Updc PlcNSENG: UPDC

Q4 unaudited financial statement for the period ended 31 dec 2024

Jan 30, 2025 at 8:50 AM UTC · Issued by Updc Plc

Unaudited Financial Statements

for the year ended

31 December 2024

UPDC PLC RC.321582

UAC House, 1-5 Odunlami Street, Lagos. info@updcplc.com |www.updcplc.com

Directors: Mr. O. Oshin (Chairman), Mr. O. Ojo (CEO), Ms. B. Fadayomi (DD), Mr. F. Aiyesimoju, Mr. K. Osilaja, Mr. A. Falade

TABLE OF CONTENT	PAGE

Performance Highlights

Consolidated and Separate Statement of Profit or Loss and Other Comprehensive Income

Consolidated and Seperate Statement of Financial Position

Consolidated and Seperate Statement of Cash Flows

Consolidated and Seperate Statement of changes in Equity

Notes to Unaudited Consolidated Financial Statements

Shareholding Structure/Free Float Status

UPDC PLC
Financial Statements
For the year ended 31 December, 2024
Performance Highlights
	The Group		The Company
	31-Dec-24	31-Dec-23	%	31-Dec-24	31-Dec-23	%

	N'000	N'000	Change	N'000	N'000	Change
Revenue	11,934,878	5,343,622	123	4,425,531	2,397,109	85
Operating profit	1,677,855	563,596	198	363,430	512,670	(29)
Net finance cost	140,347	(183,661)	176	103,776	(195,992)	153
Profit before taxation	1,818,202	379,935	379	467,206	316,677	48
Taxation	(467,876)	(158,430)	(195)	(22,128)	(24,023)	8
Profit for the year	1,350,326	221,505	510	445,078	292,653	52
Total comprehensive Profit for the year	1,163,547	675,111	72	258,299	746,260	(65)
Total Equity	9,998,970	8,835,423	13	1,543,991	1,285,691	20
Total equity and liabilities	24,627,634	19,664,031	25	10,687,189	12,080,358	(12)
Cash and Cash equivalents	11,469,089	4,918,009	133	4,232,219	4,097,627	3
Basic Profit/(Loss) Per Share (Kobo)	7	-		-	2	(100)
NSE quotation as at December 31 (kobo)	159	99		159	99
Number of shares in issue ('000)	18,559,970	18,559,970		18,559,970	18,559,970
Market capitalisation as at December 31 (N'000)	29,510,352	18,374,370		29,510,352	18,374,370

UPDC PLC

Consolidated and Separate Statement of Profit or Loss and Other Comprehensive Income For the year ended 31 December 2024

		The Group	The Company

		12 months	12 months	12 months	12 months
		ended	ended	ended	ended
		31-Dec-24	31-Dec-23	31-Dec-24	31-Dec-23
	Notes	N'000	N'000	N'000	N'000
Revenue	4(i)	11,934,878	5,343,622	4,425,531	2,397,109
Cost of sales	6	(7,650,519)	(3,442,302)	(3,177,654)	(1,619,274)

Gross profit		4,284,359	1,901,320	1,247,877	777,835
Selling and distribution expenses	6	(303,634)	(111,240)	(145,829)	(86,086)
Administrative expenses	6	(2,508,016)	(1,637,117)	(939,153)	(668,589)
Other operating income	6	205,146	501,063	200,535	617,438
Operating profit		1,677,855	563,596	363,430	512,669
Finance income	7	538,181	239,528	501,610	227,197
Finance cost	7	(397,834)	(423,189)	(397,834)	(423,189)

Net finance cost		140,347	(183,661)	103,776	(195,992)

Profit before Taxation		1,818,202	379,935	467,206	316,676
Taxation	8	(467,876)	(158,430)	(22,128)	(24,023)

Profit for the year		1,350,326	221,505	445,078	292,653

Other comprehensive income:
Net changes in fair value of financial assets	15	(186,779)	453,606	(186,779)	453,606

Total comprehensive Profit for the year		1,163,547	675,111	258,299	746,260

Profit/ (loss) attributable to:
Equity holders of the parent		917,250	253,513	445,078	292,653
Non controlling interest		433,075	(32,008)	-	-

Total profit		1,350,326	221,505	445,078	292,653

Total comprehensive profit/(loss) attributable to:
Equity holders of the parent		730,472	707,119	258,299	746,260
Non controlling interests		433,075	(32,008)	-	-

Total comprehensive profit/(loss)		1,163,547	675,111	258,299	746,260

Earnings per share for profit/(loss) attributable to the equity holders of the group:

Basic Profit/(Loss) Per Share (Kobo)
From continuing operations	12	7		1	-	2
From discontinued operations	12	-	-		-	-

From profit/(loss) for the period		7		1	-	2

Diluted Profit/(Loss) Per Share (Kobo)
From continuing operations	12	7		1	-	2
From discontinued operations	12	-		-	-	-

From profit/(loss) for the period		7		1	-	2

UPDC PLC
Consolidated and Separate Statement of Financial Position
For the year ended 31 December, 2024
			The Group	The Company
			31 December	31 December	31 December	31 December
			2024	2023	2024	2023
		Notes	N'000	N'000	N'000	N'000
Assets
Non-current assets
Property, plant and equipment	11	8,257,742	8,334,497	61,074	69,879
Intangible assets	11	48,090	52,199	5,471	7,886
Investments in joint ventures	13	120,141	120,141	119,337	119,337
Equity instrument at fair value	15	667,067	853,846	667,067	853,846
Investments in subsidiaries	16	-	-	1,617,287	1,616,697

			9,093,040	9,360,683	2,470,236	2,667,645
Current assets
Inventories	17	2,357,314	3,200,157	1,079,067	3,148,590
Trade and other receivables	19	1,560,990	2,037,980	2,758,467	2,019,295
Current tax assets	9	147,201	147,201	147,201	147,201
Cash at bank and in hand	20	11,469,089	4,918,009	4,232,219	4,097,627
			15,534,594	10,303,347	8,216,953	9,412,713
Total assets			24,627,634	19,664,031	10,687,189	12,080,358
Equity
Share capital		9,279,985	9,279,985	9,279,985	9,279,985
Share premium		8,971,551	8,971,551	8,971,551	8,971,551
Fair value reserve of financial assets at FVOCI	100,060	286,839	100,060	286,839
Revenue reserve		(8,663,825)	(9,581,075)	(16,807,605)	(17,252,683)
Equity attributable to equity holders of the	9,687,771	8,957,300	1,543,991	1,285,693
Company

Non controlling interest		311,199	(121,877)	-	-
Total equity			9,998,970	8,835,423	1,543,991	1,285,691
Liabilities
Non-current liabilities
Interest bearing Loans and Borrowings	21	3,022,763	4,702,096	3,022,763	4,702,096
Deferred taxation liabilities		72,537	72,537	72,537	72,537

			3,095,300	4,774,633	3,095,300	4,774,633
Current liabilities
Trade and other payables	22	10,975,469	5,815,764	5,943,050	5,918,170
Current income tax liabilities		473,548	167,485	20,501	31,139
Interest bearing Loans and Borrowings	21	84,346	70,725	84,346	70,725
			11,533,363	6,053,974	6,047,897	6,020,036
Total liabilities		14,628,663	10,828,607	9,143,198	10,794,669
Total equity and liabilities		24,627,634	19,664,031	10,687,189	12,080,358

Wole Oshin	Odunayo Ojo		Grant Akata
Chairman	Chief Executive Officer	Chief Financial Officer
FRC/2013/CIIN/00000003054	FRC/2016/NIESV/00000014322	FRC/2023/PRO/ICAN/001/146924

UPDC PLC

Consolidated and Separate Statement of Cashflows

For the year ended 31 December 2024

		The Group	The Company
		31 December	31 December	31 December	31 December
		2024	2023	2024	2023
	Notes	N'000	N'000	N'000	N'000
Profit before tax		1,818,202	379,933	467,206	316,678
Adjustment for Non cash items:
Depreciation	10	166,166	115,665	29,120	12,615
Amortization of intangible asset	10	4,787	4,787	2,414	3,084
Write Back Provision		-	(120,000)	-	(120,000)
Finance cost	7	397,834	454,644	397,834	423,189
Finance income	7	(538,181)	(239,528)	(501,610)	(227,197)
Assets of disposal of property,Plant and equipment		-
Exchange (gain)/loss	5	(20,132)	(16,380)	(20,132)	(16,380)
Dividend Received		(59,270)	(46,891)	(59,270)	(84,900)
		1,769,406	537,737	315,562	312,595
Changes in working capital:
(Increase)/decrease in inventories		842,843	2,064,914	2,069,523	778,630
Decrease/(increase) in receivables		476,990	(145,500)	(739,171)	(57,603)
Increase/(decrease) in payables		5,043,928	(216,799)	17,584	584,385
Decrease in deferred revenue		-		-

Cash flow (used in)/from operating activities		8,133,167	2,240,353	1,663,498	1,618,007

Tax paid		-	(135,472)
VAT paid		(25,423)	(129,446)
Net Cash inflow from operating activities		8,107,744	1,975,435

Cash flow from investing activities
Purchase of property, plant & equipment	12	(110,022)	(60,003)

Purchase of intangible asset	12	(678)	(11,254)
Proceeds from sale of property, plant and equipment		-	5,506
Investment in subsidiary		-
Dividend received		59,270	46,891
Interest received	7	538,181	239,528
Net cash flow from investing activities		486,751	220,668
Cash flow from financing activities
Repayment of borrowings		(1,665,712)	-
Interest paid		(397,834)	(423,189)
Net cash flow from financing activities		(2,063,546)	(423,189)
Net increase/(decrease) in cash and cash equivalents		6,530,949	1,772,914
Net foreign exchange difference		20,132	(16,380)
Cash and cash equivalents at the beginning of the period	4,918,008	3,161,475
Cash and cash equivalents for the year ended	18	11,469,089	4,918,008

(30,214)
(25,423) (52,944)

1,638,075 1,534,850

(20,359) (53,750)

119,998

103,019
59,27073,773

501,610 227,197

539,931 470,237

(1,665,712)-

(397,834) (423,189)

(2,063,546) (423,189)

114,460 1,581,897

20,132(16,380)

4,097,627 2,532,109

4,232,218 4,097,627

UPDC PLC

Consolidated and Separate Statement of Changes in Equity

For the year ended 31 December 2024

				The Group
			Attributable to owners of the Company
					Fair value
					reserve of
					financial		Non
				Other	assets at		Controlling
	Share Capital	Share Premium Revenue Reserve	Reserves	FVOCI	Total	Interest	Total
	N'000	N'000	N'000	N'000	N'000	N'000	N'000	N'000
Balance at 1 January 2024	9,279,985	8,971,551	(9,581,075)	-	286,839	8,957,300	(121,877)	8,835,423
Profit for the year	-	-	917,250	-	-	917,250	433,075	1,350,326
Net changes in fair value of financial assets	-	-	-	-	(186,779)	(186,779)	-	(186,779)
through other comprehensive income

			-	-	-	-	-	-
Balance at 31 December 2024	9,279,985	8,971,551	(8,663,825)		100,060	9,687,772	311,199	9,998,970
Balance at 1 January 2023	9,279,985	8,971,551	(9,834,588)		(166,767)	8,250,181	(59,583)	8,190,598
Profit for the year			253,513			253,513	(32,008)	221,505
Dividend paid	-	-			-	-	(30,286)	(30,286)
Net changes in fair value of financial assets	-	-	-		453,606		-
through other comprehensive income		453,606	453,606


Gain on reclassification of asset of disposal			-
group held for sale					-		-

Balance at 31 December 2023	9,279,985	8,971,551	(9,581,075)		286,839	8,957,300	(121,877)	8,835,423
Effect of IFRS 9 on retained earnings	-	-	-		-	-	-	-
			The Company
		Attributable to owners of the Company
					Fair value
					reserve of
					financial
				Other	assets at	Total
	Share Capital	Share Premium Revenue Reserve	Reserves	FVOCI
	N'000	N'000	N'000	N'000	N'000	N'000

Balance at 1 January 2024 Profit for the year

Net changes in fair value of financial assets through other comprehensive income

9,279,985	8,971,551	(17,252,683)	-	286,839	1,285,692
-	-	445,078	-	-	445,078
-	-	-	-	(186,779)	(186,779)

Balance at 31 December 2024	9,279,985	8,971,551	(16,807,605)	-	100,060	1,543,991

Balance at 1 January 2023	9,279,985	8,971,551	(17,545,338)	-	(166,767)	539,431
Profit for the year	-	-	292,655	-	-	292,655
Net changes in fair value of financial assets	-	-	-	-	453,606	453,606
through other comprehensive income

Loan from equity holder				-		-
Balance at 31 December 2023	9,279,985	8,971,551	(17,252,683)	-	286,839	1,285,692
Effect of IFRS 9 on retained earnings				-	-	-

The summary of significant accounting policies and notes on pages 5 to 16 are an integral part of these financial statements.

UPDC Plc

Notes to the Consolidated and Separate Financial Statements

For the Year ended 31 December 2024

1. General information

UPDC Plc ('the Company') and its subsidiaries (together 'the Group') is a company incorporated in Nigeria. The Group and the Company have businesses with activities in the following principal sectors: real estate and hotel management. The address of the registered office is 1-5 Odunlami Street, Lagos.

The Company is a public limited company and is listed on the Nigerian Stock Exchange.

Securities Trading Policy
In compliance with Rule 17.15 Disclosure of Dealings in Issuers' Shares, Rulebook of the Exchange 2015 (Issuers Rule) UPDC Plc maintains effective Security Trading Policy which guides Directors, Audit Committee members, employees and all individuals categorized as insiders as to their dealing in the Company's shares. The Policy is regularly reviewed and updated by the Board. The Company has made specific inquiries of all the directors and other insiders and is not aware of any infringement.
Management's Assessment of Internal Controls
The management of UPDC Plc is responsible for establishing and maintaining adequate internal control over financial reporting. UPDC's internal control system was designed to provide reasonable assurance to the Company's management and board of directors regarding the preparation and fair representation of published financial statements.
UPDC Plc's management assessed the effectiveness of the Company's internal controls within the reporting period. Based on our assessment, we believe that as of 31 December 2024, the Group and the Company's internal control is effective. We will continue to work on further strengthening this position.

2. Summary of Material accounting policies

The material accounting policies applied in the preparation of these consolidated and separate financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of preparation

The consolidated and separate financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRS Interpretations Committee (IFRSIC) interpretations applicable to companies reporting under IFRS as issued by International Accounting Standards Board (IASB), Financial Reporting Council of Nigeria (Amendment) Act 2023 and the provisions of Companies and Allied Matters Act, 2020. The consolidated and separate financial statements have been prepared under the historical cost convention except for equity instruments at fair value through other comprehensive income, which are measured at fair value. Hostorical cost is generally based on the fair value of the consideration given in exchange for the assets.

The preparation of consolidated and separate financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity or areas where assumptions and estimates are significant to the consolidated and

(All amounts are in Naira thousands unless otherwise stated)

Changes in accounting policy and disclosures
New and amended standards and interpretations
The Group and the Company applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or after 1 January 2024. The Group and Company has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.
Standards issued but not yet effective
1. The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company's financial statements are disclosed below:
2. Amendments to IAS 1 - Classification of Liabilities as Current or Non-Current - 1 January 2024
3. Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture. Effective date of this amendment is yet to be set by IASB
4. Amendments to IAS 1 Non-current Liabilities with Covenants - 1 January 2024

Amendments to IAS 7 and IFRS 7 Supplier Finance Arrangements - 1 January 2024
Amendments to IFRS16 Lease liability in a sale and leaseback - 1 January 2024
The company has assessed that the above amendments would not have material impact on the financial statements of the company when they become effective

UPDC Plc

Notes to the Consolidated and Separate Financial Statements

For the Year ended 31 December 2024

2.1.3.1 New standards and interpretations effective in the current year

The nature and effect of the changes as a result of adoption of these new accounting standards are described below. The amendments and interpretations apply for the first time in 2023, but do not have an impact on the financial statements of the Company. The Company has not early adopted any standard, interpretation or amendment that have been issued but are not yet effective.

IFRS 17 Insurance Contracts (including the June 2020 and December 2021 Amendments to IFRS 17)

The company has adopted IFRS 17 and the related amendments for the first time in the current year. IFRS 17 establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts and supersedes IFRS 4 Insurance Contracts. The company does not have any contracts that meet the definition of an insurance contract under IFRS 17.

i.i Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements-Disclosure of Accounting Policies

The company has adopted the amendments to IAS 1 for the first time in the current year. The amendments change the requirements in IAS 1 with regard to disclosure of accounting policies. The amendments replace all instances of the term 'significant accounting policies' with 'material accounting policy information'. Accounting policy information is material if, when considered together with other information included in an entity's financial statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. There have been no changes to company's accounting policies in this regards and during the year however, policies relating to the company have been refined to only include material accounting policy information in line with the amendments to the existing standards

Amendments to IAS 12 Income Taxes-Deferred Tax related to Assets and Liabilities arising from a Single Transaction.
The company has adopted the amendments to IAS 12 for the first time in the current year. The amendments introduce a further exception from the initial recognition exemption. Under the amendments, an entity does not apply the initial recognition exemption for transactions that give rise to equal taxable and deductible temporary differences. Depending on the applicable tax law, equal taxable and deductible temporary differences may arise on initial recognition of an asset and liability in a transaction that is not a business combination and affects neither accounting profit nor taxable profit. Following the amendments to IAS 12, an entity is required to recognise the related deferred tax asset and liability, with the recognition of any deferred tax asset being subject to the recoverability criteria in IAS 12.25.
Amendments to IAS 12 Income Taxes- International Tax Reform-Pillar Two Model Rules

The company has adopted the amendments to IAS 12 for the first time in the current year. The IASB amends the scope of IAS 12 to clarify that the Standard applies to income taxes arising from tax law enacted or substantively enacted to implement the Pillar Two model rules published by the OECD, including tax law that implements qualified domestic minimum top-up taxes described in those rules. The amendments introduce a temporary exception to the accounting requirements for deferred taxes in IAS 12, so that an entity would neither recognise nor disclose information about deferred tax assets and liabilities related to Pillar Two income taxes. Following the amendments, the company is required to disclose that it has applied the exception and to disclose separately its current tax expense (income) related to Pillar Two income taxes.

Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors-Definition of Accounting Estimates.
The company has adopted the amendments to IAS 8 for the first time in the current year. The amendments replace the definition of a change in accounting estimates with a definition of accounting estimates. Under the new definition, accounting estimates are monetary amounts in financial statements that are subject to measurement uncertainty. The definition of a change in accounting estimates was deleted.

UPDC PLC

Notes to the Consolidated and Separate Financial Statements - Continued

For the year ended 31 December 2024

2 Summary of significant accounting policies - Continued Consolidation

(a) Subsidiaries

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to,variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

The Group and the Company applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group and the Company. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest's proportionate share of the recognised amounts of acquiree's identifiable net assets.

Acquisition-related costs are expensed as incurred.

If the business combination is achieved in stages, the acquisition date carrying value of the acquirer's previously held equity interest in the acquiree is re-measured to fair value at the acquisition date; any gains or losses arising from such re-measurement are recognised in profit or loss.

Any contingent consideration to be transferred by the Group and the Company is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability is recognised in accordance with IFRS 9 either in profit or loss or as a change to other comprehensive income. Contingent consideration that is classified as equity is not re-measured, and its subsequent settlement is accounted for within equity.

The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If the total of consideration transferred, non-controlling interest recognised and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognised directly in the Profit or Loss.

Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated when necessary amounts reported by subsidiaries have been adjusted to conform with the Group's accounting policies.

(b) Changes in ownership interests in subsidiaries without change of control

Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions - that is, as transactions with the owners in their capacity as owners. The difference between fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.

When the Group ceases to have control any retained interest in the entity is re-measured to its fair value at the date when control is lost, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss.

(d) Associates and joint ventures

Associates are all entities over which the Group and the Company has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting. Under the equity method, the investment is initially recognised at cost, and the carrying amount is increased or decreased to recognise the investor's share of the profit or loss of the investee after the date of acquisition. The Group and the Company's investment in associates includes goodwill identified on acquisition.

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