Updc PlcNSENG: UPDC

Quarter 3 financial statement for 2024

Oct 24, 2024 at 11:29 AM UTC · MarketScreener

Unaudited Financial Statements

for the period ended

30 September 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 period ended 30 September, 2024
Performance Highlights
	The Group		The Company
	30-Sep-24	30-Sep-23	%	30-Sep-24	30-Sep-23	%
	N'000	N'000	Change	N'000	N'000	Change
Revenue	5,025,183	3,778,192	33	2,809,100	1,212,427	132
Operating profit	608,042	200,845	203	174,611	121,079	44
Net finance cost	19,827	(197,113)	110	38,577	(197,113)	120
Profit before taxation	627,869	3,732	16,726	213,188	(76,034)	380
Taxation	(220,632)	(109,012)	(102)	(71,702)	(3,182)	(2,154)
Profit /(Loss) for the period	407,237	(105,280)	487	141,486	(79,216)	279
Total comprehensive Profit/(loss) for the period	247,141	(5,220)	4,834	(18,610)	20,845	(189)
Total Equity	9,082,564	8,835,423	3	1,267,082	1,285,691	(1)
Total equity and liabilities	21,762,250	19,664,030	11	14,576,797	12,080,357	21
Cash and Cash equivalents	5,539,449	4,918,009	13	4,673,387	4,097,627	14
Basic Profit/(Loss) Per Share (Kobo)	2	-		-	(0)	100
NSE quotation as at September 31 (kobo)	176	99		176	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)	32,665,547	18,374,370		32,665,547	18,374,370

UPDC PLC

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

For the period ended 30 September 2024

			The Group			The Company
		3 months	9 months	3 months	9 months	3 months	9 months		3 months	9 months
		ended	ended	ended	ended	ended	ended		ended	ended
		30-Sep-24	30-Sep-24	30-Sep-23	30-Sep-23	30-Sep-24	30-Sep-24	30-Sep-23	30-Sep-23
	Notes	N'000	N'000	N'000	N'000	N'000	N'000		N'000	N'000
Revenue	4(i)	2,426,681	5,025,183	1,628,243	3,778,192	1,318,377	2,809,100		960,512	1,212,427
Cost of sales	6	(1,348,518)	(2,788,880)	(1,139,289)	(2,504,703)	(919,024)	(2,067,448)		(763,199)	(945,848)
Gross profit		1,078,163	2,236,303	488,954	1,273,489	399,353	741,652		197,313	266,579
Selling and distribution expenses	6	(65,175)	(162,240)	(15,029)	(52,912)	(41,494)	(96,809)		(12,672)	(43,576)
Administrative expenses	6	(546,810)	(1,620,016)	(371,770)	(1,182,530)	(233,584)	(624,227)		(169,179)	(472,532)
Other operating income	6	71,120	153,995	100,279	162,798	71,120	153,995		212,105	370,607
Operating profit		537,298	608,042	202,434	200,845	195,395	174,611		227,567	121,078
Finance income	7	117,453	311,411	49,808	119,409	117,453	311,411		49,808	119,409
Finance cost	7	(98,491)	(291,584)	(106,667)	(316,522)	(79,741)	(272,834)		(106,667)	(316,522)
Net finance cost		18,962	19,827	(56,859)	(197,113)	37,712	38,577		(56,859)	(197,113)
Profit before taxation		556,260	627,869	145,575	3,732	233,107	213,188		170,709	(76,035)
Taxation	8	(159,899)	(220,632)	(19,650)	(109,012)	(64,248)	(71,702)		(1,130)	(3,182)
Profit /(Loss) for the period		396,361	407,237	125,925	(105,280)	168,859	141,486		169,579	(79,216)
Items not to be subsequently recycled to profit or loss:
Net changes in fair value of financial assets	15	(33,353)	(160,096)	20,012	100,060	(33,353)	(160,096)		80,048	100,060

Total comprehensive Profit/(loss) for the		363,008	247,141	145,937	(5,220)	135,505	(18,610)		249,627	20,845
period

Profit/ (loss) attributable to:
Equity holders of the parent		326,039	263,495	115,736	(126,040)	135,505	141,486		169,579	(79,216)
Non controlling interest		70,322	143,742	10,189	20,760	-	-		-	-
Total profit (loss)		396,361	407,237	125,925	(105,280)	135,505	141,486		169,579	(79,216)
Total comprehensive profit/(loss) attributable to:
Equity holders of the parent		292,686	103,399	135,748	(25,980)	135,505	(18,610)		249,627	20,845
Non controlling interests		70,322	143,742	10,189	20,760	-	-		-	-
Total comprehensive profit/(loss)		363,008	247,141	145,937	(5,220)	135,505	(18,610)		249,627	20,845

Earnings per share for profit/(loss) attributable
to the equity holders of the group:
Basic Profit/(Loss) Per Share (Kobo)
From continuing operations	12	-	2	-	(1)	(1)	-		-	(0)
From discontinued operations	12	-	-	-	-	-	-		-	-
From profit/(loss) for the period		-	2	-	(1)	(1)	-		-	(0)
Diluted Profit/(Loss) Per Share (Kobo)
From continuing operations	12	-	2	-	(1)	(1)	-		-	(0)
From discontinued operations	12	-	-	-	-	-	-		-	-
From profit/(loss) for the period		-	2	-	(1)	(1)	-		-	(0)

The notes on pages 5 to 16 are an integral part of these consolidated financial statements.

UPDC PLC

Consolidated and Separate Statement of Financial Position

As at 30 September, 2024

		The Group	The Company
		30 September	31 December		30 September	31 December
		2024	2023		2024	2023
	Notes	N'000	N'000		N'000	N'000
Assets
Non-current assets
Property, plant and equipment	11	8,328,540	8,334,497		64,324	69,879
Intangible assets	11	49,286	52,199		6,074	7,886
Investments in joint ventures	13	120,141	120,141		119,337	119,337
Equity instrument at fair value	15	693,750	853,846		693,750	853,846
Investments in subsidiaries	16	-	-	-	4,476,697	1,616,697
		9,191,718	9,360,683		5,360,182	2,667,645
Current assets
Inventories	17	4,928,069	3,200,157		1,939,952	3,148,590
Trade and other receivables	19	1,977,222	2,037,980		2,477,488	2,019,295
Current tax assets	9	125,791	147,201		125,791	147,200
Cash at bank and in hand	20	5,539,449	4,918,009		4,673,387	4,097,627
		12,570,532	10,303,346		9,216,616	9,412,712
Total assets		21,762,250	19,664,030		14,576,797	12,080,357
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		126,743	286,839		126,743	286,839
Revenue reserve		(9,317,580)	(9,581,075)		(17,111,197)	(17,252,683)
Equity attributable to equity holders of the Company	9,060,699	8,957,300		1,267,082	1,285,693
Non controlling interest		21,865	(121,877)		-	-
Total equity		9,082,564	8,835,423		1,267,082	1,285,691
Liabilities
Non-current liabilities
Interest bearing Loans and Borrowings	21	3,526,573	4,702,096		3,526,573	4,702,096
Deferred taxation liabilities		72,537	72,537		72,537	72,537
		3,599,110	4,774,633		3,599,110	4,774,633
Current liabilities
Trade and other payables	22	8,804,021	5,815,764		9,512,527	5,918,170
Current income tax liabilities		148,552	167,485		70,076	31,139
Interest bearing Loans and Borrowings	21	128,002	70,725		128,002	70,725
		9,080,575	6,053,974		9,710,605	6,020,036
Total liabilities		12,679,685	10,828,607		13,309,716	10,794,669
Total equity and liabilities		21,762,250	19,664,030		14,576,797	12,080,357

The unaudited financial statements were approved by the board of directors on 30 September 2024 and signed on its behalf by:

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 period ended 30 September 2024

		The Group		The Company
		30 September	30 September		30 September	30 September
		2024	2023		2024	2023
	Notes	N'000	N'000		N'000	N'000
Profit /(Loss) before tax		627,869	3,732		213,188	(76,035)
Adjustment for Non cash items:
Depreciation	10	166,166	84,814		(3,631)	8,710
Amortization of intangible asset	10	4,787	2,976		(402)	2,359
Finance cost	7	291,584	316,522		272,834	316,522
Finance income	7	(311,411)	(119,409)		(311,411)	(119,409)
Exchange (gain)/loss	5	(20,409)	(8,986)		(20,409)	(8,986)
Investment Income		(26,416)	(23,210)		(26,416)	(30,935)
		732,170	256,439		123,753	92,226
Changes in working capital:
(Increase)/decrease in inventories		(1,727,912)	1,750,004		1,208,638	472,685
Decrease/(increase) in receivables		82,167	(2,741)		(436,782)	(22,190)
Increase/(decrease) in payables		2,604,704	(229,366)		541,978	823,694
Decrease in deferred revenue		-			-

Cash flow (used in)/from operating activities		1,691,128	1,774,337		1,437,587	1,366,415
Tax paid		-	(110,121)		-	(4,811)
VAT paid		(22,177)	(49,649)		(22,177)	(31,335)
Net Cash inflow from operating activities		1,668,951	1,614,567		1,415,410	1,330,270
Cash flow from investing activities
Purchase of property, plant & equipment	11	-	(134,536)		-	(10,135)
Purchase of intangible asset	10	(1,875)	(13,485)		-

Dividend received		26,416	23,210	26,416	30,935
Interest received	7	311,411	119,409	311,411	119,409

Net cash flow from investing activities		335,952	(5,402)

Cash flow from financing activities
Repayment of borrowings		(1,118,247)	-
Interest paid		-	(209,855)
Net cash flow from financing activities		(1,118,247)	(209,855)

Net increase/(decrease) in cash and cash equivalents		886,657	1,399,311
Net foreign exchange difference		20,409	8,897
Cash and cash equivalents at the beginning of the period		4,632,383	3,161,475

Cash and cash equivalents at the end of the period	18	5,539,449	4,569,682

337,827 140,209

(1,118,247)-

(209,855)
(1,118,247) (209,855)

634,990 1,260,623

20,4098,986

4,017,989 2,532,109

4,673,388 3,801,718

UPDC PLC

Consolidated and Separate Statement of Changes in Equity

For the period ended 30 September 2024

				The Group
			Attributable to owners of the Company
					Fair value
					reserve of
					financial		Non
			Revenue	Other	assets at		Controlling
	Share Capital	Share Premium	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 period	-	-	263,495	-	-	263,495	143,742	407,237
Net changes in fair value of financial assets	-	-	-	-	(160,096)	(160,096)	-	(160,096)
through other comprehensive income

			-	-	-	-	-	-
Balance at 30 September 2024	9,279,985	8,971,551	(9,317,580)		126,743	9,060,700	21,865	9,082,564
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 30 September 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
			Revenue	Other	assets at	Total
	Share Capital Share Premium	Reserve	Reserves	FVOCI
	N'000	N'000	N'000	N'000	N'000	N'000

Balance at 1 January 2024 Profit for the period

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
-	-	141,486	-	-	141,486
-	-	-	-	(160,096)	(160,096)

Balance at 30 September 2024	9,279,985	8,971,551	(17,111,197)	-	126,743	1,267,082

Balance at 1 January 2023	9,279,985	8,971,551	(17,545,338)	-	(166,767)	539,431
Profit for the Period	-	-	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 30 September 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 period ended 30 September 2024

General information
UPDC Plc ('the Company') and its subsidiaries (together 'the Group') is a company incorporated in Nigeria. The Group has businesses with activities in real estate and hotel management. The registered office address is 1-5 Odunlami Street, Lagos.
The Company is a public limited company and is listed on the Nigerian Exchange Group.
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

UPDC's management assessed the effectiveness of the Company's internal controls within the reporting period. Based on our assessment, we believe that as of 30 September 2024, the Company's internal controls are effective. We will continue to work on further strengthening this position.

2. Summary of significant accounting policies

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

Basis of preparation
The financial statements have been prepared in accordance with IAS 34. The financial statements have been prepared on a historical cost basis except for Investment Properties, held for trading and available for sale financial instruments which are carried at fair value.
(All amounts are in Naira thousands unless otherwise stated)
Accounting Policies
The accounting policies adopted are consistent with those for the period ended 30 September, 2024.
Estimates
The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing these condensed interim financial statements, the significant judgements made by management in applying the group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the period ended 30 September 2024.
Financial Risk Management
The group's activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the group's financial performance.
This interim financial statements do not include all financial risk management information and disclosures required in the annual financial statements; they should be read in conjunction with the Company's annual financial statements as at 30 September 2024. There have been no changes in the risk management structure since year end or in any risk management policy.

UPDC PLC

Notes to the Consolidated and Separate Financial Statements - Continued

For the period ended 30 September 2024

2 Summary of significant accounting policies - Continued

2.4 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.

UPDC PLC

Notes to the Consolidated and Separate Financial Statements - Continued

For the period ended 30 September 2024

2 Summary of significant accounting policies - Continued

2.5 Consolidation - Continued

If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income is reclassified to profit or loss where appropriate.

The Group and the Company's share of post-acquisition profit or loss is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income with a corresponding adjustment to the carrying amount of the investment. When the Group and the Company's share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group and the Company does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

The Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case, the Group and the Company calculate the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognises the amount adjacent to 'share of profit/ (loss) of an associate' in the Profit or Loss.

Profits and losses resulting from upstream and downstream transactions between the Group and its associate are recognised in the Group's financial statements only to the extent of unrelated investor's interests in the associates. Unrealised losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group and the Company.

Dilution gains and losses arising on investments in associates are recognised in the Profit or Loss.

(e) Joint arrangements

The Group has applied IFRS 11 to all joint arrangements as of 1 January 2013. Under IFRS 11 investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations of each investor. The Group has assessed the nature of its joint arrangements and determined them to be both joint operations and joint ventures. Joint ventures are accounted for using the equity method. Under the equity method of accounting, interests in joint ventures are initially recognised at cost and adjusted thereafter to recognise the Group's share of the post-acquisition profits or losses and movements in other comprehensive income. When the Group's share of losses in a joint venture equals or exceeds its interests in the joint ventures (which includes any long-term interests that, in substance, form part of the Group's net investment in the joint ventures), the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the joint ventures.

The Group and the Company account for joint operation by treating the operation as its own operations by recognising its assets, including its share of any assets held jointly, its liabilities, including its share of any liabilities held jointly, its revenue from the sale of the output by the joint operation, its share of revenue from the sale of the output by the joint operation, its expenses, including its share of any expenses incurred jointly.

Unrealised gains on transactions between the Group and its joint ventures are eliminated to the extent of the Group's interest in the joint ventures. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of the joint ventures have been changed where necessary to ensure consistency with the policies adopted by the Group and the Company.

2.6 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Executive Committee that makes strategic decisions.

Attention: This is an excerpt of the original content. To continue reading it, access the original document here.