University Press Plc (NGX: UPL) ), a company in the business of publishing, sales and distribution of educational books and materials, has reported a 31.40% drop in profit for the year ended 31 March, 2023.
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The publisher posted a profit of N142mn for the year in review, N65mn and 31.40% lower than the N207mn it reported in 2022.
A decrease in revenue and increase in operating expenses contributed to the company’s profit decline, as both factors brought about a drop in operating profits from N329.15mn to N191.20mn.
The Directors of the company stated that having made assessment of the Company’s ability to continue as a going concern, they found no reason to believe that the company will not remain a going concern for at least twelve months from the date of the financial statements.
The Directors recommend a dividend of 10k (2022 : 5k) per ordinary share of 50 kobo, each amounting N43,140,950 to be paid to shareholders subject to approval at the Annual General Meeting.
The proposed dividend is subject to withholding tax and is payable on 21st September 2023 to shareholders whose names appear on the Register of Members as at close of business on Thursday, 31st August 2023.
Review of the Financial Statements
Income Statement:
- Revenue: The company’s revenue dropped by 5.96% from N2.30bn to N2.16bn. A review of the profit and loss statements showed that in terms of geographical market area, N998mn was earned in the western zone, while N486mn and N683mn respectively were earned in the northern and eastern zones. In terms of product type, N1.08bn was earned from primary school books, while N1.00bn and N75.21mn respectively were earned from the secondary and tertiary.
- Cost of sales: UPL booked N841mn as cost of sales, with most of the cost being for books sold; N650.45mn (2022: N764.75mn).
- Marketing and distribution expenses: The company’s marketing and distribution expenses increased by 13.90% from N446mn to N508mn. The bulk of the expense was on staff emoluments, which gulped N269mn (2022: N224mn).
- Administrative Expenses: The administrative expenses also increased year on year as the company spent N678mn, a 9.53% increase on the N619mn spent in 2022. Again, staff emoluments was the biggest ticket, gulping N262.32mn (2022: N189.94mn).
- Profit Before Income Tax: N222mn, a 38.50% decline from the N361mn posted in 2022.
- Profit After Tax: N142 million, compared to N207 million in 2022.
- Earnings Per Share: N0.32, compared to N0.48 in 2022.
Balance Sheet:
- Total Assets: N4.23 billion, a 1.21% decrease from the N4.28 billion asset it held at the same in 2022. Property, plant and equipment with N1.53bn and inventory with N1.48bn accounted for most of the asset. Cash and cash equivalent stood at N765.87mn (31 March 2022: N841.05mn).
- Total Liabilities: N963mn, 13.55% less than the N1.11bn liability of its book as at 31 March, 2022. Trade payables of N588.19mn and unclaimed dividend of N131.69mn accounted for most of the company’s liabilities.
- Shareholders’ Fund: stood at N3.27 billion, compared to N3.17 billion as at 31st March 2022.
- Retained earnings: N1.81 billion, against N1.71bn as at 31st Mar. 2022.
Cashflow:
- Operating activities: net cash of N81.44 million was generated from operating activities, against N279 million generated in 2022.
- Investing activities: net cash of N113 million was used in investing activities, against N121 million used for the same activity in 2022.
- Financing activities: net cash of N43 million was used in financing activities, against N21 million used in 2022.
- Cash and cash equivalents at the end of the period was N765 million.
About the Company
University Press Plc is a Company domiciled in Nigeria. It was founded in 1949 under the name Oxford University Press, Nigeria.
The Company was incorporated as a limited liability Company in 1978. The Company was quoted on the Nigerian Stock Exchange on 14th August,1978.
The Company’s registered Office is Three Crowns Building, Jericho, Ibadan.
The Company’s products are mainly educational books.
UL has 431,409,504 outstanding shares and a market capitalization of N1.06bn. It’s share price at the time of this report is N2.46.
Oxford University Press U.K is the major shareholder of the company with 60.91 million shares, representing 14.12% of the outstanding shares. They are followed by Lancelot Fund Portfolio Mgt. Limited, who holds 10.11% of the company’s shares.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
