Transcorp hopeful of sustained profitability
Transcorp Plc has said the firm is well-positioned for sustainable growth and profitability as key investments begin to reflect in its operations.
The Chairman of the company, Tony Elumelu, while reviewing the company’s performance at the 15th yearly general meeting held in Abuja on Monday, said investments such as the acquisition of a 100 per cent stake in Afam Power Plc and Afam III Fast Power Limited are expected to enhance bottom-line in the nearest future.
Shareholders at the meeting approved one kobo dividend for the 2020 financial year.
Elumelu said: “With Transcorp, the future is extremely bright. As at the time we invested in the company, the main line of business was the hotel. But today, we have invested more than $120 million to refurbish and rehabilitate the hotel because we are long-term investors.
“The value of the hotel has significantly improved. The investment in oil assets is an investment that is building significant value for all of us, especially in terms of diversification from a company with a mono-revenue base of hotel operations.
“By growing our investments in power and hospitality, we were able to continue to develop our businesses and generate the long-term value our shareholders expect.”
He said the company recorded a profit after tax (PAT) of N3.79 billion in 2020, representing 2.35 per cent increase over N3.705 billion achieved in 2019.
The Group also achieved N75.2 billion in turnover while comprehensive income grew by 31 per cent, from N3.44 in 2019 to N4.516 billion in 2020.
The total assets of the Group grew by eight per cent, from N313.1 billion to N338.1 billion while shareholder’s funds increased by five per cent, from N108.7 billion in 2019 to N114.4 billion in 2020.