Transcorp Hotels Plc, a leading hospitality company in Nigeria, has announced a dividend payout of N2.048 billion for the financial year ending December 2023. This dividend, amounting to N0.20 kobo per share, has been approved by the company’s Board of Directors in accordance with section 426 of the Companies and Allied Matters Act (CAMA 2020) of Nigeria.
The Board’s recommendation for a dividend of 20 kobo per share was disclosed in a corporate action announcement to the Nigerian Exchange Limited (NGX) and subsequently reported by Nairametrics.
Subject to shareholders’ approval, the dividend will be distributed to shareholders listed in the Register of Members as of the close of business on April 15, 2024. The final ratification of the dividend distribution is scheduled to take place at the upcoming Annual General Meeting.
Shareholders who qualify for the dividend are advised that it is subject to applicable withholding tax. The dividend is slated for electronic payment on April 30, 2024, and will be remitted to shareholders who have completed the e-dividend registration and authorized the Registrar to deposit their dividends directly into their bank accounts.
In light of this announcement, Transcorp Hotels Plc encourages shareholders who have not yet completed the e-dividend registration process to promptly obtain the Registrar’s E-Dividend Mandate Activation Form, available on their website, to ensure seamless dividend payments. Additionally, shareholders holding dividend warrants or share certificates that are either unclaimed or awaiting validation are urged to initiate the e-dividend registration process or reach out to the Registrar for assistance.
Financially, Transcorp Hotels Plc reported robust performance for the fiscal year ended December 31, 2023. According to reports from Nairametrics, the company achieved a profit before tax of N9.412 billion, reflecting significant growth compared to previous periods.
The company’s revenue surged to N42.701 billion, marking a notable increase of 35.81% from the N31.442 billion recorded in the preceding year. Notably, room sales contributed approximately 64% of the total revenue, underscoring the strength of Transcorp Hotels’ core operations.
Recognized as one of the top-performing stocks on the NGX in 2023, Transcorp Hotels Plc experienced a year-to-date share price appreciation of 1.023%, closing the most recent trading session at N97.90. This performance contributed to a year-to-date gain of 39.5%, propelling the company back into the coveted SWOOT category.
Key highlights from the financial results include a substantial surge in pre-tax profit, driven by higher revenue growth outpacing the increase in cost of sales. Noteworthy expense analysis reveals a persistent rise in operational expenses, particularly energy costs, which surged to N2.87 billion in 2023 from N2.3 billion in 2022.
Despite these challenges, Transcorp Hotels Plc maintained a strong balance sheet, with total assets growing by 4.32% year-on-year to reach N125.687 billion. While the company’s net debt stood at N11.7 billion, it’s noteworthy that operating profit adequately covered interest expenses, reflecting the company’s resilience and financial stability amidst evolving market conditions.
Credit: Nairametrics (Text Excluding Headline)
