UAC approves N7.1bn capital return to shareholders
UAC of Nigeria Plc says its board of directors has approved N7.1 billion capital return to the company’s shareholders.
The company said its total profit for the year ended Dec. 31, 2020 was N3.9bn, compared with the N9.3 billion loss reported in 2019.
It said in a statement announcing the release of its annual results that revenue rose by three percent to N81.36 billion despite COVID-19-related disruptions.
UAC said its underlying operating profit was 26 percent lower at N3.6 billion, largely on account of the paints segment.
Its earnings per share was 92 kobo, up from negative 183 kobo in 2019, according to its annual results.
The company said total dividend of 120 kobo per share (N3.5 billion) comprised of an ordinary dividend of 65 kobo and a special dividend of 55 kobo per share, translating to a dividend yield of 13.8 percent.
UAC noted that it had completed partial exit from UACN Property Development Company Plc, adding that it received N6.6bn cash proceeds and 649,392,661 UPDC Real Estate Investment Trust units valued at N3.6bn.
The Group Managing Director, UAC, Fola Aiyesimoju, said, “UAC’s objective is to generate attractive long-term, risk-adjusted returns for our shareholders. I am delighted that the Board approved N7.1 billion in capital returns to shareholders via a mix of dividends and REIT units totalling N2.47 per share or a 28.3 percent return at current market values.
“Over the last 12 months, we faced a recession, civil unrest, and significant changes to the way we work due to the COVID-19 pandemic. In spite of these headwinds, we executed our key priorities, implemented initiatives relating to UPDC, strengthened management, and returned the group to profitability.
“Going forward, our focus remains on creating shareholder value and we continue to prioritise growth, scale, and simplicity to achieve this. We will explore acquisitions as an avenue to accelerate growth.”
