UACN PROPERTY: THE MISSING BOTTOM

Obviously, all through financial year 2015, UACN property Development Co  PLC searched for a bottom to bounce back from but it remained elusive as virtually every stroke headed downwards.
According to the 2015 audited results released recently, it was a tough year indeed, so much so that UPDC almost landed in the loss league.
For starters, core revenue went down by 56.2% to N 5120.9m although the resultant decrease in total income came to 43.1% to N8344.4m mainly because  the lone income good news occurred as other operating income closed 155% up at N575m.
Other income streams virtually ran dry as fair value of investment gain dropped by 83.6% to N252.7m, gain on asset disposal tumbled 111.8% into N57.4m loss and finance income eased 15.8% to N608m.
From the other side of accounting coin, cost of sale going down 63.5% to N3601.6m was the only expense well controlled.
The drop in selling and distribution cost at 51.9% to N107.2m was almost in step with revenue decrease while pulling clearly in the opposite direction were the 0.83% and 0.5% increase in administration and finance costs to N1378.7m and N2670.6m respectively.
It was amidst all these and 40% decrease in share of profit from associate companies to N1787.5m that UPDC had also to make impairment provision of N473m that it didn't in 2014 year.
No wonder it ended 2015 with 98.4% dive in profit before tax to N55.9m which implied that it managed to gain only N0.67 on each N100 income compared to far more healthy N24.1 by 2014 close.
SO:
* Obviously the struggle continues in 2016 to find a bottom.
* And one of the nuts that needs to be cracked committee the rapid worsening of liquidity in 2015 to working capital deficit of N8293.2m from 2014's N4350.2m deficit.

UACN PROPERTY : (Nm)
                         2015.             2014
Total income 8344.4.         14676.2
Core revenue 5120.9.         11700.5
Cost of sale.  3601.6.          9870.8
Fair value gain 252.7.         1541.4
Asset disposal (57.4).          486.9
Other income   575.3.           225.6
Finance income 608.0.         721.8
Ass. Coy gain.  1787.5.       2979.0
Selling cost        107.2.          219.2
Administration  1378.7.       1367.3
Finance cost      2670.6.       2657.3
Impairment.         528.9.           -
Profit before tax    55.9.       3540.5
Profit margin %    0.67.            24.1

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