By Blaise Uudunze
TRANSCORP Hotels Plc has announced its financial results for the year ended December 31, 2015 in which it posted a turnover of N13.4 billion and profit before tax of N5.4 billion despite the turbulent economic situation of the year.
With prudent cost management and efficient procurement structure implemented during the year, the company was able to grow its PBT by 12 per cent from N4.6 billion in 2014 to N5.4 billion.
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 in 2015. The asset growth was mainly due to the company’s expansion works in Abuja, Lagos and Port Harcourt.
It had issued a total of N19.8 billion in corporate bonds to fund these projects. The bond accounted for the growth in its liquidity position to N14 billion in 2015. This was on the back of the successful IPO in 2014, a demonstration of investors’ faith in the company’s business as it continues to justify investors’ confidence through its leading 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.
Commenting on the results, the Managing Director and Chief Executive Officer, Transcorp Hotels Plc, Mr. Valentine Ozigbo, said, “Transcorp Hotels Plc, delivered on a strong performance despite the challenges faced in both the domestic and international business environment. Our 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 recognised by the Kaizen Institute International as having the best case of the successful implementation of the Kaizen principles of executing operational excellence.
With expansions plans in the wings, 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 and 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.”