Transnational Corporation of Nigeria Plc, Nigeria’s foremost investment conglomerate has announced its audited 2015 financial results. The group posted a profit before tax of N3.3 billion for the period under review.
The company’s turnover stood at N40.8 billion and profit before tax of N3.3 billion n in 2015 due to foreign exchange loss which affected the net results of the power business and impairment of investments in the stock market. The group’s total comprehensive income stood at N1.4 billion for the period under review.
Transcorp group operating profit went up by 11 per cent from N14 billion in 2014 to N15 billion.
The company grew its balance sheet during the year. Total asset increased by N32 billion to N202.9 billion, compared to N170.8 billion as at 2014. Increase in plant property and equipment reflects the impact of expansion projects undertaken by Transcorp Hotels Plc. specifically the upgrade of Transcorp Hilton Hotel Abuja and developments of Transcorp Hilton Ikoyi and Port Harcourt.
Tax payable stood at N1.3 billion following the corporate restructuring of the Group with the successful merger of Transcorp Ughelli Power (TUPL) and Ughelli Power Plc (UPP). Shareholders’ funds stood at N87.5 billion.
The group revenue was affected by the non-implementation of the Multi-Year Tariff Order (MYTO) 2015 in the power sector and impacts of forex devaluation on the cost of gas and debt service. The merger of Transcorp Power Ughelli Limited (TUPL) and Ughelli Power Plc (UPP) was successfully completed and the surviving entity renamed as Transcorp Power Limited. The objective of the merger was to eliminate duplicated costs and ensure greater efficiency.
Despite the slow start experienced by the hospitality business in first quarter 2015 occasioned by security concerns regarding the March 2015 general elections, it closed strongly in fourth quarter 2015.
Transcorp Hotels Plc successfully raised two series (Series I and II) of its N30 billion Medium Term Bond Programme. Series I raised N10 billion over a seven-year term at 16.5 percent per annum. Series II raised N10 billion over a seven-year term at 16.5 percent per annum.
The proceeds of the bond issue are already being applied towards the upgrade of Transcorp Hilton Abuja as well as the development of a Multi-Banquet Conference Centre.
As part of its continued effort to enhance shareholder value, the board has recommended to shareholders for approval of a bonus issue of one ordinary share of 50 Kobo for every 20 ordinary shares of 50 Kobo each held by shareholders.
Commenting on the results, Emmanuel Nnorom, President/CEO said: “We displayed relative resilience in 2015 despite various macroeconomic and industry challenges. We continued to maintain top line in 2015 and adapted cost-management measures to keep our administrative expenses within line.
“Our current expansion agenda within the Hospitality, Oil & Gas and Power sectors will provide the platform for sustainable growth within the medium term. Following recent government intervention in the Power sector, particularly with tariff increase, we expect that a strong growth in our power business in 2016. The gas shortages still remain a challenge.
“Management will continue to adapt proactive approach to the challenging business environment, adopting our diversified business model, strong corporate governance and excellent execution of identified strategies to drive our growth in the near term.”