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Transcorp Hotels, Newrest ASL to pay N1.3bn dividend

Transcorp-hotel

Transcorp Hotels and Newrest ASL have become the early flyers to announce their audited financial statements for the period ended December 31,2018, statements sent to all the stakeholders through the management of the Nigerian Stock Exchange have shown.

According to a release signed by Helen Iwuchukwu, group company secretary, Transcorp Hotels is to pay a final dividend of 15 kobo per share for shareholders whose names appear in the register of members as at the close of business on February 27, 2019.

Based on the company’s ownership structure, Transcorp Corporation of Nigeria Plc, with 83.47 percent stake in the Transcorp Hotels, is entitled to N951.61 million from the total dividend announced, while the Ministry of Finance Incorporation, which controls 11.02 percent stake will rake in N125.63 million from the final dividend.

“On 19 March 2019, dividends will be paid electronically to shareholders whose names appear on the Register of Members as at 27 February 2019 and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts”, the statements read. Based on 7.6 million ordinary shares of the company, the 15 kobo dividend per share amounted to N1.14 billion. The company’s Annual General Meeting will hold at the Trancorp Hotel Abuja on March 15,2019.

In the same manner, Newrest ASL has announced 20 kobo dividend per share, for the financial ended 31 December 2018. Meanwhile, only shareholders whose names appear in the register of members as at the close of business on April 26, 2019 will benefit from this corporate action.

Based on the number of its outstanding shares, shareholders of Newrest ASL will smile to the bank to the tune of N126.8 million. The company has five major shareholders, each of which has its shareholding above 5 percent. Newrest Group controls 22.98 percent of the company’s shareholding structure. Rifkind Limited and Roswello Limited control 17.18 percent each. Harrowditch Limited has 14.31 percent stake in Newrest ASL while Rical Enterprises Limited controls 9.99 percent stake in the company. Altogether, these institutional shareholders control 81.64 percent of the company’s shareholding structure.

In spite of the sluggish growth in the economy, as demonstrated by the nation’s gross domestic product (GDP) which hovered around 2 percent, Transcorp Hotels realised N17.42 billion as gross revenue in the financial year ended December 31, 2018. That was 25.8 percent higher than N13.84 billion it made in corresponding period in 2017.

Cost of sales rose by 21 percent from N3.76 billion in full year 2017 to N4.54 billion in 2018. Nevertheless, cost of sales to revenue fell to 26 percent compared with 27 percent in similar period in 2017, implying that it was cheaper for the firm to make a naira revenue in 2018 compared with 2017.

Transcorp Hotels’ operating profit was increased by 45 percent to N5.04 billion up from N3.48 billion in corresponding period in 2017. Profit for the year was at N3.71 billion, an increase of 38 percent when compared with N2.68 billion the company realised in 2017.

Newrest ASL increased its gross revenue for the period ended December 31, 2018 by 38 percent from N3.92 billion in 2017 to N5.43 billion in 2018. Total comprehensive income for the period stood at N1.49 billion, an increase of 258 percent over N415.9 million made in similar period in 2017.

As at the close of business last Friday, the share price of Transcorp Hotels closed at N6.10 per share, the same level it was as at the beginning of this year while Newrest ASL ended the week at N6.45 per share, representing -18.4 percent year to date returns.

 

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