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Transcorp records profit before tax of N2.9b

By on June 25, 2013

TRANSNATIONAL Corporation of Nigeria Plc (Transcorp), a diversified conglomerate with strategic interests in the energy, hospitality and agriculture sectors, held its seventh yearly general meeting last week in Abuja.

The company presented its audited financial statements prepared in accordance with International Financial Reporting Standards (IFRS).

Transcorp’s shareholders overwhelmingly approved the company’s audited accounts for the financial year ended 2012 and re-elected Elumelu as Chairman.

During the meeting, the Chairman of Transcorp, Tony Elumelu, stressed the significant progress made by the company in terms of improved operational and financial performance. “The first thing we did when we took over was to build a foundation for sustainable growth, based on strong corporate governance.

We have made new acquisitions like the Ughelli power plant and embarked on an aggressive expansion of our hospitality business. We want to build a business that lasts, whose shares you can give to your heirs.”

During the year, Transcorp led a consortium that won the acquisition bid for the Ughelli Power Plc for USD300m under the Federal Government’s on-going power sector reforms and privatization programme. The initial deposit of 25% has been made and the balance is to be paid on take-over which is scheduled to happen in a few weeks.

In the hospitality sector, Transcorp Hilton Hotel was named the winner of the Hilton Worldwide Sales Team of the Year Prize for 2012 (Group Conference and Events) for the Middle East and Africa Region. This award was in recognition of the hotel as the highest performing hotels Sales Team as measured by specific Hilton Worldwide conference and events measurement metrics.

In his review of the 2012 financial statements, Obinna Ufudo, the President/CEO of Transcorp attributed the company’s impressive financial results generally to the focused execution of the company’s redefined corporate strategy based on income diversification, cost optimization and more effective risk management controls.

‘The company’s 2012 profits before tax increased by N1.6 billion representing a growth of 123% from N1.3 billion to N2.9billion. This unprecedented growth was as a result of the combined effects of a reduction in administrative expenses and a quantum increase in investment income. The cost optimization exercise instituted at the company’s corporate centre continues to yield desired results. This is indeed the beginning of a new era for Transcorp – an era of accelerated and sustainable growth.”