Transnational Corporation of Nigeria Plc (Transcorp) has announced its audited 2015 Financial Results. The country’s foremost investment conglomerate posted a profit before tax of N3.3bn for the period under review, according to the results released Tuesday in Lagos.

Transcorp Group Operating Profit went up by 11% from N14bn in 2014 FY to N15bn. Its posted turnover of N40.8bn and profit before tax of N3.3bn in 2015 due to foreign exchange loss which affected the net results of the power business and impairment of investments in the stock market. The Group’s total comprehensive income stood at N1.4bn for the period under review.

The company grew its balance sheet during the year. Total asset increased by N32bn to N202.9bn, compared to N170.8bn as at 2014 FY. Increase in Plant Property and Equipment reflects the impact of expansion projects undertaken by Transcorp Hotels Plc, specifically the upgrade of Transcorp Hilton Hotel Abuja and development of Transcorp Hilton Ikoyi and Port Harcourt.

Tax payable stood at N1.3bn following the corporate restructuring of the Group with the successful merger of Transcorp Ughelli Power (TUPL) and Ughelli Power Plc (UPP). Shareholders Funds stood at N87.5bn.

The Group Revenue was affected by the non-implementation of the Multi-Year Tariff Order (MYTO) 2015 in the Power sector and impacts of forex devaluation on the cost of gas and debt service. The merger of TUPL and UPP was successfully completed and the surviving entity renamed as Transcorp Power Limited. The objective of the merger was to eliminate duplicated costs and ensure greater efficiency.

Despite the slow start experienced by the Hospitality business in Q1 2015 occasioned by security concerns regarding the March 2015 general elections, it closed strongly in Q4 2015. Transcorp Hotels Plc successfully raised two series (Series I and II) of its N30bn Medium Term Bond Programme. Series I raised N10bn over a 7-year term at 16.5% p.a. Series II raised N10bn over a 7-year term at 16.5% p.a. The proceeds of the Bond issue is already being applied towards the upgrade of Transcorp Hilton Abuja as well as the development of a Multi-Banquet Conference Centre.

As part of its continued effort to enhance shareholder value, the Group Board has recommended to shareholders for approval of a bonus issue of 1 Ordinary Share of 50 Kobo for every 20 Ordinary Share of 50 Kobo each held by shareholders.

Commenting on the results, Emmanuel Nnorom, President/CEO said: “We displayed relative resilience in 2015 despite various macroeconomic and industry challenges. We continued to maintain top line in 2015 and adapted cost-management measures to keep our administrative expenses within line. Our current expansion agenda within the Hospitality, Oil & Gas and Power sectors will provide the platform for sustainable growth within the medium term. Following recent government intervention in the Power sector, particularly with tariff increase, we expect that a strong growth in our power business in 2016.” The Gas shortages still remain a challenge.

Management will continue to adapt proactive approach to the challenging business environment, adopting our diversified business model, strong corporate governance and excellent execution of identified strategies to drive our growth in the near term.”

•Photo shows Transcorp Group President/CEO, Emmanuel Nnorom.