TRANSNATIONAL CORPORATION: A STABLE GROWTH

The company recorded gross revenues of 2.38 billion as against N2.79 billion in 2009; a decline of 15% attributed to provisions for expansion of the Transcorp Hilton Hotel Abuja and accrued tax liabilities for prior years. The company managed to keep its operating expenses at about the same level (1.44 billion) over the two years.

The group total revenue increased by 7% from N12.99billion in the proceeding financial year to N13.93 billion during the review period. While, the group operating expenses increased by 20% from N4.53 billion to N5.47 billion for the financial year due to refocusing of our businesses strategy within the group.

TONY ELUMELU - The New Chairman of Transcorp

During the year under review, the company recorded a significant increase of 3298% or N3.36 billion in its profit before tax over the previous year; increasing from N1 01 million to N3.46 billion. Similarly, group profit before tax increased from N3.23 billion in 2009 financial year to N6.91 billion in the reporting period, representing a growth of 114% or N3.68 billion. This growth was a result of deliberate refocusing of the company's business as well as a write back of N2.85billion provision made in prior year for investment in OPL281 which was considered lost, but now reallocated to the company in February 2011. This marked an important turning point in the history of the company. Hence, Year 2010 operating results and performance is remarkable and commendable, given the enormity of the challenges in the operating environment.

Manz Denga  - The New Chief Executive Officer of Transcorp

Balance Sheet

The company's total assets grew by 31% from N16.40 billion to N21.52 billion, it’s networth decrease slightly from N15. 75 billion to N15.24billion during the period under review. The decrease in the net worth is the result of the recognition of N3.83 billion excess owner returns received from Hilton Hotel between 2007-2009 which has been provided for in the company books. The group’s total assets increased by 23% from N34.75 billion to N42. 96 billion, its net worth increased by N3.69 billion, representing a growth of 16% over the previous year. Total liabilities increased by 38% from N11.81 billion to N16.33 billion in the financial year.

The company's shareholders funds stood at N15.24 billion in comparison with N15. 75 billion in 2009, the reserves position remains at the same level for both years inspite of N3.32 billion profit made during the year 2010. The reason was that the N3.38 billion excess owner returns received from Hilton Hotel between 2007-2009 was written off against the profit made during the year.

Mrs Helen Iwuchukwu (Company Secretary) and Dr. Ndi-Okereke Onyiuke

(Former Chairman of Transcorp)  

Transcorp Hilton Hotel Abuja won the award as the best Hilton Hotel in Africa and Asia in the year 2010. We hope to leverage on this success in the proposed Transcorp Ikoyi Hilton in the near future.

Directors at last AGM

In the agricultural sector, Teragro Commodities Limited, Transcorp's wholly owned agro-allie business subsidiary, has signed a long term lease agreement with the Benue state government for Benfruit, a new fruit concentrate processing plant. Over several months Transcorp held extensive negotiations with Benue state officials and central stakeholders to fine-tune the terms of an agreement that would be wealth generative for our shareholders and its citizens. The state, which already has a good reputation for private-public partnerships in the agro-allied segment, has offered Transcorp terms that are flexible and attractive. The lease will be for an all-cash consideration paid in phases over the lease period.

In selecting the existing plant owned by Benue state rather than building a new plant Transcorp had number of considerations in mind. Foremost of these was the need for speed to market. The Benfruit plant is new and will be commissioned before the end of 2011. Building a new plant would take no less than eighteen months from the site design, approvals phase, and equipment order placement to installation. The next factor that influenced our decision was that the opportunity was there. The Benue state government had expressed its intention to lease the plant. The third factor was that been  engaging with the Benue state government as partner, Teragro and Transcorp have a higher confidence level of success.