Transcorp Hotel posts 12 per cent growth in profit

Transcorp Hotels Plc has posted a Profit Before Tax (PBT) of N5.4 billion in its 2015 operations, against N4.6 billion achieved in 2014.

Specifically, the company’s audited result for the year ended December 31, 2015 showed 12 per cent growth in profit before tax from N4.6 billion in 2014 to N5.4 billion.

Its turnover, however, stood at reduced by 8 per cent compared to 2014, when compared with the 2014 figure.

The company also grew its balance sheet remarkably during the year. Total asset increased by about N20 billion or 28 per cent from N69 billion in 2014 to N88 billion during the year under review.

The asset growth, according to Transcorp was mainly due to the company’s expansion works in Abuja, Lagos and Port Harcourt.

The company issued a total of N19.8 billion in corporate bonds to fund its expansion projects.

The company explained that bond accounts for the massive growth in its liquidity position to N14bn in 2015. This, according to the firm was on the back of the successful IPO in 2014.

It added that the success is a demonstration of investors’ faith in the company’s business as it continues to justify investors’ confidence in its performance.

The company’s earnings per share in 2015 was 47kobo while net asset per share amounted to N6.86 similar to what was achieved in 2014.

The Company paid 37kobo per share in the dividend in 2014 and has proposed 40.85kobo per share in 2015 subject to shareholders approval at the company’s yearly general meeting.

Notwithstanding the sharp decline in the price of crude oil, geopolitical tensions along critical trading routes in the world and uncertainty from the political climes,these  the company stated that it believes that Nigeria’s domestic economy has a positive outlook in the long term.

It added that 2015 was generally a good year for the company looking at the turns of event during year both in Nigeria and globally, especially.

Reviewing the performance, the Managing Director and Chief Executive Office of the company,Valentine Ozigbo noted that the company delivered on a strong performance despite the challenges faced by both the domestic and international business environment.

He explained that the performance reflects the stability that has been injected into the Group’s corporate strategy.

“Our company successfully achieved a 100 per cent subscription on its bond issued in the last quarter of the year and was honoured at the World Travellers Award ceremony with five awards making history, while emerging as Africa’s best.

“We were also recognized by the Kaizen Institute International as having the best case on the successful implementation of the Kaizen principles of executing operational excellence.

The Transcorp hotel boss pointed out that with its on-going expansions plan, the company will develop high-end hotels in Ikoyi and Port Harcourt as well as a convention centre and apartment complex in Abuja.

“Renovation of the Transcorp Hilton Abuja is also ongoing. 2016 will usher in additional business lines, specifically food franchise business.

“Transcorp Hotels will continue to leverage on the Transcorp Hilton Brand and strong customer base to provide excellent guests experience and achieve superior returns from the new assets,” he added.