sessions, Project Integration Meetings and Town Hall Meetings are held for cross-exchange of ideas and crucial business information dissemination. In recent times, we have embraced the use of technology to have more hybrid forms of meeting.

Learning and Development

Employees are encouraged in their quest for personal and professional development. We adopt a training methodology that fosters free exchange of knowledge internally. Self-development is also encouraged and monitored, while the company organises training programs in conjunction with external facilitators for career advancement.

4