Transnational Corporation of Nigeria (Transcorp) Plc yesterday highlighted key developments across its business segments with an assurance that the conglomerate is on course for sustained growth and greater returns to investors.
Chief executive officer, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Emmanuel Nnorom, during a visit to the Nigerian Stock Exchange (NSE) yesterday in Lagos, said the conglomerate has continued to witness exciting developments across its business segments.
He said the conglomerate has consolidated its power, agribusiness and hotel and tourism businesses with strategic business partnerships and contracts that should enhance performance in the period ahead.
Transcorp, which is owned by more than 300,000 shareholders, holds a diversified portfolio comprising strategic investments in the power, hospitality, agribusiness and oil and gas sectors. The conglomerate’s notable businesses include Transcorp Hilton Hotel, Abuja; Transcorp Hotels Calabar; Ughelli Power Plc, Teragro Commodities Limited, operator of Teragro Benfruit plant and Transcorp Energy Limited.
Nnorom said The Coca-Cola Company, which is launching a new line of fruit juice made from concentrate, has announced Transcorp as the sole local-concentrate sourcing partner for the line.
Teragro Commodities Limited processes orange, mango and pineapple concentrates for industrial markets at its processing plant in Benue State. The 26,500 metric tonnes capacity Benfruit Plant is the first and only Nigerian-owned and operated juice-concentrate processor of its kind. It first began producing concentrate for Coca-Cola in 2014.
“The partnership reflects Teragro’s ability to deliver a product that meets international quality standards. The company has its ISO 9001 and FSSC22000 and has proven it can compete with concentrates imported from countries such as the United States, Spain and South Africa, among others,” Nnorom said.
He added that Transcorp Hilton Abuja is embarking on a full renovation of its 670 rooms and on- site facilities, the first renovation of its kind for the property since 2003.
According to him, the renovation entails a total overhaul of existing facilities and development of additional facilities. The company plans to refurbish rooms, commission a congress centre, upgrade restaurants and the spa area and use the surrounding territory to commission high-end apartments, offering access to hotel facilities, for wealthy Nigerian individuals.
He pointed out that the Abuja renovation comes alongside other key milestones by the hospitality business including the development of new properties in Lagos this month and Port Harcourt, the addition of a luxury apartment building and the creation of a 5,000 person capacity convention center.
In the power business, Nnorom said the conglomerate has fully achieved its short term post-acquisition operational strategy for the Ughelli power plant as set out in 2013. The strategy was based largely around the recovery of installed capacity at the power plant and included detailed assessment of the turbines on a case-by-case basis to determine the optimal route for return to operations of each of the turbines.
He noted that the development of a sound and executable strategy laid the foundation for the ramping up of generation capacity from 342 megawatts by December 2013 to 610 megawatts by the end of 2014, a 78 per cent increase in available capacity year-over-year and a 300 per cent increase from takeover.
Transcorp recorded a turnover of N41.3 billion for the year ended December 31, 2014, indicating an increase of 120 per cent over N18.8 billion recorded in 2013. Group gross profit also rose by 92 per cent to N27.6 billion as against N14.4 billion in 2013.Group operating profit rose by 33 per cent to N13.6 billion. However, profit before tax declined by 14 per cent to N7.7 billion in 2014 from N9.0 billion in 2013. But total assets for the group grew by 14 per cent from N149.6 billion in 2013 to N170.8 billion in 2014. It declared a dividend per share of 6.0 kobo.
The Nigerian Stock Exchange (NSE) named Transcorp as the most compliant quoted company in 2014. According to the NSE, the most complaint listed firm award is given to the company that demonstrates the highest degree of compliance with the rules and regulations regarding disclosure obligations of listed companies to the Exchange in a particular year. Such a company is also expected to have demonstrated its recognition for the importance of corporate governance.