The Nation Newspaper

Tag: University Press

  • University Press doubles profit to N354.63m

    University Press Plc witnessed, improved performance in the immediate past year with 115 per cent growth in pre-tax profit.

    Key extracts of the 12-month audited report for the period ended March 31, 2018 showed remarkable improvements in the top-line and bottom-line of the publishing company. Turnover rose to N1.80 billion in 2018 as against N1.61 billion in 2017. Profit before tax doubled by 115 per cent from N164.94 million in 2017 to N354.63 million in 2018. Profit after tax also jumped from N118.42 million to N207.41 million. Earnings per share increased from 27.45 kobo to 48.08 kobo.

    The latest audited report further strengthened the positive outlook for the Ibadan, Oyo State-based University Press. The company had distributed N43.1 million to shareholders as cash dividend for the 2017 business year, representing a dividend per share of 10 kobo.

    The audited report for the year ended March 31, 2017 had shown significant improvements as turnover rose from N1.47 billion in 2016 to N1.61 billion in 2017. Profit before tax more than doubled to N164.94 million in 2017 as against N70.21 million in 2016. After taxes, net profit jumped from N73.28 million to N118.42 million. Basic earnings per share thus improved from 16.99 kobo in 2016 to 27.45 kobo in 2017.

     

  • University Press slows down as net earnings drop by 13.5%

    University Press Plc witnessed declines in sales and profit in the first six months of its current business year as the Ibadan, Oyo State-based printing and publishing company struggled to rein in mid-line costs to mitigate sluggish top-line.

    Key extracts of the six-month report for the period ended September 30, 2015 showed that University Press recorded a generally negative performance as a slowdown in sales reverberated through the profit and loss accounts.

    Total turnover dropped to N1.14 billion by September 2015 as against N1.32 billion in comparable period of 2014. Gross profit subsequently declined from N717.99 million to N647.15 million. Profit before tax also slowed from N336.79 million in 2014 to N273.84 million in 2015. After taxes, net profit also fell from N221.44 million to N191.51 million. Earnings per share thus declined from 51.33 kobo in September 2014 to 43.39 kobo by September 2015.

    The first half performance raised concerns that the printing and publishing company may remain on the downtrend, after positing negative performance in recent years. Key extracts of the audited report and accounts of University Press for the year ended March 31, 2015 showed that turnover dropped by 29 percent from N2.44 billion in 2014 to N1.73 billion in 2015. Profit before tax declined by 43 percent to N199.2 million in 2015 as against N348.12 billion in 2015. Profit after tax also dropped by 42 percent from N233.93 million to N136.39 million. Total assets dropped marginally by five per cent from N2.97 billion in 2014 to N2.82 billion in 2015. The board said the performance of the company was adversely affected by decline in public sector funding. The company meanwhile retained the dividend payout of N150.99 million, the same paid for the 2014 business year. Shareholders received a dividend per share of 20 kobo for the year just ended.

    The board of University Press (UP) Plc had expressed cautious optimism about the prospects for the current business year.

    Against the background of the dwindling revenues accruing to governments across the tiers and the activities of pirates, the performance of University Press declined in the immediate past year. Turnover dropped by 29 percent while net profit declined by 42 per cent.

    In a business review and outlook to be presented to shareholders at the annual general meeting late last month, directors of the company however said expected improvement in the national sphere and current strategies being implemented by the company would lead to improved performance and returns to shareholders.

    “We are cautiously positive about the business outlook in 2015 despite the seeming challenges. I have no doubt that the strategies we have put in place after due considerations of our expectations of the market scenarios in the coming year will be adequate to deliver better results,” the board stated in a report signed by chairman, University Press Plc, Dr. Lalekan Are.

    The report decried the unending piracy militating against the printing and publishing industry, noting that piracy constitutes a major threat to the book business in Nigeria.

    According to the board, the battle against piracy can only be won with the support of government and the public, especially the people that patronize the pirated books.

    “It is our hope that the wind of change blowing across the country will touch this area (piracy). Our company and other genuine publishers shall continue to deploy appropriate strategies and resources to save the industry from pirates who have continued to short-change investors, authors, employees and other stakeholders,” the chairman’s report stated.

  • University Press cautious about future outlook

    The board of University Press (UP) Plc is cautious but optimistic that the printing and publishing company would surmount industry and macroeconomic challenges to maintain steady profit and returns to shareholders.

    Against the background of the dwindling revenues accruing to governments across the tiers and the activities of pirates, the performance of University Press declined in the immediate past year. Turnover dropped by 29 percent while net profit declined by 42 per cent.

    In a business review and outlook to be presented to shareholders at the annual general meeting on Wednesday, directors of the company however said expected improvement in the national sphere and current strategies being implemented by the company would lead to improved performance and returns to shareholders.

    “We are cautiously positive about the business outlook in 2015 despite the seeming challenges. I have no doubt that the strategies we have put in place after due considerations of our expectations of the market scenarios in the coming year will be adequate to deliver better results,” the board stated in a report signed by chairman, University Press Plc, Dr. Lalekan Are.

    The report decried the unending piracy militating against the printing and publishing industry, noting that piracy constitutes a major threat to the book business in Nigeria.

    According to the board, the battle against piracy can only be won with the support of government and the public, especially the people that patronize the pirated books.

    “It is our hope that the wind of change blowing across the country will touch this area (piracy). Our company and other genuine publishers shall continue to deploy appropriate strategies and resources to save the industry from pirates who have continued to short-change investors, authors, employees and other stakeholders,” the chairman’s report stated.

    Key extracts of the audited report and accounts of University Press for the year ended March 31, 2015 showed that turnover dropped by 29 percent from N2.44 billion in 2014 to N1.73 billion in 2015. Profit before tax declined by 43 percent to N199.2 million in 2015 as against N348.12 billion in 2015. Profit after tax also dropped by 42 percent from N233.93 million to N136.39 million. Total assets dropped marginally by five per cent from N2.97 billion in 2014 to N2.82 billion in 2015. The board said the performance of the company was adversely affected by decline in public sector funding.

    The board of directors meanwhile retained the dividend payout of N150.99 million, the same paid for the 2014 business year. Shareholders would receive a dividend per share of 20 kobo for the year just ended.

    Shareholders are expected to consider and approve the dividend recommendation at the yearly general meeting scheduled for Ibadan, Oyo State this Wednesday.

     

  • University Press seeks approval to raise new funds from shareholders

    University Press (UP) Plc may soon launch a supplementary equity offer as the printing and publishing company is seeking regulatory approval to raise new equity funds from existing shareholders.

    Investment banking sources said University Press plans to undertake a rights issue and has secured necessary endorsements from key stakeholders, especially the major individual and institutional shareholders.

    The planned offer has now entered the approval stage, after which the company will have its completion board meeting and open the application list for subscription by shareholders.

    Shareholders of University Press had in 2013 approved the new issue. In order to edge against uncertainties, shareholders in September 2014 approved a special resolution allowing an underwriter to underwrite the rights issue and a waiver of their preemptive rights to allow the underwriter to but unsubscribed shares.

    There are indications that the foreign majority shareholder, Oxford University Press, United Kingdom, which has recently increased its shareholding from 9.19 per cent to 10.61 per cent, may be interested in increasing its equity stake.

    According to sources, University Press will use the net proceeds of the rights issue to finance business enhancement programme aimed at boosting its operations. The company had spent some N115 million on capital expenditure in the immediate past business year.

    University Press currently has outstanding issued shares of about 431.41 million ordinary shares, largely held by widely disperse minority retail shareholders. The company is owned by more than 11,000 shareholders with three major investors holding 23.71 per cent. Oxford University Press holds 10.61 per cent equity stake. Cashcraft Asset Management Limited, a Nigerian investment firm, holds 7.71 per cent while Dr. Lalekan Are, who chairs the board of directors, holds the largest individual equity stake of 6.26 per cent.

    University Press is one of the oldest surviving companies in Nigeria. Incorporated in 1949, it converted to a public limited liability company and listed its shares in 1978. Fundamentally, it is the leading quoted printing and publishing company.

    The company recently distributed N150.99 million to shareholders as cash dividends for the immediate past year ended March 31, 2014. Similar dividend rate was distributed for 2013, 2012 and 2011 business years. Shareholders received a dividend per share of 35 kobo for the year ended March 31, 2014, the same amount received at least in 2013 and 2012.

    However, the company’s bottom-line contracted further as it struggled with sluggish sales and rising costs. Key extracts of the audited report and accounts of UP for the year ended March 31, 2014 showed that total sales rose marginally from N2.31 billion in 2013 to N2.44 billion in 2014. Gross profit however dropped marginally from N1.17 billion to N1.166 billion. The decline became more pronounced with pre-tax profit dropping from N393.3 million in 2013 to N348.12 million in 2014.

    After taxes, net profit slipped to N233.93 million in 2014 as against profit after tax of N260.70 million in 2013. This implied earnings per share of 54.22 kobo in 2014, lower than 60.43 kobo posted in 2013.

    However, total assets rose from N2.82 billion in 2013 to N2.97 billion in 2014. Shareholders’ funds also increased from N2.17 billion to N2.24 billion.

  • University Press retains N151m dividends amidst declining profit

    University Press retains N151m dividends amidst declining profit

    The board of directors of University Press (UP) Plc has recommended distribution of N150.99 million to shareholders as cash dividends for the immediate past year, retaining the same dividend payout that it had distributed for 2013, 2012 and 2011 business years.

    A dividend recommendation released yesterday showed that shareholders would receive a dividend per share of 35 kobo for the year ended March 31, 2014, the same amount received at least in 2013 and 2012. The dividend would become payable on September 25.

    However, the company’s bottom-line contracted further as it struggled with sluggish sales and rising costs.

    Key extracts of the audited report and accounts of UP for the year ended March 31, 2014 showed that total sales rose marginally from N2.31 billion in 2013 to N2.44 billion in 2014. Gross profit however dropped marginally from N1.17 billion to N1.166 billion. The decline became more pronounced with pre-tax profit dropping from N393.3 million in 2013 to N348.12 million in 2014.

    After taxes, net profit slipped to N233.93 million in 2014 as against profit after tax of N260.70 million in 2013. This implied earnings per share of 54.22 kobo in 2014, lower than 60.43 kobo posted in 2013.

    However, total assets rose from N2.82 billion in 2013 to N2.97 billion in 2014. Shareholders’ funds also increased from N2.17 billion to N2.24 billion.

    University Press is one of the oldest surviving companies in Nigeria. Incorporated in 1949, it converted to a public limited liability company and listed its shares in 1978. Fundamentally, it is the leading quoted printing and publishing company.

    University Press is owned by about 11,000 shareholders with three major investors holding 23.71 per cent. Oxford University Press, United Kingdom, the foreign partner, holds 9.19 per cent equity stake. Cashcraft Asset Management Limited, a Nigerian investment firm, holds 8.26 per cent while Dr. Lalekan Are, who chairs the board of directors, holds the largest individual equity stake of 6.26 per cent.

    The company has benefitted immensely from stable board and management. Mr Samuel Kolawole remains the managing director. It complied broadly with the code of corporate governance and best practices with appropriate committees, checks and controls to ensure independence and integrity of the decision-making and accounting processes.

  • UP: Steady performance

    UP: Steady performance

    University Press (UP) Plc maintained a steady performance in 2013 with modest improvements in sales and profitability. The printing and publishing company grew sales by 11 per cent and reined in initial high costs of sales to retain modest improvement in the bottom-line. The steady profit outlook enabled the company to retain its dividend per share of 35 kobo while growing net assets per share by 17 per cent.

    Audited report and accounts of the printing and publishing company for the year ended March 31, 2013 showed average pre-tax profit margin improved marginally from 16.5 per cent in 2012 to 17 per cent in 2013 after the company fell on midline cost management to moderate the gross margin, which had dropped from 52.1 per cent to 50.8 per cent. The improved underlying bottom-line reflected in the actual pre and post tax profit, which grew by about 15 per cent each.

    While the overall cost of business was slightly higher, the balance sheet position of the company was stronger with better financing structure and liquidity. Its zero financial leverage remained a stabilising factor while adequate financing coverage provides reassurance on the cash flow of the company.

     

    Financing structure

    UP’s total assets inched up by 3.9 per cent from N2.68 billion to N2.79 billion. Non-current assets had increased by about 28 per cent from N1.02 billion to N1.30 billion while current assets dropped by 10.6 per cent from N1.66 billion to N1.49 billion. Total liabilities meanwhile dropped by 25.3 per cent to N623 million in 2013 as against N834 million in 2012. Current liabilities had dropped by 34 per cent from N772 million to N512 million. Long-term liabilities rose by 79 per cent from N62 million to N111 million. Shareholders’ funds increased by 17.1 per cent to N2.17 billion in 2013 as against N1.85 billion in 2012. The paid up share capital of the company remained unchanged at N216 million.

    The underlying financing position was stronger with better equity financing and less pressures from current liabilities. The proportion of equity funds to total assets improved from 68.9 per cent in 2012 to 77.7 per cent in 2013. Current liabilities/total assets ratio dropped from 28.8 per cent to 18.4 per cent while long-term liabilities/total assets ratio stood at 4.0 per cent in 2013 as against 2.3 per cent in 2012. The company maintained zero gearing ratio with no outstanding indebtedness to banks.

     

    Efficiency

    The company managed to balance costs and productivity, harnessing its improving midline cost management to mitigate top-line costs. Average number of employees reduced from 301 persons in 2012 to 293 persons in 2013. Total staff costs meanwhile increased from N293.12 million to N339.43 million, representing average staff cost per head of N1.16 million in 2013 as against N0.974 million in 2012. Average contribution of each employee to the pre-tax profit improved correspondingly from N1.14 million to N1.34 million. Total cost of business, excluding financing charges, inched up to 84.5 per cent of total incomes in 2013 as against 84 per cent recorded in 2012.

     

    Profitability

    UP sustained a modest profit outlook; with both actual profit and loss figures and underlying profitability ratios showing appreciable improvements. Total turnover grew by 11 per cent from N2.08 billion in 2012 to N2.31 billion in 2013. The company’s only business line remained sales of printed books. The top-line performance reflected modest growth in sales in the western and northern regions as well as impressive increase in emerging export sales. UP divided its domestic market into three zones-western, northern and eastern zones. Turnover in the western zone increased by 12.5 per cent from N702.10 million to N789.54 million. Sales within the northern zone also improved by 12 per cent to N985.15 million as against N877.04 million in previous year. However, sales within the eastern zone was almost flat at N500.64 million in 2013 as against N500.3 million in 2012. Export sales jumped from N2.67 million in 2012 to N37.38 million in 2013.

    Cost of sales, however, rose by 14 per cent from N998 million to N1.14 billion. This moderated gross profit growth to 8.4 per cent at N1.18 billion in 2013 compared with N1.08 billion in 2012. Total operating expenses grew by 8.9 per cent from N751 million to N818 million. Non-core business income rose by 146 per cent to N48 million as against N19 million. Finance charges increased by 29 per cent from N9 million to N12 million. With these, profit before tax improved by 14.5 per cent to N393 million in 2013 as against N344 million in 2012. After taxes, net profit stood at N261 million as against N227 million, indicating an increase of 14.6 per cent.

    Earnings per share increased by 14.6 per cent from 53 kobo in 2012 to 60 kobo in 2013. The company distributed N151 million as cash dividends to shareholders, representing a dividend per share of 35 kobo, the same rate paid for the previous year. Net assets per share meanwhile improved from N4.29 to N5.02.

    Underlying performance ratios were mostly on the upward. While gross profit margin slipped from 52.1 per cent to 50.8 per cent, pre-tax profit margin improved from 16.5 per cent to 17 per cent. Return on total assets increased from 12.8 per cent to 14.1 per cent while dividend cover firmed up to 1.73 times as against 1.51 times in previous year. However, return on equity slipped from 12.3 per cent to 12 per cent.

     

    Liquidity

    The liquidity position of the company remained stable. Current ratio, which relates probable current liabilities with similar assets, improved from 2.15 times in 2012 to 2.90 times in 2013. The proportion of working capital to total sales was steady at 42.1 per cent in 2013 compared with 42.7 per cent in 2012. Debtors/creditors ratio stood at 1,594 per cent in 2013 as against 32.2 per cent in 2012.

     

    Governance & structures

    Incorporated in 1949, UP is one of the oldest surviving companies in Nigeria. It became a public limited liability company and listed its shares in 1978. University Press is owned by about 11,000 shareholders with three major investors holding 23.77 per cent. Oxford University Press, United Kingdom, the foreign partner, holds 9.80 per cent equity stake. Cashcraft Asset Management Limited, a Nigerian investment firm, holds 7.71 per cent while Dr. Lekan Are, who chairs the Board of Directors, holds the largest individual equity stake of 6.26 per cent.

    The board and management remain stable. Mr Samuel Kolawole still leads corporate growth as managing director. UP broadly complies with code of corporate governance and best practices with appropriate committees, checks and controls to ensure independence and integrity of the decision-making and accounting processes.

     

    Analyst’s opinion

    University Press has shown appreciable resilience and stability. However, it needs to retool its sales strategy to unlock new domestic and international markets. There is a limit to the use of cost management in sustaining profit in the face of sluggish sales. As noted earlier, a large top-line growth will provide more room to manage costs and deliver a healthier bottom-line. UP needs to explore new product development. Besides, it needs to find new high-margin ways of selling traditional products. While building on its public sector patronage, the company also has to break new grounds in the domestic and international private education businesses. It has started this with the increase in export sales.

    The expected recapitalisation of the company would provide additional capital to further support growth and steady it against operating challenges. Overall, there is a reasonable basis to assume that UP will sustain steady performance in the years ahead.