UAC Property commences transition to IFRS
By Micheal Eboh
UAC Property Development Company (UPDC) Plc has announced the commencement of a series of programmes aimed at ensuring a seamless transition to the adoption of the International Financial Reporting Standard (IFRS) in the preparation of its accounts and financial statements.
This, according to the Chairman of the company, Mr. Larry Ettah, at the 13th Annual General Meeting of the company in Lagos, is part of efforts geared towards ensuring full compliance with the directives of the regulatory authorities that public companies adopt the IFRS in the preparation of their financial statement by the year 2012.
Ettah disclosed that the parent company, UAC Group, has entered into an agreement with a leading accounting firm in the country, to help it develop a programme, group-wide, that will ensure a smooth transition to the new standard for financial reporting.
He said, “We have set up a road map for full convergence. Our accountants and Information Technology personnel have attended a series of workshops and training in order to get the necessary enlightenment on the IFRS and on how it will affect our business in the years ahead.
“We want to assure shareholders of full compliance with the directive before the deadline elapses, which is 2012.”
Speaking further, Ettah disclosed that the company has embarked on a strategic drive to grow its revenue in the coming days so as to mitigate its rising administrative expenses brought about by costs incurred in operations in its hospitality business.
To this end, he said that the company has concluded arrangements to commence the creation of awareness for its hotels and properties across the country, making them more visible to the general public so as to bring about increased patronage and therefore, increase in revenue.
He expressed the readiness of the company to take advantage of emerging opportunities in the real estate sector with the aim of creating sustainable value for the company.
“For the real estate sector,” he said, “a cautious optimism exists as major international housing markets continue to show strong signs of rebound. Significant gaps exist in housing volumes and types in Nigeria and your management and Board are poised to take advantage of the emerging opportunities to create sustainable value for you, our esteemed shareholders.”
He informed shareholders that proceeds from the company’s recently concluded N15 billion Corporate Bond issue which was over-subscribed were utilised to partly re-finance the company’s short-term borrowings and also fund its new land acquisitions for new projects.
The company, in its 2010 financial year, posted a turnover of N8.194 billion, dropping by 39 per cent from N13.331 billion recorded in 2009, it posted a profit before tax of N2.539 billion, dropping by 10 per cent from N2.828 billion recorded in 2009, while its profit after tax dipped by five per cent to N2.278 billion from N2.387 billion.