Transcorp Hotels grows pat by 17.10%

…As PBT drops by 2.06 %

Transcorp Hotels Nigeria Plc has reassured its shareholders with its recently released 2016 financial statement which shows growth in profit after tax by 17.10 per cent and rise in revenue by 9.53 per cent.

The result released by the Nigerian Stock Exchange (NSE) on Tuesday showed that though profit before tax dropped by 2.06 per cent, while operating expenses rose noticeably, the company was able to withstand the 2016 headwinds with drop in its liabilities and boost in other operating income which rose by 414.43 per cent.

Trading currently at N4.98, with a 52 Weeks High of N5.56 and low of N4.77, Transcorp Hotels has shares outstanding of 7,600,403,900 with market capitalization of N37, 850,011,422.00 as at February 21 2017.

For the accounting period ended December 31 2016, the company’s revenue rose by 9.53 per cent to N15.31 billion, from N13.98 billion recorded in the preceding period of 2015.

Cost of sales rose by 15.70 per cent to N3.89 billion, from N3.36 billion, Gross Profit rose to N11.42 billion from N10.62 billion in 2015 financial year, accounting for 7.58 per cent increase.

Administrative expenses rose by 23.22 per cent for the period ended December 31 2016, closing at N7.32 billion from N5.94 billion posted in the corresponding period of the year 2015.

Other Operating Income rose by 414.43 per cent, closing the period at N560.57million, from N108.97 million recorded in 2015.

Operating profit however, dropped by 2.59 per cent to close the year at N4.66 billion, from N4.78 billion in 2015. Finance income also dropped by 3.23 per cent to N575.59 million, against N594.80 million in 2015.

Profit before Taxation declined by 2.66 per cent to N5.23 billion, from N5.38 billion in year 2015, income tax however dropped by 38.40 per cent to N1.14 billion, from N1.88 billion paid in 2015, However , profit after tax grew by 17.10 per cent to N4.10 billion, from N3.50 billion in 2015.

The company’s total Asset value dropped by 0.63 per cent to N90.76 billion, from N91.34 billion total asset in 2015. Total liabilities also dropped by 4.16 per cent to N37.56 billion, from N39.20 billion in 2015 financial year.

Basic /diluted earnings per share rose by 17.10 per cent to 0.54 per cent from 0.46, while per earnings multiples dropped by 14.60 to 9.24 from 10.82.