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Shareholders approve UPDC’s N550m dividend, bonus



Shareholders of UAC Nigeria Property Development Company, yesterday, approved a dividend payout of N550 million or 50 kobo per share and a bonus issue of one for every four shares held for the financial year ended December 31, 2009.

Beside, the shareholders also called on the company’s board to seek a viable option in rights issue for raising capital for projects that are yet to be concluded by the company.By approval on the bonus issue, the shareholders authorised the company’s board to capitalise the sum of N17.5 million out of the amount standing to the credit of the share premium account in the books of the company, and accordingly that the amount be set free for distribution amongst the members on the register of members, in proportion to their respective shareholdings in the company at that time. 
Speaking at the company’s yearly general meeting in Lagos, yesterday, the General Secretary, Independent Shareholders Association of Nigeria (ISAN), Mr Adetunji Adeleke, commended the company’s board for its ability to be able to declare dividend and bonus issue despite the harsh operating environment in the financial year under review, especially in the real estate sub-sector.

According to him, the inadequacy of funds in the light of the crisis in the financial sector has affected the pace and development of the real estate sub-sector, as well as the profitability of companies in the sector.He therefore urged the company to remain consistent with its bonus declaration and enhancing shareholders’ return on investments, while stressing the need for the company to embark on an aggressive campaign that will promote its properties.

Another shareholder, Oludewa Thorpe urged the company to address the issue of unclaimed dividends by further enhancing active participation of the shareholders in its activities.Chairman of the company, Mr Larry Ettah, said that the company is prepared to take advantage of the emerging opportunities in this period of economic downturn to improve the company’s profitability.“The company is positioned to take advantage of the emerging opportunities in the economy to create sustainable value for its shareholders. We would continue to exploit the wide gap between demand and supply of accommodation to the benefit of the company”, he said.

On the company’s future outlook, Ettah stated that the proceeds from the bond issue floated by the company would be utilised to finance its projects, while the company is poised to weather the storm and create sustainable value for its shareholders.A close look at the company’s results for the financial yearn under review showed that its turnover was put at N13.33 billion for 2009, compared to N13.32 billion recorded in 2008, while its profit after tax closed lower at N2.38 billion in 2009 from N3.68 billion in 2008.


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