UACN PROPERTY DEVELOPMENT CO PLC: ALL BUT ONE

All factors but one were against UACN Property Development Company PLC within the period to September 2015. That is according to the figures released recently.
From the figures, the only item that did not help depress UPDC's profitability was direct cost which closed 50.8% down at N3269.8m from N6645.8m
The good news was that this was ahead of 47.7% decrease in main line revenue from N8233.4m to N4306.8m which was itself depressing.
However, more pressure was applied by drops in the expenses far below revenue decrease. Selling and distribution costs declined by 39.7% to N100.5m from N166.7m while administration expenses closed at N788.9m only 18.4% down on N966.8m previously.
The back breaker, of course, was the investment loss of N2555.5m reported as against nothing like that previously.
Thus, in spite of 23.5% increase in income from other sources to N297.6m, additional pressure came from 7.39% widening of the net finance deficit to N1513.8m from N1409.6m hitherto and 2.93% decrease in share of profit made by subsidiaries to N1431.8m from N1475m.
In the end, UPDC closed September with N2192.3m loss compared to N760.6m profit  by September 2014.
It also ended the period with increasing chronic liquidity position as working capital deficit more than doubled to N9043.7m from N4350.2m.
SO:
* It does not look like UPDC can end the year with profit.
* The recent reduction in benchmark interest rates to 11% by the CBN should offer the company some relief though.

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