UPDC reaffirms its commitment to deliver value to its shareholders


UPDC Plc management reaffirmed its commitment to bringing a smile to its shareholders by giving them value for their investment in the company.

Speaking to Nigerian Exchange (NGX) Limited recently at the Facts Behind the Figures forum with the investment community, UPDC Chief Financial Officer (CFO) Ms Folakemi Fadahunsi said the company intends to start paying dividends to shareholders, although after improving the cash flow.

She explained that the organization’s drop in revenue in the first half of this year was due to the difficult business environment as well as the impact of the business environment on the purchasing power of consumers.

“UPDC’s half-year performance reflects the anticipated impact of internal corporate restructuring on performance. We were able to record a significant reduction in its financing cost over the first half of the year and the full effect of our management’s refinancing initiatives should be fully reflected in the result for the year following the success of our bond redemption in April 2021..

“We will try to improve the cash flow and eventually start paying dividends to shareholders,” she revealed.

For his part, UPDC CEO Mr. Odunayo Ojo said that after the conclusion of the restructuring of the company in the first half of the year, management will focus on its key strategic initiatives, including; real estate promotion, development management and other real estate consultancy services, disposal of low-yield investment properties and existing stocks, sale of the Festival hotel to Festac and asset management.

While explaining that UPDC has established a development history commission for various assets in the retail, commercial residential and hospitality sectors, Mr. Ojo said the company has distributed its stake in UPDC REIT to shareholders in 2020, giving UPDC shareholders a direct stake in UPDC REIT. Plc

Earlier, the host of the virtual program, Mr. Olumide Bolumole, Division Head of Listing Activities at NGX, praised the organization for using the platform to deliver vital information to the market.

He said the market is driven by timely, relevant and accurate information, as interactions with the market are vital for transparency, price discovery and overall stock performance.

While congratulating UPDC, Mr. Bolumole welcomed the important milestone taken by UPDC with the successful conclusion of the 16 billion naira rights issue last year, the proceeds of which were used to strengthen the base. of capital and position the company for growth.

At the exchange, we remain committed to helping issuers derive great value from their interaction with the market.

“By positioning ourselves as the African stock exchange of choice, we continue to implement policies aimed at strengthening the corporate governance of our listed companies and providing products aligned with the demands of investors in a fair and orderly market”, did he declare.

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