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The management of Transcorp Hotels Plc, has proposed 12.45 kobo dividend for the financial year ended December 31, 2017. The register of members closes March 7, 2018, while payment date is March 19, 2018. Annual General Meeting comes up on March 16, 2018 at Transcorp Hilton Hotel Abuja.
Details of the audited financial shows a decline in turnover and profit after tax for the period, even as other operating income rose by N618.158 million or 110.27 percent from N560.571 million in 2016 to N1.178 billion.
According to the result revenue fell to N13.843 billion from N15.311 billion, representing a decline of decline of about N1.468 billion or 9.58 percent, with a breakdown showing that room occupancy remained the biggest contributor to revenue, accounting for N8.508 billion, down from N9.603 billion; followed by food and beverages worth N4.091 billion from N4.528 billion, while income from shop rental recorded the biggest growth as it rose by 108.65 percent to N625.235 million from N299.653 million.
Service charge dropped from N160.049 million in 2016 to N127.785 million, just as other operating revenue from N720.533 million to N489.915 million. Cost of sales dropped slightly to N3.763 billion from N3.889 billion in the prior year, with food and beverages cost of N1.568 billion, a drop from N1.687 billion; and staff costs- N1.468 billion, up from N1.469 billion; leaving gross profit at N10.08 billion, down from N11.421 billion.
Administrative expense rose slightly from N7.323 billion to N7.796 billion, boosted by staff cost of N1.308 billion, which was slightly higher than N1.237 billion; followed by N1.209 billion energy cost, as against N1.119 billion in 2016; and depreciation of N1.018 billion, up from N977.302 million. Directors’ remuneration dropped to N85, from N136.779 million; bank charges increased to N189.059 million from N151.018m; repair and maintenance, N583.433 million from N674.227 million; just as management incentive fees fell to N943.374 million from N1.285 billion.
The other operating income growth was enhanced by net foreign exchange gains of N645.011 million, up from N279.269 million; other income grew from N106.167 million to N181.967 million; and fair value adjustment to investment from N171.535 million to N309.596 million.
Operating profit stood at N3.462 billion from N4.659 billion; just as finance income, fell from N575.585 million to N217.167 million, representing a N358.418 million or 62.27 percent dropped. It was mainly interest on intercompany loan of N186.893 million from N490.013 million, while interest on bank deposits dropped from N85.572 million to N30.274 million.
Profit before tax therefore fell to N3.68 billion, down by N1.554 billion or 29.7 percent from N5.234 billion; while income tax expense dropped to N998.422 million from N1.139 billion; leaving profit after tax at N2.681 billion, down by N1.413 billion or 34.51 percent from N4.095 billion in the corresponding period of 2016.
This translated to Earnings Per Share of 27 kobo, as against the previous 35 kobo, from which the directors have recommended a final dividend of 12.45kobo per share, subject to approval by the shareholders at the annual general meeting; a drop from 40 kobo in 2016.
Photo Caption: Photo Caption: Valentine-Ozigbo-CEO-Transnational Hotels
