The Chairman of Transcorp, Tony Elumelu, addressing shareholders during the 2016 yearly general meeting in Lagos, said the company is well positioned to meet its medium to long term strategic business targets
Transnational Corporation of Nigeria, Plc (Transcorp) has pledged to enhance shareholders value on investment through robust dividend pay-out in the years ahead.The assurance came as group recorded huge loss before tax of -N1.13 billion due to dollar acquisition finance facility, which made it commend the Central Bank of Nigeria, (CBN), on the recent dollar liberalisation that has helped eased pressure on the foreign exchange (forex) market.
The Chairman of Transcorp, Tony Elumelu, addressing shareholders during the 2016 yearly general meeting in Lagos, said the company is well positioned to meet its medium to long term strategic business targets. This is due to the recent dollar liberalisation policy, which is already yielding results by helping the company to meet its forex obligations.
?When we took over transcorp that was the first time we paid dividend, and we will continue to pay dividend and do bonus issue to shareholders, and we will not do less. We are impressed with what government is doing presently.
?We hope that the fund they just approved would help to improve our liquidity. The foreign exchange policy of the government now is very good, and it is even helping us already because we are able to meet our foreign exchange obligations.
?It is highly commendable; we commend the central bank governor and the federal government. Indeed, the future is looking bright. Our shareholders this year will go home smiling,? Elumelu added.
Reviewing it 2016 performance, he said despite the top line growth of 46 per cent to N59.43 billion, the forex losses of N18.48 billion for Transcorp Power in respect of its dollar acquisition finance facility affected the bottom line.
According to him, the group realised loss before tax of -N1.13 billion against N2.03 billion profit in 2015, due to the forex losses, but he assured of prospect of paying dividend to the shareholders within the 2017/2018 financial year.
Also speaking at the meeting, the President/Chief Executive Officer, Transcorp Plc, Emmanuel Nnorom, said: ?We believe that this year things are turning more positive for most of the businesses and like I mentioned, our first quarter result is coming out good. We expect that the rest of the year will be good.
?The factors that affected us last year, was majorly the foreign exchange devaluation that made us experience losses of about N18.7 billion appears to be now something under control as FX is now more readily available, and we expect that the current steps now being taken by the CBN will turn out positively for everyone in the economy.?
Nnorom said the firm?s ongoing projects in some of its subsidiaries; particularly the hotel and power sectors would help in driving its financial performance in the near term.
?For the power business, we have 620MW of installed capacity now, and two more turbines are coming up that will bring it to 850MW by the end of this year. ?So, there are many positive developments all around us, and I can assure shareholders that the result of this year will look very positive for us. Our plan for our subsidiaries is continuous improvement. For the hotels, we are doing the upgrade of the rooms. We want to complete that before October this year,? he added.