Capital Hotel records 5.7% increase in full year profit

• To raise additional N44b for facility upgrade

Capital Hotel Plc has recorded a Profit After Tax (PAT) of N401.7 million in its 2019 operations, against N379 million made in the corresponding period in 2018.

Addressing stockbrokers at the company’s virtual meeting on ‘Facts Behind the Figures’ yesterday, the Chairman, Anthony Idigbe, attributed the 5.75 per cent rise in profit to efficient cost control measures adopted by the management to enhance the firm’s growth.

At the event, he unveiled the company’s plan to raise additional N44 billion by way of public offer through debt or equity to enable it refurbish existing assets.

He briefed stockbrokers on the board’s upgrade and turnaround plans for the hotel, stating that the company will invest in renovation of other rooms and public areas on completion of the first tranche of 97 rooms of the facility.

According to him, the renovation is currently funded from internally generated revenue to enhance the hotel’s outlook and make it a hospitality destination in Abuja and its environs.

Idigbe said: “We have improved the capacity of our management. We are able to push the direction of the operators to manage cost well and drive the strategy of the company towards best practices and good corporate governance.

“We are looking at options of public offer of shares because we are considering the need for assurance that the money will come in bulk. We are working in different options, including debt. We are talking to regional and international institutions to get long-term debt capital.”

The chairman assured the stakeholders that with the composition of the board, made up of experienced persons from various sectors of the economy, the company would become one of the best in the industry to meet shareholders’ expectations in post-pandemic era.

On the dispute in the company, Idigbe said: “Our shareholders’ dispute has been handled peacefully. We have peaceful board in the last three years. We assure the exchange that we would utilize opportunities in the bourse to drive private equity available.”He also announced that the company’s forensic audit had been concluded and was awaiting regulatory response.

The Chief Executive Officer of the Nigerian Stock Exchange (NSE), Oscar Onyema, applauded the management of the company on efforts towards improving business operations and restoring investors’ confidence. He said the exchange would continue to support listed companies to meet strategic objectives and provide products that align with their various operational needs.