Analysts have attributed Union Homes Plc’s fortunes as at the third quarter ended, to improved interest by government agencies and individual investors in real estate activities, particularly in housing projects, which has provided increased patronage to the company in the area of contracts. They further add that increase in revenue coupled with the discipline in the application of funds have helped the company correct the drain in its previous results which were occasioned by high overhead cost.

It would be recalled that the company, last week released on the floor of the Nigerian Stock Exchange, its nine months un-audited financial results ending 31st December 2007. Union homes Plc, the only company in the mortgage sub sector of the Nigerian Stock Exchange, recorded improved fortunes as its earnings growth in the third quarter leaped to 23 kobo, from 7 kobo in the second quarter, representing over 227 percent increase.

In a very conservative sense, analysts put the company forecasted earning per share as at year end at 20 kobo. However, one reason that may justify this forecast is the federal government’s withdrawal of unspent capital votes for the 2007 fiscal year, coupled with the delay in the passage of the 2008 Appropriation Act by the National Assembly, which may have effects on the company’s earnings in the forth quarter. A pattern of sharply undulating income and expenditure on the graphical scale, where it is expected that there would be a plunge in revenue and a peak in expenditure during the last quarter, may also have informed the forecast.

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