Transcorp hotels posts N5.5b profit

Notwithstanding the decrease of eight percent earnings, Transcorp Hotels recorded N5.5billion profit before tax in its operations last year, against N4.6 billion achieved in 2014, even as its teeming shareholders smiled home with a dividend of 40 kobo per share.

Announcing the result at the company’s yearly general meeting at the weekend in Abuja, the Transcorp Hotel Chairman, Olorogun O’tega Emerhor disclosed that the 2015 financial year was quite challenging as a result of the uncertainties witnessed by the sharp decline in oil price world wide, the continuous insecurity and widening gaps between the official and parallel exchange rates of the Naira.

He said Transcorp Hotels experienced an eight percent decrease in gross earnings from N14.5 billion in 2014 to N13.4billion in 2015, following the challenges faced by both the domestic and international business environment.

The company Chairman disclosed that “Profit however, went up by 12 percent to N4.9 billion from the N4.4 billion recorded in 2014. The improvement was due to prudent cost management and efficient procurement strategy implemented during the year, this also grew our profit before tax by 17 percent from N4.6 billion in 2014 to N5. 5 billion, the company profit after tax for the year stood at N3.6 billion [2014,-N3.3 billion].

“The Profit After Tax recorded for the year translates one to a 47 kobo earning per share as against 61 kobo recorded in the 2014 financial year”, he stressed.

On the Hotel’s outlook for 2016, Olorogun Emerhor said the management would commence the renovation of Transcorp Hilton Abuja, starting from the guest rooms, meeting rooms and public areas, adding that already, the upgrade of guests lift is under renovation to be completed before the end of 2017.

He disclosed that the management had commenced with piling works of the Transcorp Hilton Lagos as well as that of Port Harcourt, having expanded the latter site by 2500sq meter and completed clearing and demolition work.

Commenting on the company’s performance, shareholders, whose turnout was impressive at the yearly general meeting, commended the management for giving them dividend for the financial year under focus despite the various developmental efforts the company is embarking on.