Transcorp Hotels Plc has announced a profit after tax of N4 billion at its 3rd Annual General Meeting which took place at Transcorp Hilton Abuja.
In his review of the 2016 results, the managing director/chief executive officer of the company, Mr. Valentine Ozigbo said Transcorp recorded a 10 per cent growth in gross revenue at N15.31 billion as against N13.98 billion in 2015.
He explained that the performance was largely driven by key events including visits by very high profile guests, many foreign heads of government and representatives of consulates.
He said the company recorded a profit before tax of N5.24 billion in 2016, maintaining 2015 performance of N5.38 billion while the profit after tax for the year surpassed 2015 performance of N3.5 billion by 17 percent to N4.10 billion in 2016.
“Our major priority now is creating value for our stakeholders, improving customer service for our guests and maximizing shareholder value, and we believe very strongly that the foundation that we are laying, with the current upgrade and refurbishment of the Transcorp Hilton Abuja and re-positioning of Transcorp Hotels Calabar, is certain to yield very positive results.
“On this premise, I am happy to add that our turnaround initiatives for Transcorp Hotels Calabar are equally paying off as the Hotel recorded laudable profit for the first time since 2012”. This development, he explained, was predicated on strategy of increasing occupancy and proactive cost management,” he said.
Commenting on 2017 prospects, Ozigbo maintained that the company will keep up with the tempo to sustain the financial performance in 2017, despite the impacts of the temporary airport closure. He also confirmed that the Company is on track to deliver on the ongoing upgrade of Transcorp Hilton Abuja as preparations get on for the 30th anniversary of the Hotel in the 2nd quarter of this year.
Meanwhile, the shareholders commended the management and staff of the company for recording a strong financial and operational performance in the financial year under review with improvements across all indices despite the economic recession which took a hefty toll on hospitality businesses generally.
They attributed the feat to the quality of Transcorp Hilton Hotel as the leading hospitality destination in Nigeria.
They unanimously approved the board’s recommendation of a final dividend of 40 kobo per share, stating that they were confident that as the company continued to make progress, it will not relent in meeting their expectations.
Earlier, Chairman of the company, Olorogun O’tega Emerhor attributed the strong performance recorded to its relentless effort in maintaining market leadership in its flagship property, closing the year with occupancy of 60 per cent, well ahead of competition.
“2016 was a year of notable achievements for Transcorp Hotels Plc, despite the strong economic headwinds. The upgrade of Transcorp Hilton Abuja is underway in line with our commitment to stakeholders to build Africa’s choice hospitality assets,” he said.