UPDC Plc has released its audited financial results for the year ended December 31, 2024, delivering a strong performance anchored by real estate sales.
The company posted a pre-tax profit of N1.309 billion, representing a 244.51% increase from the N379.9 million reported in 2023.
After-tax profit also soared by 277.83% to N836.9 million, signaling a major turnaround from previous years.
Revenue more than doubled to N11.787 billion, up 120.57% year-on-year from N5.344 billion in 2023.
The growth was largely fueled by UPDC’s core property development and sales business, which accounted for over 87% of total revenue. In contrast, its hospitality segment contributed just 12.4%, highlighting the company’s reliance on real estate to drive performance.
In a notable move, UPDC announced a final dividend of N0.01 per share, amounting to N18.6 million, representing a payout ratio of 22.18%.
Key highlights (2024 vs 2023 FY)
- Revenue: N11.787 billion +120.57% YoY
- Cost of sales: N8.388 billion +143.70% YoY
- Gross profit: N3.399 billion +78.79% YoY
- Selling & distribution expenses: N550 million +395.56% YoY
- Administrative expenses: N1.972 billion +20.46% YoY
- Operating profit: N1.147 billion +103.73% YoY
- Finance income: N560 million +133.78% YoY
- Finance cost: N398 million -5.96% YoY
- Earnings per share: N0.05 +400.00% YoY
- Cash and cash equivalents: N11.505 billion +133.93% YoY
- Total assets: N30.988 billion +57.59% YoY
- Shareholders’ funds: N9.486 billion +7.36% YoY
Cursory Analysis:
UPDC’s financial performance in 2024 can be attributed to strong revenue growth, fueled by strong real estate performance.
According to notes to the financial statements, Grupo Atlanta’s Sale of Property Stock contributed N5.2 billion, while other property stock sales generated N4.081 billion, bringing total real estate revenue to N9.281 billion.
This shows UPDC’s strategic focus on its core business is paying off. The company, a subsidiary of Custodian Investment Plc (51% holding), has streamlined operations around property development and sales, its primary revenue driver.
The hospitality segment remains a drag on performance. It generated N1.464 billion in revenue but recorded a loss before tax of N256 million, denting group profit.
Margins and costs
While the top line soared, rising costs ate into the margins. Gross margin fell to 28.8% (from 35.6% in 2023), indicating pressure from rising project and operational expenses. Selling and distribution expenses rose nearly 400% to N550 million.
Key balance sheet insight:
UPDC seems to be managing its money a bit differently. The amount it is waiting to collect from customers fell by 26% to N1.51 billion, possibly because it is getting paid quicker or giving out less credit.
At the same time, the amount it owes suppliers more than tripled to N17.789 billion. In short, it is paying its bills later.
As a result, total debt, including interest-bearing liabilities, almost doubled to N20.923 billion. With equity at N9.486 billion, the gearing ratio rose to 69% from 54% last year, pointing to greater financial leverage.
That is a bit risky if money is not coming in regularly. But so far, it is working.
UPDC brought in N8.22 billion in cash from its operating activities in 2024, over three times more than the year before. That gives it some cushion to manage its rising obligations.
Share price performance
- UPDC’s stock has soared 76.1% year-to-date, closing at N2.80 per share as of April 17, 2025, making it the 10th best-performing stock on the Nigerian Exchange this year.
- But behind the rally is a tightly held stock. Only 4.89% of UPDC’s shares are available for public trading, well below NGX’s requirement.
- Custodian Investment holds 51%, while UAC of Nigeria owns 42.61%, leaving little room for public investors.
- The company says it is working on a plan to address the free float shortfall and will share details once finalised.