By Dipo Olowookere
UAC of Nigeria Plc has announced its intention to liquidate its assets at the Warm Spring Waters Nigeria Limited.
In 2002, UAC Nigeria promoted the Warm Spring Waters Nigeria Limited in partnership with the Ekiti State government and the Ikogosi-Ekiti community on the production of premium quality spring water under the ‘Gossy’ label.
UAC Nigeria controls 76 percent stake in the firm, which commenced production in 2003.
In a statement issued today, UAC Nigeria lamented that since the company kicked off production, it has been operating at loss.
It attributed this to the rural location of the plant at the source of the Ikogosi Spring as well as associated logistics challenges.
It further noted that the 100 percent reliance on company-generated power and difficult operating environment also contributed to the company’s woes.
In the statement, UAC Nigeria stressed that the contribution of Warm Spring Waters Nigeria Limited to the Group’s results was less than 1 percent, delivering a turnover of N369 million and loss before tax of N78 million in the 9 months ended September 30, 2017.
As a result of this, “The shareholders of the company at a meeting held on February 6, 2018, resolved to appoint a Liquidator to wind up the affairs of the company and distribute its assets.”
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