The board of UAC of Nigeria Plc (UAC) Plc yesterday announced that it would be recommending distribution of about N3 billion as dividends to shareholders as audited report and accounts for 2008 showed that the conglomerate surpassed forecasts.

In tandem with expectations of market pundits, directors of UAC are recommending a cash dividend per share of N2, totaling about N2.57 billion.

The current dividend per share of N2 represents an increase of about 18% on N 1.70 per share paid in the previous year. The conglomerate had increased cash payouts by 70% last year with a total dividend per share of N1.70 for the 2007 business year as against N1 paid for 2006.

Audited report and accounts of UAC for the year ended December 31, 2008 showed that turnover grew by .44%, while pre and post tax profits rose by 46% and 49% respectively.

The report also showed that pre-tax profit margin inched up to 16.4% in 2008 compared with 16.1% in 2007.

The report also showed that pre-tax profit margin inched up to 16.4% in 2008 compared with 16.1% in 2007.

All the key actual profit and loss figures surpassed earlier forecasts made by the board of the company; turnover rose from N37.16 billon in 2007 to N53.49 billion in 2008. Profit before tax stood at N8.78 billion in 2008 as against N6.0 billion in 2007. Profit after tax rose from N4.55 billion in 2007 to N6.79 billion in 2008.

The board of UAC had projected a basic net earnings per share of N3.63 for the 2008 business year but actual net earnings per share nearly doubled at N5.28, representing an increase of about 121% on N2.39 per share recorded in 2007.

The company had projected that turnover could cross the N40 billion mark while profit before tax was expected at N6.58 billon in 2008. Profit after tax was estimated at N4.64 billion in 2008.

In latest forecasts on the operations of the company this year, the board of directors is, meanwhile, upbeat on the prospects of the conglomerate with the board estimating that pre-tax earnings could be about N5 billion during the first half of the year.

The board projects that the company could record about N4.5 billion as profit before tax during the six-month period ending June 30, 2009.

According to the latest forecasts, pre-tax profit margin is expected at 15.3%, while sales and net earnings are estimate at N29.2 billion and N3.03 billion respectively.

The latest forecasts further reinforced the performance outlook of the conglomerate, with many analysts expecting the share price of the conglomerate to set new high in the days ahead.

Mr. Larry Ettah, Group Managing Director of UAC of Nigeria (UAC) Plc has said key strategic initiatives taken to deepen core businesses and concentration of more resources on growth areas would lead to better returns to shareholders in the years ahead.

He said the focus of management would be on ensuring impressive simultaneous growths in gross revenue and profitability to make sure the gains of the business – development drives reach shareholders.

According to him, the company is focusing its investments in areas with significant revenue growth opportunities in order to be in a position to drive overall performance and ensure that return are not only adequate but sustainable.

He said the conglomerate has made significant carpet investments in the flavoured and milk yogurt, ice cream, cereal and restaurant businesses.

He added that the company has embarked on expansion of its property profile as well as renovation and remodeling of its restaurants to meet varying demand of customers.

Financial Standard of Tuesday, 19th May, 2009