By NKIRUKA NNOROM

For the first time since its listing on the Nigerian Stock Exchange, NSE, in 2007, Transnational Corporation of Nigeria, Transcorp Plc, has indicated readiness to reward its loyal shareholders with gross dividends of N1.93 billion, which translates to five kobo per share for the year ended December 31, 2013.

The dividend, which is subject to shareholders’ approval at the next Annual General Meeting, has been receiving applause from the investing public. For the shareholders, who had waited through the capital market crash that nearly wiped out their investment, not just in Transcorp, but in the entire market, the dividend proposition and the amount to be paid is ‘a good start.’

Commenting on the dividend and the accompanying result for the year, Ambassador Olufemi Timothy, President, Renaissance Shareholders Association, hailed the company’s management for the decision, saying, “It is a good start; we thank God that at last, our investment is yielding returns. Thanks to the Board and management. It is okay; it is a breakthrough.”

Olufemi, however, called for an increase in the amount to be paid in subsequent years.

Also, Gbadebo Olatokunbo, a founding member, Nigeria Shareholders Solidarity, Association, said the take-over of majority shares in the company by Tony Elumelu, was the tonic the company needed to pick up.

He said, “It wasn’t a surprise that it was unable to perform before now because it was established by the Federal Government with very good intention but was made to look and be like a government agency while it was administered or handed over to non-tested hands in business management.

“The positive changes came about with managers of business taking charge of the company and several good things were initiated. Though the result might take time to materilaise because positive changes require long time planning and execution, but for Transcorp, the sky is the limit.”

Transformation initiatives

In the last one year, the management of Transcorp, chaired by Mr. Tony Elumelu, has increased attempt at changing the fortune of the company through adoption of some initiatives.

As part of efforts to accelerate the growth strategy, the company in 2013 undertook a rights issue to the existing shareholders of N13 billion, which was later over subscribed by 32.08 percent. The proceeds of the offer, according to rights circular, was meant to refinance the company’s investments in the acquisition of Ughelli Power Plc and deepen its play in the hospitality and oil and gas sectors.

Following the successful rights issue, it completed acquisition of the 1000MW capacity Ughelli Power Plc through its subsidiary – Transcorp Ughelli Power Ltd (TUPL) with a plan to raise output from the current 160MW to at least 1,500MW, over the next three to five years.

Also, during the year, it signed agreement with Hilton Worldwide, to commence the development of a 300 room five-star hotel in Ikoyi, Lagos, to complement the flagship Transcorp Hilton in Abuja. It also completed the acquisition of a site in Port Harcourt for the development of another 300 room five star hotel.

The management agreement is expected to be signed in Q1, 2014, while construction will commence by the second quarter. Additionally, it began the renovation and upgrade of the Transcorp Hilton, Abuja, Nigeria’s premier five-star hotel, a project that would see the addition of a 5,000 seat capacity conference facility and 200 serviced luxury apartments to the hotel.

The Teragro-Benfruit plant in Makurdi, Benue State, which commenced operation two years, received the ISO 9001:2008 (Quality Management System) and FSSC 22000:2005, thereby reinforcing the quality standard, while it continued to develop its oil and gas strategy, with our existing oil block, OPL 281, expected to begin production before the end of 2014.

2013 financial statement

Transcorp ended the year 2013 with revenue growth of 42 percent to N18.8 billion from  N13.2 billion recorded in the corresponding period in 2012. Profits before tax rose by 129 percent from N3.9 billion in 2012 to N9.0 billion in 2013.

Profit after tax rose to N6.957 in comparison to N2.527 billion achieved in 2012, while earning per share for the period rose to 12.17kobo from 4.04kobo in equivalent period of 2012. Total assets grew to N149.464 billion as against N99.557 billion.