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Transcorp reduces liabilities by N7.3bn, forecasts N7bn profit by 2013

By on December 12, 2013

Transcorp Plc. has reduced its contingent liabilities by N7.3 billion following its reorganisation scheme, even as it projects a Profit Before Tax (PBT) of N7 billion for the year ending 2013.

The Managing Director, Transcorp Plc, Mr. Obinna Ufudo, who disclosed this at the company’s fact behind the figures to the capital market community in Lagos said, “ Transcorp is now back to profitability having identified its problems.

We have been able to resolve 10 cases from 16 cases that were outstanding and impeding on our business. Right now we have about a billion naira contingent liabilities and have settled over N7.3 billion, thus allowing management to focus on growing business.”

According to him, “Transcorp’s performance has been transformed from a loss of N8.88 billion loss in 2007, to a profit after tax (PAT) of N1.257 billion in 2011. This was improved in 2012 with a PAT of N2.527 billion, and by the end of September 2013, Transcorp recorded a profit before tax of N5.1 billion for the first three quarters of the year.”

Speaking, the Chairman of Transcorp, Mr. Tony Elumelu, said, “Transcorp represents the new Nigeria—dynamic, globally competitive, transparent and founded on good governance.

We promised our investors that they would reap the rewards of their patience, and now we have built a company that is not only sharing the tangible fruits of our labour, it is also a vehicle for all Nigerians to gain access to the opportunities that our country offers.”

Elumelu further stated: “Transcorp is one of the few ways through which institutional investors can obtain diversified access to Nigeria’s key economic sectors, from power and hospitality to oil and gas and agriculture. Transcorp’s investments benefits key sectors across the Nigerian economy.

In the agribusiness space, the company is making new investments in food processing subsidiary Teragro, following its recent attainment of global certifications in international safety standards for its juice concentrate products.

In the hospitality sector, Transcorp has commenced the refurbishment and expansion of the award-winning Transorp Hilton Hotel, Abuja. In oil and gas, the company expects to see production start on oil block OPL 281 next year.”

 

 

 

[Vanguard]