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Corporate Press Releases

Transcorp delivers strong performance despite challenging year

Transcorp’s Performance was underpinned by the execution of the Group’s well-defined strategies to deliver growth and achieve its long term goals.

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Transcorp Group announces significant new executive and non-executive board appointments
  • Achieves 2% and 225% increase in PAT for Group and the Company respectively
  • Grows Total Comprehensive Income by 31% and 563% for the Group and the Company respectively

Nigeria’s leading diversified conglomerate, Transnational Corporation of Nigeria Plc (“Transcorp”), has released its audited financial statements for the year ended December 31, 2020.

Transcorp achieved ₦75.2billion in turnover and Profit After Tax of ₦3.79billion in 2020, representing a 2.35% increase against ₦3.705billion in 2019. The Group’s Comprehensive income grew by 31%, from ₦3.44 in 2019, to ₦4.516billion in 2020, its Total assets of the Group grew by 8% from ₦313.1billion to ₦338.1billion, while shareholder’s funds increased by 5%, from ₦108.7billion in 2019 to ₦114.4billion in 2020.

Transcorp’s performance was underpinned by execution of the Group’s well-defined strategies to deliver growth and achieve its long term goals.

“We sustained and drove our growth agenda across all our business sectors in 2020, notwithstanding the challenging operating environment, emanating from the COVID-19 pandemic,” said Owen Omogiafo, President/Group CEO of Transcorp.

“We significantly advanced our strategic position as a leading player in the power sector, with the successful acquisition of 100% ownership stake in Afam Power Plc and Afam III Fast Power Limited, together with a combined installed capacity of about 1,000MW, bringing our total power generation capacity to approximately 2,000 MW. We have also commenced distributing internationally in the West African regional electricity market, as a member of the West African Power Pool (WAPP). We continue to seek opportunities to deepen our position across the power value chain, as we deliver on our promise to power Nigeria”, Mrs Omogiafo said.

Speaking further, Mrs Omogiafo said, “Despite the impact of the pandemic on our hospitality business, we responded quickly by embarking on several initiatives to adapt to the new normal and meet the needs of guests and staff in the pandemic era, whilst intensifying cost-saving mechanisms to minimise the losses brought about by the pandemic.”

Commenting on the results, the Chairman of Transcorp, Tony O. Elumelu CON, said, “Businesses across the globe had to adapt, be innovative and learn to manoeuvre the volatile macroeconomic environment the Covid-19 pandemic created. Though tough for all, we demonstrated our resilience and continued relentlessly in our mission to ensure we improve lives and transform Nigeria. By growing our investments in power and hospitality, we were able to continue to develop our businesses and generate the long-term value our shareholders expect.”

Speaking on Transcorp’s outlook for 2021, Mrs Omogiafo emphasised the Group’s focus on increasing momentum across all business lines. Transcorp Hotels Plc recently launched its asset-light business, ‘Aura by Transcorp Hotels’, which leverages technology to provide travellers with accommodation options across Africa. Aura is a digital play that would revolutionalise the African hospitality industry and position Transcorp Hotels, to continue to dominate and increase its footprint across Africa.

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Mrs Omogiafo also highlighted the Group’s ground-breaking advances in its integrated gas-to-power strategy, leveraging its OPL 281 asset and its partnership with Heirs Holdings, in the acquisition of OML 17 to meet the gas requirements for its power business.

“We have laid a strong foundation for sustainable growth. We remain focused on to creating long-term value for all stakeholders and to position Transcorp as a flagship Pan African conglomerate,” the President/GCEO said.

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About Transcorp

Transnational Corporation of Nigeria Plc (Transcorp) is a publicly quoted conglomerate, with a diversified shareholder base of over 300,000.

Our portfolio comprises strategic investments in the power, hospitality, agribusiness and oil and gas sectors. Our notable businesses include Transcorp Hilton Abuja, Transcorp Hotels Calabar, Transcorp Power, TransAfam Limited and Transcorp Energy.

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Corporate Press Releases

Konga and the $10b target by 2026

Konga has strategically invested in building a world-class infrastructure from the ground up which has equally elevated its many offerings.

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Konga opens new stores in Lagos, Abuja, Uyo, Rivers, Warri, others 

The Nigerian e-Commerce sector is a much-touted lucre that has attracted a number of players.

The growing interest is buoyed by the rise in a youthful population, growing smartphone and internet penetration, the aspirational mind-set of the average Nigerian and expanding consumer power. At present, e-Commerce spending in Nigeria is on the rise. Research estimates indicate that current spend on e-Commerce is at $12 billion, with the figure expected to rise higher and even projected to reach $75 billion in revenues per annum by 2025.

Despite the allure, the reality of cracking e-Commerce in Nigeria and in Africa, by extension, remains a task far removed from the exertions of the faint-hearted.

Indeed, making a success of e-Commerce, as the experience of many players who stumbled in Africa’s biggest market has shown, demands not only deep pockets but also a huge dose of street-smartness, a keen understanding of the Nigerian market, a determination to stick to ethics and play by the rules, as well as sheer bloody-mindedness in overcoming many of the frustrating infrastructural and institutional encumbrances that have hobbled many in this industry.

Till date, the strides of Konga remain a template for many to follow.

In tracking the current laudable strides of this e-Commerce behemoth, it is imperative to recognize and appreciate the efforts of many players who have toiled but found the Nigerian e-Commerce market too high a mountain to climb. The likes of Jiji, OLX, DealDey and Efritin, among many others, have a tale or two to tell about the hard nut that e-Commerce in Nigeria represents.

Though it also has a thing or two to share about the pitfalls of playing in a difficult terrain such as Nigeria, Konga has transformed itself, under the management of its new owners – the Zinox Group – into a much sought-after entity, the beautiful bride of potential e-Commerce investors and global stock markets. Recently, Konga was reported to have fielded interest from the New York Stock Exchange as well as the London Stock Exchange over a purported listing, as interest swirled in the company from near and far. Also, feelers in the industry indicate that many are looking to buy into the business and if Konga were to list its shares today, it would probably not only get oversubscribed but also result in a unicorn valuation.

The submission of a recent panel of experts on the Konga brand is worth recalling here, with Prof. Bouba Yankubah, one of the panellists, painting a picture of a thriving e-Commerce brand during the session which held in Accra, Ghana.

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Prof. Yankubah was quoted as saying: ‘‘It is strange that not much has been said of how much impact Konga has had in the Nigerian, nay African e-Commerce ecosystem. But lest we forget, that is the brand that pioneered the marketplace structure in Africa which was widely replicated by other brands, not only in Africa but also by the likes of Amazon as well.

‘‘The…case of Konga as the jewel in the crown of African e-Commerce is further justified by its thriving business entities which include a licensed mobile bank, online travel agency, its omni-channel strategy, the ease with which it has resolved the thorny challenge of logistics as well as its hard-earned status as a trustworthy brand.

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‘‘It is interesting that, despite the huge investment by its new owners, which from reports in the Nigerian media, are highly credible and experienced entrepreneurs, the brand is yet to follow through on rumoured intentions to list on the international stock market. If and when this happens, Konga’s valuation may exceed well over $2.5bn and we may see the emergence of a true African unicorn.

‘‘But I wish to urge the owners of Konga not to be tempted by greed and to stay true to their strategies and long-term vision for the business,’’ he had stated.

In my line of work as an analyst covering the African e-Commerce market, I have seen many promising e-Commerce start-ups flatter to deceive. Konga has stayed the course and currently enjoys the confidence of a growing number of Nigerians as the biggest player in the market.

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But what is Konga doing right?

First, the management of Konga has demonstrated an extensive understanding of the market – an advantage that continues to help it navigate policy somersaults and other risks associated with the peculiar Nigerian market. This is mainly due to the experience of the current owners of Konga who are widely reported to be credible Nigerians who have been in business for over 30 successful years. Today, Konga is better equipped, more than any other e-Commerce player to take on and successfully deliver large projects or find a solution to the most difficult infrastructural challenge in Nigeria. Even if Amazon or Alibaba were to expand their operations to Nigeria, they would struggle to beat Konga and may have to settle for a partnership with them.

Two, Konga has strategically invested in building a world-class infrastructure from the ground up which has equally elevated its many offerings. In the area of technology, Konga boasts perhaps one of the most advanced technology suites in Nigeria, ranging from the multiplicity of apps driving its day-to-day operations and a reported robotics-enabled multiple warehouse deployments. Closely aligned to this is its investment in massive regional warehouses – a project that has conveniently positioned it to retain huge inventory, significantly boosted its carrying capacity, as well as its orders fulfilment capabilities.

In addition, one of the major advantages that Konga holds in its war chest is the fact that it has seemingly resolved the challenge of logistics – one of the biggest obstacles and pain-points of e-Commerce, not only in Nigeria, but in Africa, as well. Konga, I understand, has its own internally owned logistics company which, from reports in the media, has the capacity to handle deliveries to the last mile for Konga as well as for external parties. Kxpress, as the company is known, is said to have in its arsenal a growing fleet of trucks, buses, motorcycles and other vehicles which it puts to use in serving the market and navigating the traffic-challenged nooks and crannies of the major cities and hinterlands in Nigeria.

Furthermore, there is a sense that, with Konga, ethics can never be sacrificed on the altar of selfish gains. The travails of another well-known player in the industry further justifies the Konga hallmark of ethical rectitude. There is no place for cooking the books or falsifying figures to paint a deceptive picture to customers or potential investors. This is a quality that has put the business on a sound footing, especially in its dealings with all of its stakeholders.

Worth mentioning as well is the fact that Konga has remained an example of reliability and responsive customer experience. From the personal experiences of myself, professional colleagues, other industry acquaintances as well as the majority of opinions sampled, Konga stands heads and shoulders above its peers in terms of its approach to meeting the expectations of customers. There is zero tolerance for fake or substandard items on its platforms, with the company holding high its promise of making available only genuine products which it sources directly from manufacturers. Merchants who trade on its platform, by extension, also key into this tradition. Defaulters are blacklisted while issues are handled swiftly by an internal unit which has a deadline for resolutions.

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Aligned with KongaPay, a Central Bank of Nigeria-licensed mobile money platform, a growing chain of brick-and-mortar stores dotting Nigeria’s landscape and accounting for the many who still wish to experience e-Commerce the traditional way; as well as a number of thriving entities under the Konga stable, there is no looking back for this powerful retail giant.

It is only a matter of time before the management of Konga caves into the huge pressure of hitting the global stock market.

The world awaits with bated breath…

 

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Dr. Aje Boluwatife is a visiting research scholar from the United States

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Corporate Press Releases

NOVA Merchant Bank’s growth trajectory continues as it declares N3.52bn profit

The Bank declared a profit after tax of N3.49bn in 2020 compared to N1.65bn in 2019 which represents a 112% increase.

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NOVA Merchant Bank Limited has released its audited results for the financial year ended December 31st 2020, recording impressive growth across its major financial lines.

The Bank declared a profit after tax of N3.49bn in 2020 compared to N1.65bn in 2019 which represents a 112% increase. All the key financial parameters recorded major improvement over the prior year performance; Gross Earnings showed a quantum leap of 130% growth over 2019 and Profit Before Tax at N3.52bn recorded a 135% growth over the 2019 figure of N1.5bn. On a similar note, the Bank recorded a decline in the Cost to Income Ratio from 55% in 2019 to 44% in 2020.

Customer deposits stood at N89.6bn in 2020 compared to N40.5bn in 2019 while loans to customers grew by 71% to N50bn in 2020 compared to N29.3bn in 2019.

The Managing Director and Chief Executive Officer, Mr Nath Ude, said, “Our full year 2020 performance is especially gratifying as we achieved such growth amidst the unprecedented nature of the COVID-19 pandemic and resulting macro-economic headwinds.”

“In 2021, we will continue to build on our strong foundation to significantly scale the business by focussing on exceeding the expectations of our customers through innovative financial solutions while expecting our non-bank subsidiaries to start contributing effectively to the group in line with our strategic intent,” Ude further stated.

The Chairman, Mr Phillips Oduoza stated, “I am particularly delighted to see how the Bank has maintained its growth trajectory and improve its efficiency during such a challenging period.

Oduoza added, “The Bank is well-positioned to benefit from the expected upsurge in economic activity and profit from the emerging opportunities this presents as the global economy emerges from the impact of the COVID-19 crisis.”

NOVA Merchant Bank offers an integrated suite of financial solutions covering Wholesale Banking, Investment Banking, Asset Management, Wealth Management, Trade Services, Transaction Banking, Cash Management and Digital Banking.

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