The Nation Newspaper

Category: Equities

  • ‘13.9m investors’accounts in stock market’

    • NSE launches mutual fund trading platform

    A total of 13.9 million investors’ accounts are in the  stock market’s central depository, the Nigerian Stock Exchange (NSE) has said.

    Speaking at the weekend at the launch of the NSE’s new trading platform for mutual fund, NSE Chief Executive Officer, Mr Oscar Onyema, said there were 13.9 million investors’ accounts in Central Securities Clearing System (CSCS), the clearing and settlement house for the Nigerian capital market.

    However, there may be investors with multiple accounts. Capital market stakeholders are currently running a campaign to merge and eradicate multiple accounts.

    Onyema said the launch of the NSE distribution and trading platform for mutual funds would not only provide an opportunity for the 256 brokers in the market to distribute to existing 13.9 million investors’ accounts in CSCS but also attract new investors that may be interested in gaining exposure to the capital markets through mutual funds.

    He said the new platform will enhance visibility for listed funds and promote financial inclusion, while stimulating retail investor participation in the market.

    “This distribution platform is a new channel for accessing mutual funds which are listed on the NSE. This restates our commitment to provide market operators, issuers, fund managers and investors with a reliable, efficient and an adaptable platform to create a more transparent, liquid and accessible market in line with global best practices,” Onyema said.

    According to him, the platform will facilitate electronic transactions with seamless connection   among NSE, CSCS, fund managers and brokers as investors have the benefit of a single view of their mutual fund investment while being able to invest with multiple fund managers through a single broker.

    He noted that in recent years, there has been significant increase in the number of mutual funds in Nigeria, an indication of the growing interest in collective investment schemes.

    “However there is significant room for growth in mutual fund assets, as the ratio of these to the Nigerian Gross Domestic Product is estimated at less than 1.0 per cent. As at February 18, 2019, the numbers of registered mutual funds with the Securities and Exchange Commission (SEC) stood at 76 with Net Asset Value (NAV) in excess of N600 billion. Out of these registered funds, 47 are listed on the NSE memorandum listing platform. With the launch of this new distribution platform, we expect to receive more applications for listing of mutual funds,” Onyema said.

    NSE Head of Listing Business Division, Mr. Olumide Bolumole said the new platform would enhance visibility for the listed mutual funds and promote financial inclusion while stimulating retail investor participation in the stock market.

    “Through this platform investors can pool funds into chosen basket of securities which have proven to be a veritable means to optimise returns and reduce risks,” Bolumole said.

    Central Securities Clearing System (CSCS) Plc Mnaging Director, Mr. Haruna Jalo-Waziri, said the new platform marked another milestone for the Nigerian capital market as it will serve as a step towards improving the level of financial inclusion in Nigeria by giving investors varieties of investment products.

    According to him, as part of its commitment to providing far-reaching benefits to the capital market, CSCS has proactively invested in technology that would enable us provides seamless post-trade services to a wide range of financial instruments, including collective investment schemes.

    “Additionally, fund managers can now augment their product distribution strength using the brokerage communities’ network. We believe this will also contribute towards increasing secondary market participation whilst growing funds under management for Asset managers”, Jalo-Waziri said.

    Fund Managers Association of Nigeria (FMAN) President, Mr. Dayo Obisan, noted that one of the initiatives in the FMAN five-year road map was to develop and implement a nationwide distribution and trading platform for mutual funds.

    Association of Stockbroking Houses of Nigeria (ASHON), Chairman, Chief Patrick Ezeagu, said stockbroking firms were delighted to have been a part of the development and emergence of the new trading platform.

    According to him, the new platform was directed at reawakening the small savers in order to take advantage of investing through mutual fund and to have the synergistic benefit of a better return in the market.

    “The memorandum trading platform will facilitate the ease of doing business in trading and distribution of mutual funds, it will inspire small savers thereby promoting financial inclusion which is an important focus of our members. We congratulate everyone that contributed to the success of this initiative and encourage all operators to embrace this new aspect of deepening of our market which is a formidable incursion into an erstwhile grey sector,” Ezeagu said.

     

  • SEC relaxes primary market rules to stimulate new issues

    A Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has modified many rules on primary market issuance in a bid to enhance the efficiency of the issuance process and reduce regulatory bureaucracy.

    In a major review of approval requirements, the Commission reduced the number and procedure for filing consents for all issues as well as the approval process for documents relating to marketing and allotment. Part of the changes includes consent letters, adverts, posters, allotment advice and specimen certificates.

    Under the new rules, which took effect last week, only the Governor, the Commissioner for Finance, the Accountant-General and the Attorney-General of the State shall be required to be named in the offer document for a sub-national issue as against the previous practice of having all members of the state cabinet named in the offer document.

    Also, only the four of the Governor, the Commissioner for Finance, the Accountant-General and the Attorney-General of the State shall be required to sign or execute offer document. Consequently, consent letters shall only be required from the Governor, Commissioner for Finance, Accountant-General and the Attorney-General of the State.

    The Commission stated that it had evaluated the practice of having all members of a state cabinet consent to be named in the offer document and execute the prospectus and considered the practice unduly burdensome and not in line with the accountability structure of sub-national governments.

    Generally, consent letters of every person who consents to be named in the offer document or other documents in connection with a proposed offer, may now be filed either at the initial stage of a transaction or at the point of filing executed offer documents. This is a relaxation of the previous requirement of filing consent letters at the initial stage.

    However, the flexibility does not serve as an exemption to the complete filing directive of the Commission and it does not permit filing of consent letters in batches. As such, all consent letters are expected to be filed in one complete batch at the initial point of filing the transaction or at the point of filing the executed offer documents.

     

  • FMDQ lists Mixta Real Estate’s N17.2b debt issues

    FMDQ OTC Securities Exchange has admitted two bonds and commercial papers issued by Mixta Real Estate (Nigeria) Plc for trading on the over-the-counter market, paving the way for investors in the debt issues to trade on their holdings.

    Mixta listed its N2.96 billion Tranche A and N2.32 billion Tranche B Series 2 bonds and N9.84 billion Series 1 and N2.08 billion Series 2 commercial papers. The bonds were issued under the company’s N30 billion debt issuance programme while the commercial papers were issued under its N15 billion commercial paper issuance programme.

    The listing marked another significant contribution to inspire confidence in the Nigerian markets as housing and infrastructure development progressively takes form.

    Managing Director, Mixta Real Estate (Nigeria) Plc, Mr. Kola Ashiru-Balogun, said the issuances played an important role in implementing the company’s business strategy to develop affordable housing units as part of its modest contribution to bridging Nigeria’s significant housing deficit.

    “The confidence the Nigerian capital market has in us as demonstrated in these issuances is encouraging; we are more than ever committed in our quest to make strategic partnerships and provide innovative solutions whilst utilising effective long-term financing mechanisms,” Ashiru-Balogun said.

    Speaking on behalf of the sponsor to the bonds and commercial papers, Managing Director, FBNQuest Merchant Bank Limited, Mr. Kayode Akinkugbe, said as a full-service investment bank, the company supported Mixta in obtaining bridge finance and advised on the bond and commercial papers  issuances and security structure.

    According to him, FBNQuest Merchant Bank leveraged on its extensive distribution capability to successfully sell the bonds and commercial papers.

    “This transaction enables Mixta to finance affordable housing projects and extends the tenor of its debt portfolio. Listing and quoting on the bonds and commercial papers on FMDQ will provide investors with a transparent and efficient platform for price determination, liquidity and execution of trades,” Akinkugbe said.

    Associate Executive Director, Capital Markets, FMDQ OTC Securities Exchange, Ms. Tumi Sekoni noted that the use of the proceeds of the bonds and commercial papers would help address the nation’s housing and infrastructure gap in a sustainable manner.

    She added that such debt issues would deliver prosperity to Nigerians and further deepen the domestic debt capital market, thus invariably contributing to Nigeria’s development.

    She reiterated FMDQ’s commitment to continue to deliver strategic initiatives towards the development of a highly liquid, deep and well-developed debt capital market in Nigeria.

    Associate Executive Director, Corporate Development, FMDQ OTC Securities Exchange, Ms. Kaodi Ugoji, commended Mixta for achieving what she described as landmark issues.

    She commended parties to the issues for their concerted efforts towards ensuring the success of the issuances.

    She pointed out that through consistent collaboration with its stakeholders, FMDQ will not relent on in its efforts to further deepen and effectively position the Nigerian debt capital market for growth, in support of the realisation of a globally competitive and vibrant economy.

     

  • Newrest ASL seeks to delist from NSE

    Newrest ASL Nigeria Plc has filed application seeking to delist its entire shares from the Nigerian Stock Exchange (NSE).

    The NSE yesterday confirmed that it has received application from the board of directors of Newsrest ASL, kick-starting the formal regulatory approval process for a voluntary delisting of its shares from the Exchange.

    In the application filed by Newrest ASL’s stockbroker, Helix Securities Limited, the company is seeking to voluntary delist its entire 634 million ordinary shares of 50 kobo each from the Daily Official List of the Exchange.

    Head, Listings Regulation, Nigerian Stock Exchange (NSE), Godstime Iwenekhai, stated that the voluntary delisting was due to inability of Newrest ASL to meet up with the 20 per cent free float requirement of the Exchange.

    The company stated that in line with the provisions of extant rules, it has opened and deposited sufficient funds to settle minority shareholders in an Escrow Account with Zenith Bank Plc to be managed by Meristem Registrars Limited.

    Rule 1.10 of the Rules for Delisting of Equity Securities from the Daily Official List of the Exchange states that: the Issuer shall set aside funds sufficient to purchase the interest of all shareholders who expressed their dissent to the resolution to de-list the Issuer; and the funds shall be domiciled with a Registrar or a Custodian duly registered by and in good standing with the Securities and Exchange Commission.

  • Equities sustain rally with N77b gain

    Nigerian equities continued on the upswing yesterday as corporate results and relative stability in macroeconomic outlook quickened investors’ appetite for quoted equities. Benchmark indices at the stock market showed widespread bargain-hunting, leaving investors with net capital gains of N77 billion.

    The All Share Index (ASI)- the common value-based index that tracks share prices at the Nigerian Stock Exchange (NSE), appreciated by 0.64 per cent to close at 32,614.05 points as against its opening index of 32,406.17 points. Aggregate market value of all quoted equities also rose correspondingly from its opening value of N12.085 trillion to close at N12.162 trillion. This nudged the average year-to-date return to 3.77 per cent.

    Analysts at GTI Securities said the rally was driven by “renewed optimism triggered by dividend declaration by some highly capitalised stocks”. Zenith Bank and Nigerian Breweries, two of Nigeria’s largest quoted companies, had released their full-year audited results and dividend recommendations.

    All sectoral indices closed positive with the exception of the NSE Industrial Goods Index, which slipped by 0.02 per cent. The NSE Consumer Goods Index led the rally with a gain of 1.4 per cent. The NSE Insurance Index followed with a gain of 1.2 per cent. The NSE Oil & Gas Index appreciated by 1.0 pe r cent while the NSE Banking Index rose by 0.8 per cent.

    The momentum of activities also improved by 22.7 per cent with a turnover of 443.78 million shares valued at N5.46 billion in 4,697 deals. Banking stocks dominated the top activities chart. Sterling Bank was the most active stock with 105.75 million shares valued at N253.75 million. Guaranty Trust Bank followed with 37.43 million shares worth N1.42 billion while United Bank for Africa recorded a turnover of 33.03 million shares worth N266.17 million.

    “Following two consecutive sessions of positive performance, we do not rule out the possibility of profit taking in subsequent sessions this week,” Afrinvest Securities stated.

    There were 26 advancers against 16 decliners yesterday. Nigerian Breweries led the gainers with a gain of N7,50 to close at N82.50. 11 followed with a gain of N1.80 to close at N170. Dangote Flour Mills and UAC of Nigeria rose by 50 kobo each to close at N9.95 and N9 respectively. Zenith Bank added 45 kobo to close at N25.80. Oando rose by 35 kobo to close at N6.30 while Guaranty Trust Bank chalked up 30 kobo to close at N38 per share.

    On the negative side, Nestle Nigeria led the losers with a drop of N20 to close at N1,580. Unilever Nigeria lost 60 kobo to close at N43. Custodian Investment and GlaxoSmithKline Consumer declined by 45 kobo each to close at N6.10 and N11.55 while Flour Mills of Nigeria dropped by 25 kobo to close at N20.75 per share.

    “Whilst stable macroeconomic fundamentals and convincing valuation guides to likely market rally in the mid-to-long term, we remain conservative on risky investments as election jitters intensify,” Cordros Capital stated.

  • 49 African countries sign AfCFTA’s agreement

    At least 49 out of the 55 African Union (AU) member states have signed the Continental Free Trade Area (AfCFTA) agreement.

    AfCFTA is designed to create a single continental market for goods and services, with free movement of business persons and investments and acceleration of the establishment of the Customs Union.

    According to a statement by the group, it is also expected to expand intra-African trade through better harmonisation and coordination of trade liberalisation, facilitate instruments across the regional economic communities and across the continent, enhance industrial competitiveness and utilise opportunities for scale production, continental market access and better resource reallocation.

    It was presented for signature, along with the Kigali Declaration and the Protocol to the Treaty Establishing the African Economic Community relating to the free movement of persons in Kigali on March 17-21, last year. During this time, an action plan on Boosting Intra-Africa Trade (BIAT), with seven priority action clusters: trade policy, trade facilitation, productive capacity, trade-related infrastructure, trade finance, trade information and factor market integration, was also approved. Yet, only 12 countries have ratified it-Ghana, Kenya, Rwanda, Niger, Chad, Guinea, eSwatini, Uganda, Ivory Coast (Côte d’Ivoire) and most recently, South Africa, Mauritania and Republic of Congo – and an additional six countries have received parliamentary approval for ratification – namely Sierra Leone, Mali, Namibia, Senegal, Togo and Djibouti.

    All ratifications (approved and deposited) now stand at 18. We have given this background to show the progress of ratification and according to AfCFTA agreement, 22 of the signatory states are needed for it to come into force. Once into force, it will be the largest in the world in terms of participating countries since the formation of the World Trade Organisation (WTO). It is also estimated to boost intra-African trade by 52.3 per cent by eliminating import duties and doubling trade if non-tariff barriers are also reduced.

    If all AU member states ratify AfCFTA, they will certainly broaden their national economic horizons and strengthen their regional groupings. We may say that, a new venture is studied first before it is implemented to avoid untoward eventualities and perhaps that is why only 12 AU member states have so far ratified it. Let’s give those countries that have not ratified AfCFTA more time to study and ratify it only when they are ready to do so. We shouldn’t rush to sign and ratify AfCFTA, but let’s first engage in soul-searching and only ratify it after we are sure of its benefits for both the African continent and national economies.

  • Sterling Bank lists N33b bonds on NSE, FMDQ

    Sterling Bank Plc yesterday listed its N32.9 billion bond on the Nigerian Stock Exchange (NSE) and FMDQ OTC Securities Exchange, paving the way for investors in the bond to trade on their units.

    The N32.90 billion Series 2 bond, issued by Sterling Investment Management SPV Plc, a special purpose vehicle of the bank, is an unsecured bond with a tenor of seven years at a fixed coupon rate of 16.50 per cent. The bond is part of a N65 billion debt issuance programme launched by Sterling Bank to support its new business strategy and digital banking.

    Under the new business strategy, Sterling Bank will build expertise and investments in five sectors regarded as growth sectors of the Nigerian economy including health, education, agriculture, renewable energy and transportation.

    Speaking during the listing at the NSE and FMDQ, Managing Director, Sterling Bank Plc, Mr. Abubakar Suleiman, said the success of the bond reflected the increasing appetite of local institutional investors for long term debt instruments and increasing confidence in Sterling Bank as an issuer.

    According to him, the considerable oversubscription of the issue showed investors’ confidence in the bank and further strengthened and diversified the bank’s corporate funding strategy.

    He commended stockbrokers for supporting the bank and assured that the bank will continue to engage the market on its activities.

    He urged capital market operators to continue to support the bank as it continues to explore opportunities to widen its businesses and strengthen is balance sheet.

    Associate Executive Director, Capital Markets, FMDQ OTC Securities Exchange, Ms. Tumi Sekoni commended Sterling Bank for again joining the league of corporate entities whose debt profiles have been raised through the value-packed listings, quotations and noting service offered by FMDQ. Sterling Bank had listed its earlier bond on FMDQ.

    She noted that the listing would contribute to the growth of the Nigerian corporate bond market by injecting renewed confidence into the debt market.

    She assured stakeholders that FMDQ would continue to innovate and provide efficient services, as may be necessary, to support issuers and investors, towards achieving a globally competitive and operationally excellent debt market.

    Partner and Head of Investment Banking, Constant Capital Partners Limited, Mr. Niyi Omojola noted that his firm, the lead issuing house in the bond issue, crafted a unique and innovative investment structure which enabled the Sterling SPV bond share in the same investment grade rating as Sterling Bank Plc, thereby enlarging the range of potential investors in the bond.

    He said the innovative structure protects investors by providing bond-backed credit enhancement while investing in the Tier II capital of Sterling Bank Plc.

    According to him, as a result of the compelling proposition offered by Sterling Bank Plc and the structuring and distribution efforts of Constant Capital, the transaction was extensively oversubscribed.

    Omojola also said the innovation has allowed investors benefit from an enhanced rating, while providing Tier II capital to Sterling Bank Plc.

    Associate Executive Director, Corporate Development, FMDQ OTC Securities Exchange, Ms.  Kaodi  Ugoji,  said listing on FMDQ will avail the bond unprecedented market transparency, unrivalled information disclosure, efficient price formation and improved global visibility, among other benefits.

    She reiterated FMDQ’s commitment to continually align its initiatives towards serving and providing the much-needed support to the players in the DCM.

     

  • Chams counts gains of restructuring

    •Mulls new capital raising

    Chams has successfully restructured its operations and now on the path of sustained growth. The company has launched a process to further strengthen its balance sheet through injection of new capital.

    Group Managing Director, Chams Plc, Mr Femi Williams said the company’s businesses have been repositioned and now delivering improved results, assuring shareholders of better days.

    Addressing journalists on the activities of the company yesterday in Lagos, Williams said the company embarked upon restructuring to sustain its competitive edge and deliver value to all stakeholders.

    According to him, the restructuring exercise became necessary in view of the challenging operating environment in Nigeria and the need to grow the company’s balance sheet on sustainable basis.

    “It is noteworthy that the repositioning exercise through a network of our seasoned human capital has begun to pay off despite the operating environment in Nigeria. The company’s financial fortune has been turned around to put smiles on the faces of our stakeholders,” Williams said.

    He assured that the company’s top-line and bottom-line as well as other major performance indicators will justify the substance and essence of the restructuring exercise.

    He reiterated the commitment of the board and executive management to the growth of the company and delivery of worthy returns to the investors.

    He said the company has developed a robust private sector client base and now deploying its products to support corporate growth pointing out that Chams has deployed its e-voting platform to ensure cost-effective and seamless voting system for some reputable organisations in Nigeria.

    He explained that the company’s business model has been modified from identity management to intelligent business solutions, thereby carving a niche for it to be more innovative in providing solutions and platforms for private and public sector organisations.

    “We are currently undergoing development of two innovative solutions that will be rolled out into the market soon. Our pharm IT platform was successfully launched in December 2018 at the Pharmaceutical Society of Nigeria (PSN) Conference. It is a technology solution developed for the pharmaceuticals industry to enhance and manage drug distribution. Chams had developed a customized Rapid Application Development Framework for development of mission critical enterprise solutions for peculiar Nigerian and African environment. We had used this framework to deliver solutions for real estates, pharmaceuticals and other industries in Nigeria. Our subsidiaries have also achieved several commendable feats at the close of fourth quarter of 2018. Some of these include provision of innovative solution to telecommunication and financial institutions, especially financial issuance solutions,” Williams said.

    He added that Chams has recorded many success stories following the positive outcome of its restructuring exercise including award of the Bank Verification Number (BVN) project in partnership with Dermalog, which was delivered in all bank branches in the 36 states of the federation within timeline, deployment of e-voting platform called VOTA which is currently being used by organisations like Chartered Institute of Taxation of Nigeria (CITN) and Institute of Chartered Accountants of Nigeria (ICAN) and others.

    He noted that the company places higher premium on working for the private sector but also engages the government on partnership basis.

    He urged the government to encourage local information and communication technology (ICT) companies through patronage of their products and services.

    According to him, ICT sector is quite challenging and capital intensive as the sector is rapidly changing in terms of technology.

    Williams assured the company’s shareholders that the successful outcome of its restructuring would enhance its profitability and return on investment (ROI).

     

  • Election fears shave off N196b from equities

    The ripples of the weekend rescheduling of the presidential and national assembly elections reverberated at the Nigerian stock market on Monday as heightened political risk triggered a massive sale pressure at the equities market.

    Nigerian equities lost N196 billion yesterday with more than three out of every four transactions closing negative. Benchmark indices at the Nigerian Stock Exchange (NSE) indicated average decline of 1.61 per cent yesterday, narrowing the average year-to-date to 2.42 per cent.

    Few hours to the commencement of polls, the Independent National Electoral Commission (INEC) had at the weekend rescheduled the February 16, 2019 presidential elections to February 23, 2019 while the gubernatorial and house of assembly elections earlier scheduled for March 02, 2019 were rescheduled to March 09, 2019.

    Investment pundits agreed that the last-minute rescheduling of the elections heightened Nigeria’s political risk, a major factor that had earlier created a lull in the market. In anticipation of the February 16, 2019 elections, the equities market had sustained a rally that netted N805 billion in capital gains by the weekend.

    “We anticipate the bearish run to be sustained this week due to pre-election jitters caused by the uncertainties surrounding the elections,” Afrinvest Securities stated.

    Cordros Capital noted that the bearishness at the market was due to “the impact of the 11th-hour general election delay”, which “significantly weighed on investors’ appetite for naira risk assets”.

    “Amidst the still heated political environment which greeted the shocking election postponement, we guide investors to trade cautiously in the short term. However, stable macroeconomic fundamentals and attractive valuations remain supportive of recovery in the medium-to-long-term,” Cordros Capital stated.

    Chief Executive Officer, Sofunix Investment and Communications Limited, Mr. Sola Oni, said the shock caused by the announcement may further dampen the enthusiasm of foreign investors who had been apprehensive of the general elections.

    “It is not unlikely that trading on the stock market may be moderated by this development as it is capable of further eroding investors’ confidence in our market. Every political decision has direct or indirect impact on the financial markets,” Oni said.

    National President, Constance Shareholders’ Association of Nigeria, Mikail Shehu, said the postponement would have a negative impact on the capital market as investors seek clarity before taking further decisions.

    He noted that investors would not like to invest where there appears to be no stability.

    The All Share Index (ASI)- the main index that tracks share prices at the NSE, declined from its opening index of 32,715.20 points to close at 32,190.07 points. Aggregate market value of all quoted companies dropped from its opening value of N12.200 trillion to close at N12.004 trillion.

    With 37 decliners to 12 advancers, sectoral indices showed market-wide selloffs. The NSE Banking Index dropped by 3.21 per cent. The NSE Oil and Gas Index declined by 2.92 per cent. The NSE Consumer Goods Index dropped by 1.54 per cent while the NSE Industrial Goods Index and NSE Insurance Index dipped by 1.16 per cent each.

    Total Nigeria led the losers with a loss of N15 to close at N190. 11, formerly Mobil Oil Nigeria, followed with a drop of N14 to close at N170. Nigerian Breweries dropped by N8 to close at N75. Guaranty Trust Bank depreciated by N1.45 to close at N36.50. Cement Company of Northern Nigeria dropped by n1 to close at N20 while Dangote Sugar Refinery, Nascon Allied Industries and Zenith Bank lost 75 kobo each to close at N14.55, N18.25 and N24 respectively.

    On the positive side, Nestle Nigeria led the gainers with a gain of N35 to close at N1,600. Beta Glass followed with a gain of N6.70 to close at N79. Presco rose by N6.60 to close at N72.60. CAP added N2.20 to close at N34. Dangote Flour Mills appreciated by 45 kobo to close at N9.60. Vitafoam Nigeria rose by 22 kobo to close at N4 while Union Bank of Nigeria chalked up 10 kobo to close at N7 per share.

    Also, the momentum of activities slowed down considerably as turnover volume and value declined by 71.2 per cent and 48.2 per cent respectively. Total turnover stood at 232.75 million shares valued at N3.36 billion in 4,134 deals. Access Bank was the most active stock with 25.32 million shares valued at N160.16 million. Chams followed with 21.70 million shares worth N4.34 million while United Bank for Africa placed third with 20.45 million shares valued at N157.19 million.

     

  • Transcorp doubles net profit to N20.6b

    Transnational Corporation of Nigeria (Transcorp) Plc nearly doubled its net profit in 2018 as the conglomerate rode on the back of improved performance across its businesses to deliver its strongest results in recent years.

    Key extracts of the audited report and accounts for the year ended December 31, 2018 showed that Transcorp’s turnover rose by 30 per cent while profits before and after tax grew by 82 per cent and 94 per cent respectively.

    Group turnover posted a record growth to N104.2 billion in 2018 compared with N80.28 billion in 2017. Gross profit rose from N36.42 billion in 2017 to N48.25 billion in 2018. Profit before tax increased to N22.4 billion as against N12.3 billion while profit after tax jumped from N10.61 billion in 2017 to N20.63 billion in 2018.

    The board of directors of the conglomerate has recommended payment of N1.22 billion as cash dividend for the 2018 business year, representing a dividend per share of 3.0 kobo.

    Chief Executive Officer, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Valentine Ozigbo, said the performance was a reflection of the group’s sound business strategy.

    He noted that the overall performance was boosted by increased revenue from the power and hospitality segments of the group while the group was also able to cut down on its loss from foreign exchange arising from financing activities by 30 per cent.

    According to him, Transcorp Power Ltd has continued to explore opportunities created by the eligible customer framework initiated by the Federal Government and it is at an advanced stage of negotiations with a number of eligible customers, which will translate into transactions in the months ahead.

    He added that the group’s hospitality subsidiary, Transcorp Hotels Plc, also maintained its history of profitability in 2018, displaying the impact of its recent $100 million upgrade at the Transcorp Hilton Abuja and the immense value placed on the hotel’s best-in-class hospitality services.

    “We will continuously strive to deliver significant value to our stakeholders while achieving our long-term goals,” Ozigbo, who took over in January 2019 stated.

    Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Tony Elumelu reassured that the group remained committed to its purpose of improving lives and transforming Nigeria by powering industries and businesses while providing local and international guests with unrivalled hospitality services.

    He said the group would continue to create sustainable value for all its stakeholders.

    Transcorp Group comprises strategic investments in the power, hospitality, agribusiness and oil and gas sectors. Its notable businesses include Transcorp Hilton Abuja, Transcorp Hotels Calabar, Transcorp Power and Transcorp Energy. It is one of the largest quoted companies, in terms of shareholders’ number, with a shareholder base of about 300,000 shareholders.