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Transcorp Hotels proposes N1.14billion full year dividend payout

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The directors of Transcorp Hotels Plc have recommenced the payment of a dividend of 15kobo per share amounting to N1.14billion for the financial year ended December 31, 2018. This is a remarkable increase when compared to 12.45kobo per share that amounted to N947million the company paid in 2017.

Transcorp Hotels Plc has released its financial report for the year ended December 31, 2018. The results at the Nigerian Stock Exchange (NSE) show that the company reported revenue of N16.47billion in 2018 as against N12.96billion in 2017. The company is engaged in the hospitality industry; particularly the rendering of hotel services.

Transcorp Hotels Plc maintains controlling interests in the following companies, referred to as portfolio companies –Transcorp Hotels Calabar Limited; Transcorp Hotels Port Harcourt Limited; and Transcorp Hotels Ikoyi Limited.

Gross Profit increased to N12.24billion in 2018 as against N9.52billion in 2017. Profit Before Tax (PBT) increased to N5.18billion in 2018 from N3.16billion in 2017; while profit after tax (PAT) stood at N3.87billion in 2018 from a low of N2.63billion in 2017.

At N6.10per share, Transcorp Hotels Plc market capitalisation is in excess of N46.362billion on shares outstanding of 7,600,403,900 units.

Following a successful IPO, the company was in January 2015 listed on the Nigerian Stock Exchange. The shares of the company have continued to be traded on the floor of the Exchange.

The Nigerian Stock Exchange in its X-Compliance Report, a transparency initiative of the Exchange which is designed to maintain market integrity and protect the investors by providing compliance related information on all listed companies tagged Transcorp Hotels Plc as a company operating “Below Listing Standard (BLS)” because of its deficiency in free float.

Free float represents the portion of shares of a company that are in the hands of public investors as opposed to locked-in stock held by controlling-interest investors.  Transnational Corporation of Nigeria Plc, the parent company of Transcorp Hotels Plc owns 6,344,100,000 units of the shares in the company, representing 83.47percent; while the Ministry of Finance Incorporated owns 837,900,000 units of shares of Transcorp Hotels Plc, representing 11.02percent. Transcorp Hotels Plc has just 6percent of its shares in the hands of the public and the NSE gave it till May 18, 2020 to meet up the regulatory requirement.

Companies listed on The Exchange are required to maintain a minimum free float for the set standards under which they are listed in order to ensure that there is an orderly and liquid market for their securities. The free float requirement for companies on the ASEM Board is a minimum of 15percent of issued and fully paid up shares while that of the Main Board is a minimum of 20percent of the issued and fully paid up shares.

Companies listed on the Premium Board are also required to have a free float of a minimum of 20percent of issued and fully paid up shares or the value of its free float is equal to or above N40 billion on the date The Exchange receives the Issuer’s application to list.

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