Transcorp PLC Doubles Net Brofit to N20.6b
Transnational Corporation of Nigeria (Transcorp) Plc nearly doubled its net profit in 2018 as the conglomerate rode on the back of improved performance across its businesses to deliver its strongest results in recent years.
Key extracts of the audited report and accounts for the year ended December 31, 2018 showed that Transcorp’s turnover rose by 30 per cent while profits before and after tax grew by 82 per cent and 94 per cent respectively.
Group turnover posted a record growth to N104.2 billion in 2018 compared with N80.28 billion in 2017. Gross profit rose from N36.42 billion in 2017 to N48.25 billion in 2018. Profit before tax increased to N22.4 billion as against N12.3 billion while profit after tax jumped from N10.61 billion in 2017 to N20.63 billion in 2018.
The board of directors of the conglomerate has recommended payment of N1.22 billion as cash dividend for the 2018 business year, representing a dividend per share of 3.0 kobo.
Chief Executive Officer, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Valentine Ozigbo, said the performance was a reflection of the group’s sound business strategy.
He noted that the overall performance was boosted by increased revenue from the power and hospitality segments of the group while the group was also able to cut down on its loss from foreign exchange arising from financing activities by 30 per cent.
According to him, Transcorp Power Ltd has continued to explore opportunities created by the eligible customer framework initiated by the Federal Government and it is at an advanced stage of negotiations with a number of eligible customers, which will translate into transactions in the months ahead.
He added that the group’s hospitality subsidiary, Transcorp Hotels Plc, also maintained its history of profitability in 2018, displaying the impact of its recent $100 million upgrade at the Transcorp Hilton Abuja and the immense value placed on the hotel’s best-in-class hospitality services.
“We will continuously strive to deliver significant value to our stakeholders while achieving our long-term goals,” Ozigbo, who took over in January 2019 stated.
Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Tony Elumelu reassured that the group remained committed to its purpose of improving lives and transforming Nigeria by powering industries and businesses while providing local and international guests with unrivalled hospitality services.
He said the group would continue to create sustainable value for all its stakeholders.
Transcorp Group comprises strategic investments in the power, hospitality, agribusiness and oil and gas sectors. Its notable businesses include Transcorp Hilton Abuja, Transcorp Hotels Calabar, Transcorp Power and Transcorp Energy. It is one of the largest quoted companies, in terms of shareholders’ number, with a shareholder base of about 300,000 shareholders.