Transcorp Hotel 2017 Financial Year End Report

12 Months Report TRANSCORP HOTELS PLC
	2017 N'000	2016 N'000	change	Year End
Revenue	13,843,470	15,311,879	-10%	December
Profit before taxation	3,680,155	5,234,986	-30%
Profit for the period	2,681,733	4,095,404	-35%
Issued Shares (Units)	7,600,403,900	7,600,403,900
Basic Earnings Per Shares (Kobo)	35.00	49.00	-29%
Last total dividend paid (Kobo)	12.45	40.00	-69%

Transcorp Hotel became the second company after Nigerian Breweries Plc to make its 2017 result public.

Revenue declined by 10% compared to 2016 result. This was as a result of decline in room, food and beverages, service charges and other operating revenue by 11.39%, 9.65%, 20.16% and 32% respectively.

Quarter on Quarter Revenue Analysis

Revenue #000

#2,988,093

#3,211,757

#3,588,046

#4,055,574

Quarter on Quarter PAT Analysis

PAT #000

#388,405

#369,221

#389,898

#1,534,209

 A closer look at the result shows that revenue increase quarter on quarter from Q1 to Q4. On the other hand, the major PAT came in, in Q4 . This was more than the three previous quarters combined. It should be noted that the Country came out of recession in the third  quarter of the year. Businesses like this suffer significantly from economic downturn. We hope that the fortune of the company would be impacted positively by the turn of event in the country. We also expect activity to jump up around political activities as we are nearing election year and politicians would be holding and hosting themselves in some of these hospitality providers  haven which Transcorp Hotel is one of the leaders.

   

The Company declared a dividend of 12.45k for the financial year end 2017 compare to 40k paid same period last year. This comes with a dividend yield of 1.66% which is far below the Market yield. Nigerian Breweries with a better yield and growth in result had not fared well since after its result. We may not see such reaction as regards this stock because of the shareholding structure of the company that currently has Trancorp Corporation and Ministry of Finance holding 83.47% and 11.02% respectively. We deduce that, part of the reason the company is code BLS (below listing standard) by NSE, as its float is not up to the minimum required for such company.

We await how the Market would react to the result and the effect it may have on the prospect of Transcorp as its income from investment had declined significantly based on its investment in Transcorp Hotel.

Summary of Corporate Actions

Date:       21 February 2018

Name of Company: Transcorp Hotel Plc

Year Ended: December 2017

Dividend Declared: 12.45kobo per share

Dividend Payment Date: 19 March 2018

AGM Date: 16 March 2018

Closure Date: 7 March 2018

AGM Venue: Transcorp Hilton Hotel Abuja, 1 Aguiyi Ironsi, Maitama Abuja