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The board of the Transnational Corporation of Nigeria (Transcorp), on Friday, presented its audited financials for the year ended December 31, 2021, to the Nigerian Exchange Limited, wherein it reported a robust 47.76% growth in revenue and even more significant 528.45% improvement in net profit. Consequently, the directors will recommend a dividend per share of two kobos for approval of shareholders at the next annual general meeting. The payout, which though representing a 100% increase over the previous year’s payment, is a far cry considering the earnings per share of 34 kobo, from a loss of two kobo in the corresponding period of 2020.

Revenue for the period soared by N35.948bn from N75.27bn in the prior full-year to N111.219bn; mainly being the N89.477bn earned from the group’s power business, up from N65.118bn in the preceding year; followed from afar by the N21.742bn from its hospitality segment, from N10.152bn.

A further breakdown of the revenue showed that energy sent out yielded the most revenue of N57.031bn, from N40.509bn; followed by the N32.418bn in capacity charge; and N14.085bn earned from rooms, up from N6.502bn; and food and beverages that grossed N6.47bn from N2.593bn. Cost of sales increased N14.138bn representing a slower 33.42% to N56.439bn, up from N42.301bn; resulting in a gross profit of N54.779bn, a 66.15% increase.

Other gains rose marginally from N2.594bn to N2.644bn; impairment loss on financial assets dropped significantly from N3.956bn to N182.795m; administrative expenses jump higher to N18.704bn from N11.383bn, the hospitality accounting for N11.428bn, followed by N.293bn from power; while the nil termination/retirement benefits for the period as against N2.238bn; resulted in an operating profit of N38.535bn, compared to prior year’s N17.986bn.

Finance income fell to N283.926m from N415.418m, and finance cost from N16.793bn to N15.327bn, of which N4.072bn and N7.293bn were incurred by the hospitality and power arms, compared to N5.306bn and N8.495bn respectively; bargain purchase on consolidation of Afam Power Limited amounted to a positive N4.506bn. These left profits before tax at N27.998bn, the lion’s share of which was, once again, from the power business; compared to N1.608bn in 2020. A 100% increase in income tax left it at N4.167bn from N2.183bn; while profit after tax came to N23.831bn from N3.792bn, from the directors will offer a total of N812.959m for payout as total dividend, up from N406.479m paid on the outstanding ordinary shares of 40,647,990,293 shares of 50 kobo each.

EQUITY

A total turnover of 756.769 million shares worth N13.653 billion in 18,248 deals was traded
this week by investors on the floor of the Exchange, in contrast to a total of 1.241 billion
shares valued at N15.668 billion that exchanged hands last week in 18,560 deals.
The Financial Services Industry (measured by volume) led the activity chart with 454.718
million shares valued at N4.813 billion traded in 8,214 deals; thus contributing 60.09% and
35.26% to the total equity turnover volume and value respectively. The ICT Industry followed
with 61.735 million shares worth N1.647 billion in 1,600 deals. The third place was the
Conglomerates Industry, with a turnover of 56.842 million shares worth N119.141 million in
622 deals.
Trading in the top three equities namely FBN Holdings Plc, Guaranty Trust Holding
Company Plc and Fidelity Bank Plc, (measured by volume) accounted for 165.522 million
shares worth N2.320 billion in 2,530 deals, contributing 21.87% and 16.99% to the total
equity turnover volume and value respectively.

ETP
A total of 3,892 units valued at N0.785 million were traded this week in 38 deals compared
with a total of 2,063 units valued at N1.505 million transacted last week in 59 deals.

BONDS
A total of 29,711 units valued at N29.901 million were traded this week in 27 deals compared
with a total of 21,845 units valued at N21.565 million transacted last week in 14 deals.

INDEX

The NGX All-Share Index and Market Capitalization appreciated by 0.12% to close the week
at 52,657.88 and N28.681 trillion respectively.
Similarly, all other indices finished higher with the exception of NGX 30, NGX CG, NGX
Premium, NGX MERI Growth, NGX Consumer Goods and NGX Sovereign Bond, indices
which depreciated by 0.07%, 0.05%, 0.45%, 1.21%, 1.09% and 2.30% respectively, while
the NGX ASeM index closed flat