Transcorp is most compliant company on NSE

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Transnational Corporation of Nigeria (Transcorp), the most diversified investment company in the country, has emerged the most compliant firm among the companies listed on the Nigerian Stock Exchange (NSE).

“This award is significant. When Heirs Holdings took over Transcorp in 2011, one of the core objectives agreed was the need to transform Transcorp to be an institution with world-class corporate governance,” the company said at the weekend.

Transcorp won the coveted award at the weekend, beating Nigerian Breweries plc and others.

The prestigious award won by the most diversified company in Nigeria had been anticipated by analysts given its stellar and impressive financial performance, and its ability to tap into the Nigeria’s robust economy of $510 billion (N80.22trn).

“This award is an indication of a job well done and the approval from the NSE for all the efforts made in the Group by all to achieve this,” said Transcorp.

While other firms are grappling with challenging operating environment, such as insurgency in the North part of the country, huge infrastructure deficits and squeeze in consumer spending, the company continues to strive given the robust growth at top- and bottomline levels.

Transcorp, which invests in companies focus in hospitality, agribusiness and energy sector, recorded an 89 percent increase in profit before tax to N9.7 billion, from N5.15 billion last year, while sales surged by 130.72 percent to N31.40 billion.

Bumper div idends await shareholders of the company as profit after tax surged by 130.72 percent to N8.26 billion compared with N3.56 billion the preceding year.

It should be noted that the company has been giving back to the owners of the business as it declared a dividend of N1.9 billion for the 2013 financial year.

Despite increased input costs, gross profit spiked by 129.45 percent to N21.11 billion from N9.20 billion last year, while operating profit spurted by 112.50 billion in 2014, compared with N5.81 billion the preceding year.

Return on equity (ROE) jumped to 8.89 percent in Q3 2014, as against 4.13 percent last year, while the return on average assets (ROA) moved to 5.23 percent in the period under review from 2.39 percent in 2013.

The Most Complaint Listed Firm award is given by the NSE to the company that demonstrates the highest degree of compliance with the rules and regulations regarding disclosure obligations of listed companies to the exchange in particular year Transcorp plans to raise as much as N15 billion to refinance a power project and expand investments in oil and hotels. It is among the 15 state owned power companies that bought one of the power assets that is the Ugeheli Power plant from the Federal Government of Nigeria.

The Lagos-based company, which runs the Transcorp Hilton Hotel in Abuja, is expanding a partnership in which McLean, Virginiabased Hilton Worldwide Inc. provides its brand names and management.

“Our third quarter 2014 results underscore our determination to achieve our full year 2014 targets. Our commitment to excellence is evident in the significant achievements we have recorded this year in our power and hospitality businesses,” said Emmanuel Nnorom, CEO of Transcorp in the press statement.

The company’s share price closed at N3.72 on the floor of the NSE, while market capitalisation was N143.65 billion.

Source : BusinessDay

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