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Transcorp Hotels’ finance income jumps nine-fold in one year

Transcorp Hotels’ finance income jumps nine-fold in one year

The finance income of Transcorp Hotels Plc, the hospitality subsidiary of Transnational Corporation of Nigeria, has surged by 868 percent in one year, according to a BusinessDay analysis.

In the company’s latest unaudited financial statement, its finance income rose to N84.4 million last year from N8.72 million in 2022.

Revenue also increased to N42.7 billion from N31.4 billion and after-tax profit rose to N6.1 billion from N2.6 billion.

The hotelier’s cost of sales grew to N12.09 billion from N9.05 billion. Other operating income dropped to N736.3 million from N969.2 million. Impairment losses on financial assets declined to N37.7 million from N64.27 million.

Finance costs declined to N3.88 billion from N4.14 billion. Operating expenses grew to N18.1 billion from N14.63 billion. The firm paid an income tax of N3.3 billion, up from N1.91 billion.

Non-current assets dipped to N108.28 billion from N110.4 billion while current assets increased to N14.9 billion from N10.1 billion.

Total equity rose to N68.9 billion from N62.8 billion.

Non-current liabilities dipped to N25.7 billion from N28.4 billion. Current liabilities rose to N31.1 billion from N29.3 billion.

Net cash from operating activities dipped to N14.6 billion from N11.5 billion during the period reviewed. Net cash used in investing activities stood at a negative of N3.99 billion from a negative of N6.91 billion.

Net cash used in financing activities stood at a negative of N7.8 billion from a negative of N4.7 billion year-on-year.

Inventories rose to N645.6 million from N616.6 million. Total trade and other receivables increased to N4.3 billion from N3.2 billion.

Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days. Other receivables generally arise from transactions outside the provision of hospitality and related activities in the day-to-day operations of the group which include advances to contractors, advances to staff, and so on.

“Interest may be charged at commercial rates where the terms of repayment exceed six months. Collateral is not normally obtained. All other receivables are due and payable within one year from the end of the reporting period,” the firm said.

Cash and cash equivalents at the end of the year rose to N7.2 billion from N3.3 billion. Transcorp Hotels’ earnings per share rose to N0.60 from N0.26.

In Transcorp Hotels’ expansion plans, IT has arranged about $110 million in financing and cash with partner Heirs Holdings to build a 300-room luxury hotel in the Ikoyi district of central Lagos.
The flagship Transcorp Hilton Abuja aims to open a 5,000-seater capacity event centre close to the hotel. The hotel has just added a premium spa. The city’s new convention centre, the 1,200-person capacity Congress Hall, is close to the property, too.

“Expansion, expansion, expansion, that is the key focus for us,” Dupe Olusola, CEO and managing director of Transcorp Hotels said in a statement.