The Nation Newspaper

Tag: dividend

  • Dividend warrant to go by June 2017

    Capital market regulators and operators have reached agreement to discontinue issuance of dividend warrant as from June 30, 2017 as stakeholders consolidate initiatives aimed at full automation of transactions and payments in the market.

    At the end of the second quarter meeting of the Capital Market Committee (CMC), stakeholders in the Nigerian capital market directed that registrars would stop issuing dividend warrants as payments for dividends as from June 30, 2017. Shareholders will thereafter fully receive their dividends through the electronic dividend (e-dividend) directly into their bank accounts.

    The CMC, chaired by the director general of Securities and Exchange Commission (SEC), consists of chief executives of all registered capital market operators including stockbrokers, solicitors, custodians, fund managers, issuing houses, rating agencies, registrars, reporting accountants, trustees and consultants among others.  Other members included chief executives of the Chartered Institute of Stockbrokers (CIS); Nigerian Stock Exchange (NSE), Abuja Securities and Commodity Exchange (ASCE) and Central Securities Clearing System (CSCS).

    The CMC also included two members each from observer groups, which included Asset Management Corporation of Nigeria (AMCON), Central Bank of Nigeria (CBN), Corporate Affairs Commission (CAC), Debt Management Office (DMO),  Federal Ministry of Finance, Federal Mortgage Bank of Nigeria (FMBN), Federal Inland Revenue Service (FIRS), Nigerian Deposit Insurance Corporation (NDIC), Investment and Securities Tribunal (IST), Nigerian Investment Promotion Council (NIPC), National Insurance Commission (Naicom), National Pension Commission (Pencom) and FSS2020.

    At a post-CMC media briefing yesterday, Director General, Securities and Exchange Commission (SEC), said the full automation of dividend payment will ensure that shareholders receive their dividends without delay.

    According to him, the e-dividend would stem the menace of unclaimed dividend and also ensure that the registrars can automatically pay the backlog of unclaimed dividends to verified shareholders’ bank accounts.

    He said the Commission has undertaken to extend the free e-dividend registration till December 31, 2016, urging shareholders to take advantage of the opportunity to enroll for the e-dividend.

    He lamented the poor response of shareholders to the initial e-dividend registration campaign noting that only 6,000 Nigerians have so far registered for e-dividend payment mandate launched by the SEC, the Central Bank of Nigeria and the Nigeria Inter-Bank Settlement System (NIBSS) in July 2015.

    He stressed that the aim of the e-dividend system was to eradicate the difficulty encountered by retail investors in claiming their dividends.

     

  • CAP reassures as shareholders approve N1.64b dividend

    The board and management of CAP Plc have assured that the company would continue to explore opportunities to grow its business and deliver competitive returns to shareholders in spite of the macroeconomic challenges.

    At the annual general meeting at Golden Tulip Festac, yesterday in Lagos, shareholders of the leading paint company approved a final dividend of N840 million, representing a dividend per share of N1.20. CAP had earlier paid an interim dividend per share of N1.15 on December 15, 2015, bringing total dividend for 2015 business year to N1.645 billion or N2.35 per share.

    Notwithstanding the contraction in purchasing power and the constraints in the macro economy, CAP, a subsidiary of UAC of Nigeria Plc, showed steadied performance with turnover rising by one per cent to N7.06 billion while profit before tax inched up by five per cent to N2.57 billion.

    Addressing the shareholders, chairman, CAP Plc, Mr Larry Ettah, said the board and management have worked out mitigating strategies to curtail the adverse impact of macroeconomic challenges on the performance of the company.

    He noted that while the largely expansionary fiscal policy of the government will seek to stimulate economic activities and generate employment and thus impact on companies such as CAP, the acute shortage of foreign exchange that started this year could adversely affect corporate performance.

    According to him, the cumulative effect of the scarcity of foreign exchange, falling oil prices, and the resurgence of restiveness in the Niger Delta, which could endanger the production output of 2.2 million barrels per day and the continued depletion of foreign reserves pose serious threats to businesses and social activities in 2016.

    “The board and management of your company are alive to these challenges and have outlined mitigating strategies to ensure that these headwinds do not significantly impact our business negatively in 2016,” Ettah assured.

    He pointed out that in order to further improve the company’s brand visibility and accessibility to consumers; it opened additional Dulux Colour Centres in Yola and Gombe and Dulux Colour Shops in Lafia, Ada-George Port Harcourt, Ado-Ekiti, Dugbe Ibadan, Agbor, Suleja, Lugbe Abuja and Jalingo in 2015.

    He added that the company has also retained its ISO 9001:2008 and 14001:2004 certifications on quality and environmental standards respectively, which underlined continuing offering of high quality products and services to customers and compliance with regulatory requirements and conduct in its operations.

  • Dangote Sugar Refinery’s shareholders get N6b dividend

    Dangote Sugar Refinery’s shareholders get N6b dividend

    Shareholders of Dangote Sugar Refinery (DSR) Plc yesterday approved the recommendation of the board of director to distribute a total of N6 billion as cash dividends for the 2015 business year.

    At the annual general meeting in Lagos, shareholders lauded the performance of the company in spite of the economic downturn noting that the dividend per share of 50 kobo underscored the commitment of the company to shareholders.

    Key extracts of the audited report and accounts of DSR for the year ended December 31, 2015 showed that total turnover rose from N94.86 billion in 2014 to N101.06 billion. Gross profit also improved from N18.63 billion to N20.73 billion. Operating Profit increased to N15.85 billion in 2015 as against N13.59 billion in 2014.

    Also, the company recorded a profit before tax of N16.55 billion in 2015, representing an increase of eight per cent on N15.27 billion recorded in 2014. After taxes, net profit however dropped marginally from N11.64 billion to N11.54 billion. Earnings per share followed the trend, dropping slightly from 97 kobo in 2014 to 96 kobo. Total assets rose to N102.62 billion in 2015 as against N92.80 billion in 2014.

    The highlights of the company’s operations in 2015 showed that season sugar production at Savannah was 6,610 tonnes, up from 6,333 tonnes in 2014. The full year refinery production at Apapa stood at 740,350 tonnes, down from 832,660 tonnes the previous year. Group sugar sales improved from 781,319 tonnes in 2014 to 782,120 in 2015. The company added 100 trucks to the fleet under its management.

    In his address, chairman, Dangote Sugar refinery (DSR) Plc, Alhaji Aliko Dangote, said the company remained committed  to delivering  superior returns to its shareholders as shown with the N6 billion dividend for the year ended December 31, 2015.

    He pointed out that the immediate past business year was a very challenging  year as the political transition and economic slowdown impacted consumer spending and the global oversupply of crude oil weakened the naira, leaving an average Nigerian consumer with less purchasing  power than in the past three to four years.

    He said directors of the company would continue to ensure prudent financial management in view of the company’s investment requirement for the backward integration project(BIP) and building of a sustainable financial future for the company.

    In his remarks, Acting Managing Director, Dangote Su) Plc, Abdullahi Sule said 2016 commenced on a good footing as the company continued to increase its market share while implementing various initiatives and projects towards the actualisation of its target within the next five years.

    “Achievement of the backward integration projects (BIP) targets remains our priority, and this will eliminate our reliance on foreign exchange as well as volatility of raw sugar prices, the highest single driver of our production cost,” Sule said.

    He expressed confidence that DSR can continue to  help Nigeria reach its near-term goal of sugar self-sufficiency by achieving its target of 1.5 million metric tonnes of refined sugar from locally grown sugar cane in the next 10 years.

  • Dangote Sugar Refinery to pay N7.2b dividend

    Dangote Sugar Refinery to pay N7.2b dividend

    Shareholders of Dangote Sugar Refinery (DSR) Plc will receive N7.2 billion cash dividends for the 2015 business year, according to the sugar-refining company’s earnings report, which has shown a modest growth in sales.

    The board of directors of DSR indicated that shareholders will receive a dividend per share of 60 kobo, about 62.5 per cent of the net earnings per share for the year.

    Key extracts of the audited report and accounts of DRS for the year ended December 31, 2015 showed that total turnover rose from N94.86 billion in 2014 to N101.06 billion. Gross profit also improved from N18.63 billion to N20.73 billion. Operating Profit increased to N15.85 billion in 2015 as against N13.59 billion in 2014.

    Also, the company recorded a profit before tax of N16.55 billion in 2015, representing an increase of eight per cent on N15.27 billion recorded in 2014. After taxes, net profit however dropped marginally from N11.64 billion to N11.54 billion. Earnings per share followed the trend, dropping slightly from 97 kobo in 2014 to 96 kobo. Total assets rose to N102.62 billion in 2015 as against N92.80 billion in 2014.

    The highlights of the company’s operations in 2015 showed that season sugar production at Savannah was 6,610 tonnes, up from 6,333 tonnes in 2014. The full year refinery production at Apapa stood at 740,350 tonnes, down from 832,660 tonnes the previous year. Group sugar sales improved from 781,319 tonnes in 2014 to 782,120 in 2015. The company added 100 trucks to the fleet under its management.

    Acting Group Managing Director, Dangote Sugar Refinery (DRS) Plc, Mr. Abdullahi Sule, said it was gladdening that the company was able to grow its revenue by 11 per cent and improve sales volumes compared to 2014 despite the current macro-economic challenges which Nigeria is facing.

    According to him, the 2015 business year ended with remarkable increase in volume in the fourth quarter as its corporate strategy to reduce margins in September by 28 per cent and the addition of 100 trucks to its fleet improved delivery to customers and resulted in increased market share.

    He outlined that the company has redeveloped its sequencing strategy to self-sufficiency through the production of refined sugar from cane and remain steadfast in its efforts to execute the “Sugar for Nigeria” project.

    “We have already had a strong start to 2016 as we pick up market share from competitors and smugglers. We have increased our fleet and are now able to meet our customer orders timely. We expect raw sugar prices to remain volatile for the rest of the year as weather conditions continue to threaten production in 2015/2016 season but do not expect to exceed the average achieved in 2015,” Sule said.

    He noted that refined sugar from cane remains the priority for the company adding that this path to self-sufficiency will eliminate reliance on foreign exchange as well as the volatility of raw sugar prices known with the currently import.

     

  • Access Bank rallies as shareholders get N5.7b interim dividend

    Access Bank rallies as shareholders get N5.7b interim dividend

    Access Bank Plc was a major contrarian stock in the negative trading at the Nigerian stock market yesterday as the top-tier commercial bank released its half-year earnings report, showing impressive growths across key fundamentals.

    On the strength of the six-month earnings, which saw 43 per cent growth in gross earnings and 39 per cent in profit after tax, the board of the bank has recommended distribution of N5.72 billion as interim dividend to shareholders. The breakdown of the dividend recommendation indicated that shareholders on the register of the bank as at the close of business on September 3, 2015 would receive a dividend per share of 25 kobo. More than 830,000 shareholders would benefit from the interim dividend, which becomes payable on September 10, 2 105.

    Against the average decline of 0.98 per cent, Access Bank’s share price rose by 4.91 per cent, the fourth highest percentage gain, to close at N4.29 as the news made the round at the Nigerian Stock Exchange (NSE).

    Key extracts of the audited report for the six-month ended June 30, 2015 showed that gross earnings rose by 43 per cent to N168.3 billion in first half 2015 as against N117.9 billion recorded in comparable period of 2014. The top-line was boosted by an 18 per cent increase in interest income to N98.9 billion in the first half of 2015 compared with N83.6 billion in the comparable period of 2014. Group profit before tax leapt by 44 per cent to N39.1 billion as against N27.1 billion in previous year while profit after tax grew by 39 per cent to N31.3 billion in first half 2015 compared with N22.6 billion in first half 2014.

    Non-interest income had risen by 101 per cent to N69.4 billion in first half 2015 as against N34.6 billion in first half 2014. Return on average equity improved to 21.6 per cent in first half 2015 from 16.5 per cent in 2014.

    Group managing director, Access Bank Plc, Mr. Herbert Wigwe said the results reflect the bank’s concerted efforts to deliver on its growth objectives for 2015.

    According to him, while the first half of the year was defined by significant macro-economic and policy headwinds with major impact on all aspects of its business, the group despite those challenges reported improved profits in the first half of the year with significant contributions from its securities trading business.

    He commended the strong support from shareholders of the bank noting that the success of the recently concluded rights issue which raised N41.8 billion has placed the bank in a stronger position.

    “With our capital position secure, our priority will be to focus on; driving migration of our customers to alternative platforms  to boost profitability of our channels; implementing  our customer service improvement initiatives; generating low-cost liability from continued engagement with customers; growing risk assets by deepening market share in target sectors; optimising and improving penetration of our customers’ value chain and driving operational efficiency through  cost containment and procurement optimization measures,” Wigwe said.

  • JPMorgan reaps $150m dividend from Henry Bath

    JPMorgan reaps $150m dividend from Henry Bath

    JPMorgan Chase & Co reaped a $150 million dividend from its metals storage business Henry Bath & Son before selling its physical commodities business last October, as the firm reported its first loss in over a decade, a filing at the weekend showed.

    A review of filings to the UK business registry revealed the payout to the Wall Street bank and the loss were the first since 2002 when Henry Bath was held by Enron, the failed energy trader and one of its best-known owners in its 200-year history.

    JPMorgan officials were not immediately available for comment on the matter.

    The payment to JPMorgan included in a filing at the weekend illustrates the big profits made during a period when warehouse owners were under attack for exploiting exchange rules in order to collect more rent on stockpiled metals.

    But the loss also underscores how quickly the lucrative business model has unraveled after the London Metal Exchange cracked down on the practices over the past two years, making it harder for storage firms to capture big profits.

    Last year, the company, one of the founding members of the LME, swung to an after-tax loss of $6.5 million as turnover shrank by a third to $84 million and inventories fell for a second year, the filing said.

    That compares with a $12 million profit in 2012 and bumper profits of $113 million in 2009, a year before JPMorgan bought the business.

    It was also its first year in the red since 2002 when it reported a loss of just under $1 million. In March 2002, Henry Bath paid a $7 million dividend shortly before being sold to Sempra Energy.

    Last year’s dividend was the only one returned to JPMorgan, suggesting the sum was an accumulation of profits during its four-year ownership.

    The bank sold its physical commodities unit, including Henry Bath, for $800 million last October to energy trader Mercuria, ending a four-year foray into the lucrative business of handling oil, gas and metals amid rising regulatory and political pressure to retreat to the bank’s core business of lending.

    Trafigura and JPMorgan’s rival Goldman Sachs, which also got into metals storage in 2010 lured by the fat margins, also exited recently.

    Goldman Sachs sold its Metro warehousing last year and in August, Trafigura pulled out altogether.

    Last week, China’s CMST Development Co Ltd said it planned to buy a majority stake in Henry Bath from Mercuria for $60 million

     

  • Guinness Nigeria rallies on N4.8b dividend, Diageo’s acquisition

    Guinness Nigeria Plc, one of the oldest listed companies in Nigeria, recorded the second highest gain at the Nigerian stock market last week as investors reacted positively to the proposed distribution of N4.8 billion to shareholders as cash dividends and announcement of a N41 billion bid by Diageo Plc to acquire additional shares in Guinness Nigeria.

    Shareholders would receive a dividend per share of N3.20 for the immediate past business year ended June 30, 2015.

    Diageo Plc, the parent company of Guinness Nigeria Plc, last week said it has launched preliminary discussions on a bid to acquire additional equity stake to increase its majority controlling stake in the Nigerian subsidiary to 70 per cent.

    In a regulatory filing at the Nigerian Stock Exchange (NSE), directors of Guinness Nigeria said Diageo has approached the board with an intention to make an offer to increase its equity stake in Guinness Nigeria from 54.3 per cent to a maximum of 70 per cent. Diageo will maintain Guinness Nigeria’s listing on the NSE. Guinness Nigeria has notified the NSE of Diageo’s approach.

    In a deal estimated at about N41 billion, Diageo, through its wholly-owned subsidiary-Guinness Overseas Limited; plans to purchase up to 236.18 million ordinary shares of 50 kobo each in Guinness Nigeria at a maximum price of N175.

    With the announcement of the dividend recommendation and the Diageo’s proposed bid, Guinness Nigeria’s share price rose by 18.9 per cent or N24.19 to close the week at N152.19 per share. Guinness Nigeria’s performance is significantly above average week-on-week return of 0.60 per cent recorded by the benchmark index for the stock market.

    The audited report and accounts for the 12-month period ended June 30, 2015 showed that the brewer of Malta Guinness recorded nine per cent increase in sales, although cost headwinds impinged on the net earnings.

    Managing Director, Guinness Nigeria Plc, Mr. Peter Ndegwa, said the results reflected strong volume growth on the back of year-on-year impressive performance of the company’s innovation and value brands.

    “We delivered a nine per cent increase in net sales during the year in a tough trading environment largely driven by the growth in our RTD category and value beer segment. Our gross profit also grew by nine per cent,” Ndegwa noted.

    Turnover rose from N109.2 billion in 2014 to N118.5 billion in 2015. Profit before tax stood at N10.8 billion in 2015 as against N11.7 billion in 2014. Profit after tax also closed June 2015 at N7.79 billion compared with N9.57 billion in 2014. Earnings per share thus stood at N5.18 and N6.36 in 2014 and 2015 respectively.

    Ndegwa attributed the depressed bottom-line to recent significant investments in the company’s products and marketing framework.

    “During the year, we continued to invest significantly behind our brands and our route to consumer expansion and these, together with the high interest environment, have driven a profit before tax decline of nine per cent,” Ndegwa said.

    Chairman, Guinness Nigeria Plc, Mr. Babatunde Savage said the company has been well-positioned to take advantage of improvement in the Nigerian economy.

    “The current economic environment is challenging for all companies but we look forward to an improvement in the operating environment and are positioned to take advantage of improving consumer confidence that may occur as a result,” Savage said.

    Guinness Nigeria doubles as one of the oldest companies in Nigeria and one of the oldest listed companies on the Nigerian Stock Exchange (NSE). Guinness Nigeria built its first brewery in Ikeja in 1962, and currently has facilities in Ogba, Benin City and Aba. It was listed on the NSE in 1965. Guinness Nigeria is a member of Diageo Plc; which is listed on both the London Stock Exchange (LSE) and the New York Stock Exchange (NYSE).

     

  • Access Bank rallies as shareholders get N5.7b interim dividend

    Access Bank rallies as shareholders get N5.7b interim dividend

    Access Bank Plc was a major contrarian stock in the negative trading at the Nigerian stock market yesterday as the top-tier commercial bank released its half-year earnings report, showing impressive growths across key fundamentals.

    On the strength of the six-month earnings, which saw 43 per cent growth in gross earnings and 39 per cent in profit after tax, the board of the bank has recommended distribution of N5.72 billion as interim dividend to shareholders. The breakdown of the dividend recommendation indicated that shareholders on the register of the bank as at the close of business on September 3, 2015 would receive a dividend per share of 25 kobo. More than 830,000 shareholders would benefit from the interim dividend, which becomes payable on September 10, 2 105.

    Against the average decline of 0.98 per cent, Access Bank’s share price rose by 4.91 per cent, the fourth highest percentage gain, to close at N4.29 as the news made the round at the Nigerian Stock Exchange (NSE).

    Key extracts of the audited report for the six-month ended June 30, 2015 showed that gross earnings rose by 43 per cent to N168.3 billion in first half 2015 as against N117.9 billion recorded in comparable period of 2014. The top-line was boosted by an 18 per cent increase in interest income to N98.9 billion in the first half of 2015 compared with N83.6 billion in the comparable period of 2014. Group profit before tax leapt by 44 per cent to N39.1 billion as against N27.1 billion in previous year while profit after tax grew by 39 per cent to N31.3 billion in first half 2015 compared with N22.6 billion in first half 2014.

    Non-interest income had risen by 101 per cent to N69.4 billion in first half 2015 as against N34.6 billion in first half 2014. Return on average equity improved to 21.6 per cent in first half 2015 from 16.5 per cent in 2014.

    Group managing director, Access Bank Plc, Mr. Herbert Wigwe said the results reflect the bank’s concerted efforts to deliver on its growth objectives for 2015.

    According to him, while the first half of the year was defined by significant macro-economic and policy headwinds with major impact on all aspects of its business, the group despite those challenges reported improved profits in the first half of the year with significant contributions from its securities trading business.

    He commended the strong support from shareholders of the bank noting that the success of the recently concluded rights issue which raised N41.8 billion has placed the bank in a stronger position.

    “With our capital position secure, our priority will be to focus on; driving migration of our customers to alternative platforms  to boost profitability of our channels; implementing  our customer service improvement initiatives; generating low-cost liability from continued engagement with customers; growing risk assets by deepening market share in target sectors; optimising and improving penetration of our customers’ value chain and driving operational efficiency through  cost containment and procurement optimization measures,” Wigwe said.

  • UBA declares N7.2b interim dividend in first half

    UBA declares N7.2b interim dividend in first half

    Shareholders of United Bank for Africa (UBA) Plc would share a total of N7.2 billion as interim cash dividends as the bank’s net profit rose by 40 per cent in the first half.

    The board of directors of UBA yesterday announced that shareholders would receive a dividend per share of 20 kobo on September 16. The dividend recommendation was part of the highlights of the bank’s earnings report for the half-year ended June 30, 2015.

    UBA’s share price rose by 4.85 per cent at the Nigerian Stock Exchange (NSE).

    The six-month earnings report showed strong growth in earnings and profits, as the bank continued to optimize its pan-African African network, which now contributing to over 23 per cent of profit after tax.

    Key extracts showed that gross earnings rose by 21 per cent to N166.9 billion by June 2015 compared with N138.2 billion in comparable period of June 2014. Profit before tax grew by 35.1 per cent to N39.0 billion as against N28.89 billion recorded in corresponding period of 2014. Profit after tax jumped by 40 per cent to N32 billion in 2015 compared with N22.86 billion posted in comparable period of 2014. Earnings per share increased from 71 kobo to 94 kobo.

    Commenting on the results, group managing director, United Bank for Africa (UBA) Plc, Mr. Phillips Oduoza said the results showed the resilience of the bank’s business strategy in the face of the challenging operating environment.

    “Our business strategy has proved to be resilient, balancing prudence, with an ability to significantly grow bottom line and continue to focus on operating effectiveness. We look forward to continuing to support our customers and working with them to achieve financial success for them and the wider Nigerian and African economies,” Oduoza said.

    He said the bank’s bottom-line reflected better extraction of value across all business segments and ongoing process optimization.

    According to him, it was also satisfying to see the bank’s cost-to-income ratio decline further while the bank has maintained a healthy loan book, a tribute to both its risk management and to the robustness of its clients’ businesses, with non-performing ratio at just 1.8 per cent of total loans granted, one of the lowest in the banking industry.

    “We understand that many in Nigeria are facing difficult economic circumstances and we are very much shouldering our responsibility to support and grow wealth creation,” Oduoza said.

    Speaking on the performance of the bank’s African subsidiaries, group chief financial officer, UBA, Ugo Nwaghodoh said the bank’s businesses in other African countries have started to significantly impact the group’s returns, contributing 23 per cent of profit after tax, with an even stronger outlook.

    He said recent initiatives taken by the bank to improve operational efficiencies have been yielding positive results, thus reinforcing optimism on the future of UBA’s African business.

  • UPDC outlines new growth plan as shareholders get N859m dividend

    UACN Property Development Company (UPDC) Plc plans to source additional capital through a supplementary equity issue and disposal of certain surplus assets as part of a medium-term plan to deleverage the real estate company and boost its liquidity.

    Chairman, UACN Property Development Company (UPDC) Plc, Mr. Larry Ettah, outlined the strategic plan of the company at the annual general meeting held at Golden Tulip, Festac, Lagos. Shareholders approved distribution of N N859.4 million as cash dividends for the 2014 business year, representing a dividend per share of 50 kobo.

    Ettah said the company is focused on long-term value creation and has put in place strategies to enable it take advantage of emerging opportunities in the market place.

    He outlined that the company would be raising new equity funds through a supplementary capital issue while it would also dispose its surplus equity stake in the UPDC Real Estate Investment Trust (UPDC Reit) to reduce its debt overhang and free more earnings for shareholders.

    “Our strategy for 2015 and beyond include deleveraging the business through equity capital injection, disposal of the surplus stake currently held in UPDC REIT, about 21.5 per cent, to generate liquidity and re-creating our products portfolio to include more commercial and retail offerings which have proven to be more resilient revenue sources in periods of depression,” Ettah said.

    He noted that the Nigerian real estate market remained attractive as there were significant untapped potentials in the residential segment, and numerous opportunities in the hospitality, retail, commercial and industrial segments of the market in the near term.

    According to him, in recent years, foreign private equity firms have invested millions of dollars in the Nigerian real estate market due to existing and emerging huge demand which is driven by increasing urban population and changing shopping culture among the expanding middle class.

    “The real estate market is gradually rebounding and has experienced reasonable growth and performance in the last few years. This performance is largely driven by the re-emergence of the Nigerian middle-class and the increasing demand for decent residential and commercial accommodation by high net-worth individuals, corporate organizations and key players in the retail segment of the economy,” Ettah pointed out.

    He added that the upturn in economic activity which started in the last quarter of 2011 has led to an increase in demand and supply for commercial and high end residential developments, particularly in the key cities of Abuja, Lagos and Port Harcourt.

    He said UPDC has continued its ongoing developments in 2014 and commenced some new ones, assuring that the company is on a good footing to sustain good performance.

    Ettah however highlighted that challenges being faced by the industry in terms of title uncertainties, high cost of funding, inadequate mortgage financing and poor infrastructure are expected to persist in the medium term and might continue to prevent effective demand in the low to medium residential market segments.

    Audited report and accounts for the year ended December 31, 2014 showed group turnover of N11.70 billion in 2014 as against N11.29 billion in 2013. Profit before taxation stood N3.54 billion compared with N3.71 billion in 2013.