Despite the harsh economic climate, which impacted negatively on the hospitality industry, Transcorp Hotels Plc recorded an increase in profit after tax from N3.6bn in 2015 to N3.7bn in the 2016 financial year.
The Chairman, Board of Directors, O’tega Emerhor, gave the figures while speaking at the third annual general meeting of the hotel.
He said that while the restriction on access to foreign exchange had an unfavourable multiplier effect on cost of goods and services in the country, the company was able to survive the biting hardship through doggedness and efficient service delivery.
For instance, he said in the 2016 financial period, turnover of N14.6bn surpassed the N13.4bn turnover in 2015 by nine per cent.
He said as a result of the improved financial performance, the board of directors recommended that a dividend of 40 kobo per share be paid to the shareholders for the 2016 financial year.
He said, “The country is currently facing its worst economic crisis in more than 20 years. Nigeria’s dire economic situation emanated from lack of timely and proper policy direction , falling commodity prices, less foreign direct investment’ chronic electricity shortages and reduced revenue. 2016 was a year of notable achievements for Transcorp Hotels despite the strong economic headwinds.
“Our shareholders will be glad to know that we are recommending a final dividend of 40 kobo per share and we are confident that as the company makes progress, we will continue to meet your expectations.”
The Managing Director/Chief Executive Officer, Mr. Valentine Ozigbo, while speaking at the AGM said the company had maintained a stable balance sheet consistent with the prior year adding that total assets was N88bn.
He said, “We strived to maintain market leadership in our flagship property, Transcorp Hilton Abuja closing the year with 60 per cent occupancy well ahead of competition.”
Shareholders that attended the event approved the financial statement commended the management for the improved financial performance despite the harsh economic climate.