UACN proposes N7.1bn capital return to shareholders

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UACN proposes N7.1bn capital return to shareholders

UAC of Nigeria Plc (UAC) has announced N7.1 billion capital return to shareholders in its audited results for the year ended December 31, 2020.

In the company’s audited result for 2020 released on the Nigerian Stock Exchange (NSE), UACN revealed that the N7.1 billion capital return, comprises a mix of N3.5 billion dividends as well as Real Estate Investment Trust (REIT) units valued at N3.6 billion.

The directors recommended a total dividend of N1.20 per share, amounting to N3.5 billion, comprising an ordinary dividend of 65 kobo and a special dividend of 55 kobo per share. This translates to a dividend yield of 13.8 per cent.

The company’s results also showed a revenue growth of three per cent from N79.202 billion in 2019 to N81.358 billion in 2020, while gross profit declined by four per cent to N15.990 billion as against N16.627 billion achieved in 2019.

Also, the company posted a profit of N3.927 billion as against a loss of N9.256 billion in 2019. Earnings per share was 92 kobo compared with negative 183 kobo in 2019.

Speaking on the results, the group managing director, Fola Aiyesimoju, stated that, UACs objective is to generate attractive long-term, risk-adjusted returns for its shareholders, adding that, “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 per cent return at current market values.”

Aiyesimoju explained that, as part of the partial exit from UPDC, UAC received N6.6 billion net cash proceeds and 649 million UPDC REIT units valued at N3.6 billion.

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