Ahead of the release of its audited financials for the year ended December 31, 2016, the board of UACN Property Development Company Plc, on Thursday said the numbers may come in “materially lower.”
This it blamed primarily on “the recognition of losses on certain projects and impairment of investments in one joint venture project occasioned by significant increase in finance costs.”
The situation, the statement added, was made worse by foreign exchange losses and the negative performance of its subsidiary- UPDC Hotels Limited is a company incorporated to hold and manage the assets of Festac ’77 Hotel bought from the Federal Government in 2002, now operating as Golden Tulip Hotel.
The statement by Godwin Samuel, UPDC’s company secretary, however assured that despite “the continued lull in the real estate sector occasioned by the headwinds of the macro-economic environment, the fundamentals of the business remain strong and we are restructuring and repositioning the company to better deal with the challenges of the times and expore emerging opportunities.”
