Transnational Corporation of Nigeria Plc (Transcorp) Plc has distributed 1.936 billion ordinary shares as bonus shares to its shareholders.
The shares have been credited to the shareholding accounts of the shareholders with the Central Securities and Clearing System and listed on the Nigerian Stock Exchange (NSE).
The supplementary listing of the 1.936 billion shares raised the entire issued shares of Transcorp to 40.657 billion ordinary shares of 50 kobo each. The supplementary listing enables the owners of the bonus shares to trade on them at the NSE.
The bonus shares were distributed on the basis of one bonus share for every 20 ordinary shares of 50 kobo each held by each shareholder. The bonus shares were valued at N2.15 billion. The bonus shares were part of the highlights of the audited report and accounts of Transcorp for the year ended December 31, 2015.
Commenting on the performance of the conglomerate during the period, chief executive officer, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Emmanuel Nnorom, said the group displayed relative resilience in 2015 despite various macroeconomic and industry challenges.
He noted that the conglomerate continued to maintain top-line in 2015 and adapted cost-management measures to keep its administrative expenses within line.
Nnorom pointed out that the group current expansion agenda within the hospitality, oil and gas and power sectors will provide the platform for sustainable growth within the medium term, noting that recent government intervention in the power sector, particularly with tariff increase, will spur strong growth in the group’s power business in the year.
He, however, lamented that gas shortages has remained 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,” Nnorom said.
Key extracts of the audited report and accounts showed that turnover stood at N40.75 billion in 2015 as against N41.34 billion in 2014. Gross profit dropped from N27.63 billion to N24.33 billion. Profit before tax declined from N7.73 billion to N3.32 billion while profit after tax slumped to N1.44 billion in 2015 as against N3.30 billion in 2014.
The group, however, grew its balance sheet during the year with total asset increasing by N32 billion N202.9 billion in 2015 as against N170.8 billion in 2014.
The report indicated that the 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 developments 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 N87.5 billion.
The group blamed the depressed bottom-line on foreign exchange loss which affected the net results of the power business and impairment of investments in the stock market.
Nnorom said 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.
He noted that the merger of Transcorp Power Ughelli Limited (TUPL) and Ughelli Power Plc (UPP) was successfully completed and the surviving entity renamed as Transcorp Power Limited adding that the objective of the merger was to eliminate duplicated costs and ensure greater efficiency. The Nation.
