Nairametrics| UACN Properties Plc aka UPDC issued a profit warning to its shareholders and investors at large on Thursday. A profit warning in layman’s English refers to when companies inform investors that they are expecting to report poor earnings. Poor earnings could be a profit that is significantly lower than the year before or at worst an outright loss.
According to the company’s press release it was expecting to report “materially lower earnings” in 2016 due to losses incurred in certain projects and “impairments of investment” in one of their “joint venture projects”. The company also blamed rising financial cost, foreign exchange losses and negative performance of the hotel asset as the reason. UPDC owns the Golden Tulip hotel in Festac.
UPDC has about 4 ongoing projects according to information on its website made up of 3 malls and an estate. It also has about 6 projects currently ongoing mostly housing projects.
The company reported a pre-tax profit of N132 million in the first 9 months of 2016. It reported a loss of N110 million in the corresponding period in 2015.