Revenue more than doubled year-on-year, climbing 120.57% to N11.787 billion from N5.344 billion in 2023. This surge was driven overwhelmingly by UPDC’s core property business, which accounted for over 87% of total revenue. The hospitality segment, in contrast, contributed just 12.4%, and posted a pre-tax loss of N256 million, underscoring its continued underperformance.
Real Estate Drives Growth
The company’s property sales, particularly the Grupo Atlanta development, contributed significantly to its top line. Grupo Atlanta alone delivered N5.2 billion in revenue, while other property sales contributed an additional N4.081 billion. Combined, these figures highlight UPDC’s sharpened focus on its real estate pipeline—a strategy that appears to be paying dividends.
As a result, UPDC has declared a final dividend of N0.01 per share, amounting to a total payout of N18.6 million, or a 22.18% payout ratio. While modest, the dividend reflects improved financial footing and cautious capital management.
Financial Highlights (FY 2024 vs FY 2023)
- Revenue: N11.787 billion (+120.57%)
- Gross Profit: N3.399 billion (+78.79%)
- Operating Profit: N1.147 billion (+103.73%)
- Pre-tax Profit: N1.309 billion (+244.51%)
- Net Profit: N836.9 million (+277.83%)
- Earnings Per Share: N0.05 (+400%)
- Cash from Operations: N8.22 billion (+216%)
- Total Assets: N30.988 billion (+57.59%)
- Shareholders’ Funds: N9.486 billion (+7.36%)
Cost and Margin Pressures
Despite impressive revenue growth, cost pressures weighed on margins. Gross margin declined to 28.8%, down from 35.6% in 2023, as cost of sales jumped 143.7% to N8.388 billion. Selling and distribution expenses surged nearly 400% to N550 million, while administrative costs rose 20.46% to N1.972 billion.
Finance costs saw a slight decline of 5.96% to N398 million, while finance income rose sharply by 133.78% to N560 million, supporting the bottom line.
Debt and Balance Sheet Developments
UPDC’s balance sheet tells a story of higher leverage. Total debt nearly doubled to N20.923 billion, raising the gearing ratio to 69%, up from 54% in the prior year. The rise in trade payables, which tripled to N17.789 billion, indicates the company is stretching payment cycles—perhaps a sign of cash flow optimization, but also a potential red flag if revenue momentum stalls.
Interestingly, trade receivables dropped by 26% to N1.51 billion, suggesting faster collections or tighter credit terms with customers.
Liquidity and Cash Flow
UPDC generated N8.22 billion in net cash from operating activities—more than three times the amount in 2023. This significant boost in liquidity provides some buffer against the rising debt and operational outflows, indicating improved cash efficiency and stronger working capital management.
Market Reaction and Shareholding Concerns
UPDC’s strong performance has not gone unnoticed in the capital market. As of April 17, 2025, its share price had risen 76.1% year-to-date, closing at N2.80, making it the 10th best-performing stock on the Nigerian Exchange.
However, liquidity constraints remain an issue. Only 4.89% of the company’s shares are available for public trading, well below the NGX’s free float requirement. With Custodian Investment Plc holding 51% and UAC of Nigeria controlling another 42.61%, the limited public float may be inflating the share price and limiting investor access.
The company has acknowledged the shortfall and stated that it is working on a compliance plan, with further details expected in due course.
UPDC’s 2024 financial results reflect a company regaining its footing by doubling down on its core strength—real estate. While margin erosion and rising debt pose future challenges, the surge in cash flow and strategic clarity offer optimism. Investors will now look toward execution, especially as the company works to rebalance its capital structure and address regulatory concerns around its free float.