Transcorp Hotels’ Shareholders Approve N2.05bn Dividend, Hail Investment Plans

James Emejo in Abuja

Shareholders of Transcorp Hotels Plc, have approved N2.05 billion as dividend, translating to 20 kobo per ordinary share for the 2023 financial period.

The shareholders also backed the company’s expansion and investment strategies and commended the board and management for leading the entity on the path of profitability.

Speaking at its 10th Annual General Meeting (AGM) in Abuja, Chairman of the company, Mr. Emmanuel Nnorom, said the dividend payout would have been higher but for the investments and expansion plans which are currently underway.

He reiterated the company’s commitment to continuously maximize long-term value for shareholders by accelerating growth, improving margins and allocating resources and capital prudently.

He said the accomplishments in the review year stood as testament to the collective efforts of the hotel’s dedicated team and the unwavering support we have received from various quarters.

In 2023, we demonstrated the immense potential that can be realized through collaboration with stakeholders and the effective utilization of our human resources and processes.

He said, “Our ability to navigate challenges with resilience and innovation was critical to our success. As we step into the new year, our commitment remains unwavering.

The team is motivated and dedicated to surpassing previous accomplishments and we are confident that, with your continued support, we will achieve our set goals in 2024.”

Nnorom noted that in the face of persistent inflationary pressures, heightened economic insecurity and the substantial costs associated with operations, the hotel demonstrated remarkable resilience and concluded the financial year strongly.

He said the Group recorded an impressive gross revenue of N41.5 billion, showcasing a substantial growth trajectory that outpaced the previous year’s revenue of N31.4 billion.

He said the company’s stock price increased by 1022.9 per cent from N6.25 on January 1, 2023, to close at N70.18 on December 31, 2023.

According to him, “This impressive growth led to Transcorp Hotels Plc being the best-performing stock on the Nigerian Exchange (NGX). With a price-to-earnings (P/E) ratio of 228.0x and price-to-sales (P/S) ratio of 26.5x, Transcorp Hotels PLC share price growth was significantly higher than the hospitality industry average movement of 4.4 per cent and the market average movement of 7.4 per cent.

“In addition to the company’s growing fundamentals. including effective management and innovations, a key driver of our financial success has been our unwavering commitment to strategic financial management.”

He said despite the challenges posed by the “prevailing economic climate, our meticulous financial planning and execution proved to be instrumental in mitigating the impact of external factors on our bottom line. This commitment is evident in the reduction of our finance costs throughout the year, reflecting our dedication to optimizing operational efficiency and cost- effectiveness.”

Managing Director/Chief Executive, Transcorp Hotels Plc, Dupe Olusola,said the company was poised for another year of unprecedented success.

She said, “Looking ahead to 2024, I am filled with confidence and optimism about the limitless possibilities that lie before us. As we build upon the foundation of our post successes, I have no doubt that the coming year will witness even greater accomplishments.”

The results showed Transcorp Hotels’ continuous growth, as well as new revenue and profit records set in the year under review.

The company’s revenue grew by 36.2 per cent to N41.46 billion in 2023 from N30.44 billion in 2022, while gross profit grew 37 per cent to N29.79 billion from N21.74 billion in 2022. Profit before tax grew by 104.8 per cent to N9.48 billion from N4.63 billion in 2022.

Olusola said, “With the continued dedication of our stakeholders, the ability to think beyond conventional boundaries, Transcorp Hotels is poised for another year of unprecedented success.”

She expressed her appreciation to the dedicated board, management, staff and shareholders for the impressive financial year.

She said, “Together, we have built on incredible organisation and achieved extraordinary milestones which underscore the strength of our collective efforts and the power of collaboration.”

One of the shareholders, Chief Olatunde Okelana, commended the year-on-year growth and expressed confidence in the future growth of the company.

He said, “I have watched this company grow in leaps and bounds over the years. Returns to shareholders are growing impressively every year, and we owe this to our experienced board and excellent management. I am excited about what the future holds for our company.”

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