BUSINESS 

University Press alerts investors on profit decline

University Press (UP) Plc has alerted investors that its performance may fall short of projection as the printing and publishing company struggles with declining demand and piracy.

In a profit warning, directors of University Press stated that their review by the period ended November 30, 2019 already showed a shortfall of N800 million between the projected and actual turnover for the third quarter ending December 31, 2019.

According to the company, preliminary review showed a turnover of N1.8 billion at the end of November, lagging considerably behind N2.6 billion projected for the period ending December 31, 2019.

“The drop in revenue will directly affect the company’s profit which may lead to the non realisation of the company’s revenue budget and by extension its projected profit,” the company stated.

Directors of the Ibadan, Oyo State-based company attributed its inability to achieve projected results to increased erosion of its revenue by pirates, noting that many of its products had been pirated.

The company also blamed its declining performance on what it described as “economic realities in the country”, which led to low demand for its products.

UP added that expected purchase of books from the company by the various tiers of government and their agencies did not materialize.

The company, however,  expressed optimism on its future, pointing out that the board and management are committed to measures and strategies that will ensure long-term growth.

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