Transcop Hotel Plc has announced a profit before tax of N5.378 billion for the year ended December 31, 2015, showing an increase of 23 per cent above the N4.340 billion recorded in 2014. Profit after tax stood at N3.497 billion compared with N3.221 billion in 2014.
The profit growth was recorded despite lower revenue for the year. Transcorp Hotel posted a revenue of N13.979 billion, down by 7.5 per cent from N15.105 billion recorded in 2014. However, administrative expenses went down by 20 per cent to N5.943 billion, as against N7.47 billion in 2014.This boosted the operating profit from N4.262 billion to N4.783 billion. Also, Transcorp Hotel recorded a jump of 115 per cent in net finance income from N277 million to N595 million.
The company witnessed a big jump in total assets, which climbed from N69.623 billion to N91.341 billion, showing a growth of 31 per cent.
The directors recommended a dividend of 40.85 kobo per share, up from 37 kobo per share.
Transcorp Hotels raised N19.75 billion bond under a N30 billion Medium-Term Bond Programme in the last quarter of 2015. The bonds were listed on the
Nigerian Stock Exchange (NSE) and FMDQ OTC Securities Exchange last January.
Speaking during the listing of the bond on the two platforms, the Managing Director/CEO of Transcorp Hotels Plc, Valentine Ozigbo, expressed his excitement over the successful completion of the company’s Series 1 & 2 bonds. According to him, Series 1 was oversubscribed by 30 per cent while Series 2 was 98 per cent subscribed a testimony of undeniable investors’ confidence to the achievements and leadership of the company.
“By successfully raising these funds, we now have sufficient funding for our immediate priority projects especially the upgrade and expansion of the multi –award winning and iconic Transcorp Hilton Abuja. “By this listing, we have kept our promise to deliver value to all stakeholders and we will continue to do so,” he said.
The Group CEO of United Capital Plc, sponsor of the bond on FMDQ, Mrs. Oluwatoyin Sanni, said: ‘We are delighted to have played a leading role in the successful execution of the Transcorp Hotels Series I Bond Issue. Coming from a successful 2015, United Capital remains committed to making significant contributions to the success of our esteemed clients. This transaction represents one of the ways we support leading businesses through our expertise in capital raising.