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Shareholders of UPDC have expressed disappointment with the company’s dividend payment of 1 kobo for the 2024 financial year.
The payment has been met with dissatisfaction among investors, who had likely been expecting a more substantial return on their investment.
The shareholders worry is stermed from the core value of the company which is centered on giving good returns on investments.
The shareholders also queried the company’s projection of delivering its proposed 1.5 thousand housing units when compared to its low working capital, retained negative earnings and administrative expenses increase.
With a liability increase of over 245 per cent, the trio of Mr. Moses Igbrude, Mrs. Oludewa Top and Akin Batula Kola who are leaders of various shareholders groups, said the company has a lot to do considering the opportunity that abounds in the housing shortfall in the domestic economy.
They however, commended the company 5 years growth trajectory, 278 per cent in profit, sound accounting management.
The company in its 2024 financials had delivered a standout performance, recording a 278 per cent surge in profit after tax to N836.9 million, up from N221.5 million in 2023. Revenue more than double to N11.8 billion, while gross profit rose by 79 per cent to N3.4 billion, driven by stronger property sales and improved cost efficiencies.
Operating profit more than doubled to N1.15 billion, and the Group posted a profit before tax of N1.31 billion, up 244 per cent year-on-year. Net finance income of N162 million reflected improved Treasury management and reduced financing cost.
Responding to shareholders concerns, the Chief Executive Officer, Mr. Odunayo Ojo, assured of further better return on shareholders investment, noting that, considering the strategic policy framework of the company in place and it’s ambitious drive, growth in financial indicators will be solidify, even as yield on investments will climb.
He said the company engaging in joint ventures being a deliberate move in growing it’s bottom line and reducing it’s liability, just as it cannot provide everything in its operations, will definitely accelerate the company’s output in the long run.
Speaking on the company’s outlook, the Chairman, Mr. Oluwole Oshin, said, “in 2025, UPDC is poised to ride the wave of Nigeria’s growing real estate demand, fuelled by rapid urbanisation and a national focus on bringing the housing deficit. While the commercial sector faces Headwinds from multinational exits, UPDC will seize emerging opportunities in residential, mixed-use, and affordable housing segments.
According to him, “We will deepen our development management services, expand into high-potential urban locations, and elevate our facilities and hospitality offerings through technology, innovation, and customer-centeric strategies. Strengthening partnerships, enhancing sustainability practices, and delivering superior value across our ecosystem remain our compass as we chart the next chapter of growth”, he added.
