UPPC Posts Sh1.22bn Profit but Liquidity Red Flags Emerge as ED Nangoli’s Clock Ticks

Kampala — The Uganda Printing and Publishing Corporation (UPPC), the government’s official printer and publisher of the Uganda Gazette, has delivered a mixed financial script in the latest Auditor General’s report — part success story, part warning signal.

On paper, the opinion is “Unqualified.” The books are fairly presented. Sales are up. Profits are in. Return on Assets has improved.

But scratch beneath the surface and you find swelling trade payables, falling liquidity, unimplemented capital projects and growing concerns over sustainability — all unfolding as Associate Professor Sudi Nangoli approaches the end of his three-year tenure as Managing Director this July.

Nangoli, appointed on July 10, 2023, replaced acting MD Kenneth Oluka, who had stepped in after the dramatic exit of Irene Muwanguzi. Since then, he has operated under the supervision of the Presidency Ministry led by Milly Babalanda.

With his contract expiring soon, the big question now is: has Nangoli done enough to earn another term?

Let’s start with the positives.

UPPC recorded sales of UGX 13.5 billion, a 2% improvement from the previous year’s UGX 13.2 billion. That growth translated into a profit before tax of UGX 1.22 billion — no small achievement in a competitive printing industry increasingly disrupted by digital publishing.

Even more impressive, the Corporation’s Return on Assets rose from 3% in FY 2023/24 to 4% in the year under review. The increase was largely driven by a 74% surge in sales revenues from Gazette adverts and subscriptions.

An internal source noted, “The Gazette remains a goldmine. When government notices increase, revenue grows.”

Outstanding receivables also dropped significantly — from UGX 6.44 billion to UGX 3.28 billion, a 49% reduction. That is a UGX 3.15 billion improvement. On the face of it, this signals stronger debt collection efforts.

But here’s the twist: of the UGX 3.28 billion still outstanding, UGX 2.1 billion — 64% — is owed by various Ministries and Government agencies.

In other words, government owes government.

A finance analyst told RedPepper, “You can reduce receivables, yes, but when most of what remains is tied up in public sector debt, cash flow pressure doesn’t disappear.”

And that pressure is showing.

Trade payables rose to UGX 11.16 billion as at 30th June 2025, representing a 7% increase from UGX 10.47 billion the previous year. Suppliers are waiting longer to be paid. Meanwhile, the Corporation’s liquidity position has deteriorated sharply.

The current ratio fell from 1.4 in FY 2023/24 to 0.7 in the year under review. For context, an ideal ratio ranges between 1.5 and 2, indicating sufficient liquidity to cover short-term obligations.

A ratio of 0.7 means UPPC has only 70 cents in current assets for every shilling of short-term liability.

The decline was attributed to an increase in trade payables from UGX 1.2 billion to UGX 2.6 billion and a reduction in current assets from UGX 9.3 billion to UGX 7.7 billion.

In a broader analysis of fifteen public corporations and state enterprises, UPPC was listed among five entities with current ratios below the desirable threshold of 1.5 — alongside UBC, UETCL, URC and UPL.

“Profitability is one thing,” an economist explained. “Liquidity is survival. A company can post profits and still struggle to pay its bills on time.”

Capital investment performance was also mixed.

Out of nine key capital activities budgeted at UGX 702 million, five activities with actual expenditure of UGX 504.9 million were fully implemented. That is commendable execution.

However, four activities with a combined budget of UGX 232.9 million were not implemented at all.

Why? Delays? Cash constraints? Strategic reprioritization? The audit flags the non-implementation but leaves management to explain the deeper cause.

The broader profitability analysis of public corporations highlighted structural challenges affecting UPPC’s performance. Low performance was attributed to equipment downtime, extended client review cycles and non-compliance by some Ministries, Departments and Agencies (MDAs) with the Presidential directive requiring them to award UPPC 40% of all printing jobs.

If MDAs bypass UPPC, the Corporation loses guaranteed revenue streams.

A senior insider remarked, “You cannot expect UPPC to compete fairly when government entities themselves ignore the 40% directive.”

Equipment downtime also raises operational efficiency questions. Printing is capital-intensive. When machines stall, revenue stalls.

So who is to blame?

Supporters of Nangoli argue that he inherited a corporation that had experienced leadership turbulence and market pressure. They point to improved sales, rising Gazette revenues, reduced receivables and profitability as signs of steady hands at the wheel.

Critics counter that rising trade payables and a plunging current ratio signal mounting financial strain under his watch. “A profit of UGX 1.22 billion looks good in headlines,” one governance observer said, “but liquidity below 1 means stress beneath the surface.”

There is also the matter of strategic positioning. In an era of digital transformation, is UPPC innovating fast enough? Are investments in new printing technology and digital platforms being prioritized, or is the Corporation relying too heavily on traditional Gazette income?

As July approaches, the Presidency Ministry will have to weigh the numbers carefully. On one side: an Unqualified audit opinion, higher sales, improved ROA and reduced receivables. On the other: swelling payables, weak liquidity, unimplemented capital projects and structural compliance challenges.

Is it time to crack the whip on Nangoli, or does the data show a reformist leader navigating a difficult sector?

For now, UPPC’s report card reads like a balanced ledger — gains in profitability, warnings in liquidity.

Whether Associate Professor Sudi Nangoli earns another term may depend on one simple question: are these figures signs of recovery in progress — or early symptoms of deeper financial strain?

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