Lagos, Nigeria – March 29, 2016 - Transnational Corporation of Nigeria Plc (Transcorp), Nigeria’s foremost
investment conglomerate has announced its audited 2015 Financial
Results. The Group posted a profit before tax of N3.3bn for the period under review.
Transcorp Group Operating Profit went up by 11% from N14bn in 2014 FY to N15bn. Its posted turnover of N40.8bn
and profit before tax of N3.3bn 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 N1.4bn for the period under review.
The company grew its balance sheet during the year. Total asset increased by N32bn to N202.9bn, compared to N170.8bn as at 2014 FY. 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 N1.3bn 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 N87.5bn.
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 Q1 2015
occasioned by security concerns regarding the March 2015 general
elections, it closed strongly in Q4 2015. Transcorp
Hotels Plc successfully raised two series (Series I and II) of its
N30bn Medium Term Bond Programme. Series I raised N10bn over a 7-year
term at 16.5% p.a. Series II raised N10bn over a 7-year term at 16.5%
p.a. The proceeds of the Bond issue is 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 Group
Board has recommended to shareholders for approval of a bonus issue of 1
Ordinary Share of 50 Kobo for every
20 Ordinary Share 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.”
About Transcorp
Transnational
Corporation of Nigeria Plc (Transcorp) is a publicly quoted
conglomerate with a diversified shareholder base of over 300,000
investors. Our portfolio comprises strategic investments
in the power, hospitality, agribusiness and oil and gas sectors. Our
notable businesses include Transcorp Hilton Hotel, Abuja; Transcorp
Hotels Calabar; Transcorp Power Limited, Teragro Commodities Limited,
operator of Teragro Benfruit plant - Nigeria’s first-of-its-kind
juice concentrate plant; and Transcorp Energy Limited.
For more information about Transcorp, please visit www.transcorpnigeria.com
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