Transcorp Plc released its 2012 FY earnings posting a Profit After Tax of N2.5billion up from N952million posted in 2011. Its revenue (mainly dividend income) dropped 18% to N2.3billion and income from other sources which may include asset disposal rose 627% to N2billion and accounted for for 71% of Pre-tax profits. Transcorp also saw increased saving in operating expenses which dropped for the second year running to 30%.
However, Net Interest cost is on the rise as it rose 62.6% year on year as the company piled up more debt. Debt increased to N13billion from those over N2billion in 2011 resulting in a debt equity of 75%. However, the company plans to raise N22billion in fresh equity which may be used to reduce the debt.
The Transcrop Group result was however not too pleasant as PAT dropped 57% to N2.5billion as revenues remained flat at N13.2billion. The reason for this drop was the apparent increase in admin expenses, finance cost and taxes all slicing off a combined N9billion from revenues.
Transcorp shares dropped 8.53% to N1.18 as investors react to the non-declaration of dividends and rights issue of N1 per share.
A full review of this result will be done once the company releases more details
Transcorp Plc reased its 2012 FY results on the website of the NSE