UACN Property Development Company Plc (UACP) emerges as our stock in focus for this week, following the release of its full year’s 2007 results and the holding of its Annual General Meeting ( AGM), stated Vetiva Capital Management.

Highlights of the result released indicated a 3.5 per cent  increase in the company’s turnover, but a more convincing increase in Profit After Tax (PAT) of 10.8 per cent.

 Digging deeper into the company’s 2007 annual accounts, the increase in PAT was as result of the profit generated from the sale of some of its investments which stood at N537 million, up from N4 million in 2006. Notably, this figure constituted 39 per cent of the company’s PBT.

UACP is currently the only listed company in the Real Estate segment of the Nigerian Stock Exchange, and is owned 46per cent by UACN and 54 per cent by other Nigerian shareholders. At the AGM, the management disclosed that the company has reaches completion stages of some of its major projects:

- In 2007, the company was able to complete the construction of a residential development in Port-Harcourt among other projects,  Before 2008 ending, the company expects to open fully to guests at UPDC Hotels Limited (Novotel Festac Hotel), and - Sequel to the re-opening of the 1004 Estates project site by the Lagos State Government, the company expects the project to be completed and handed over to the buyers in 2008.

The successful completion of these projects in 2008 will surely have an impact on the company’s current and future cash flows.

It would be recalled that the company had recorded an increase in profit after taxation before minority interest of N1,067,789 billion in 2007 as against the N962, 395 million recorded in the previous year.

The company turnover also increased from N5.48 billion recorded in 2006 to N5.58 billion in 2007.
The Board of Directors also approved a dividend of 49 kobo per share for the year under review, representing an increase of 14 kobo over the 35 kobo divided per share paid in the previous year.

The company’s chairman, Lt.-Gen. Mohammed Wushishi, said that despite the seemingly harsh operating environment, the company was able to make significant improvement in its results.

Wushishi added: “It is pertinent to state that the challenges encountered by the company during the year with regard to unjustified title recertification/planning approval demands and prolonged closure of project sites by the Lagos State government had consequential project time and cost overrun and loss of revenue for the business”.

Operationally, he stated that the company maintained its leadership position in the niche segment of the real estate sector of the economy with the full completion of the residential development in Port-Harcourt, among other projects, during the year.

“Some of the major projects at varying stages of completion as at the year end are Imperial Court, Park View Estate, Ikoyi, Trenchard Place, 10 Gerrard Road, Ikoyi, Romay Gardens, Lekki peninsular and Victoria Mail & Plaza, Aboyade Cole Street, Victoria Island, Lagos” he disclosed.