Business
UACN Property reports N15.883bn loss for FY2019 as parent company plans divestment
UACN Property Development Company Plc has declared a loss of N15.883 billion for Full Year 2019 compared to a loss of N15.057 billion recorded in the corresponding period of 2018.
The full details of the performance of the real estate firm are contained in its Audited Financial Statements for the Year Ended 31 December 2019, posted on the Nigerian Stock Exchange (NSE) website Friday evening.
Revenue shrank by 6%, moving from N2.303 billion at FY2018 to N2.158 billion in the review period.
Loss Before Taxation expanded from N13.244 billion to N16.195 billion, signalling a 22% increase.
Loss for the Year leapt 5% from N15.057 billion to N15.883 billion.
Similarly, Loss Per Share grew by from N5.79 to N6.12, rising by 6% in between the periods.
Total Equity crumbled to N2.172 billion from N18.055 billion at FY2018, translating to an 88% plunge.
Meanwhile, UAC of Nigeria Plc – the parent company of the loss-making firm – has announced plans to sell off its majority stake in UACN Property on the ground of the latter’s inability to deliver shareholder value, having posted losses four years a row.
UACN Property faces a double whammy of financial loss as well as loss of support of its parent company, which currently owns 93.9% of its shares should the divestment succeed as planned by July.
But exorbitant interest rates have hurt margins and it is yet to recover following a recession four years ago before the outbreak of coronavirus pandemic, raising fears it might go under if the current loss-making trend persists a little further.
UACN Property closed trade on the floor of the NSE today at N0.92 per share, shedding 8%.
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