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

The Market opened for four trading days this week as the Federal Government of Nigeria
declared Friday 21st April, 2023 and Monday 24th April, 2023 as Public Holidays to mark the
Eid el-Fitr celebration.
A total turnover of 14.029 billion shares worth N59.007 billion in 24,048 deals was traded
this week by investors on the floor of the Exchange, in contrast to a total of 3.920 billion
shares valued at N15.620 billion that exchanged hands last week in 16,856 deals.
The Conglomerates Industry (measured by volume) led the activity chart with 11.399 billion
shares valued at N30.990 billion traded in 2,310 deals; thus contributing 81.25% and
52.52% to the total equity turnover volume and value respectively. The Financial Services
Industry followed with 2.185 billion shares worth N22.225 billion in 11,946 deals. The third
place was the Oil and Gas Industry, with a turnover of 117.097 million shares worth
N648.971 million in 1,500 deals.
Trading in the top three equities namely Transnational Corporation Plc, Access Holdings Plc
and Fidelity Bank Plc, (measured by volume) accounted for 13.116 billion shares worth
N47.928 billion in 6,614 deals, contributing 93.49% and 81.22% to the total equity turnover
volume and value respectively.

ETP
A total of 2,385 units valued at N643,140.13 were traded this week in 39 deals compared
with a total of 590 units valued at N269,819.25 transacted last week in 32 deals.

BONDS
A total of 23,782 units valued at N23.592 million were traded this week in 15 deals compared
with a total of 29,696 units valued at N29.004 million transacted last week in 28 deals.

INDEX

The NGX All-Share Index and Market Capitalization appreciated by 2.04% to close the week
at 52,403.51 and N28.534 trillion respectively.
Similarly, all other indices finished higher with the exception of NGX MERI Growth and NGX
Oil and Gas which depreciated by 1.58% and 0.14% respectively while the NGX ASeM,
NGX Growth and NGX Sovereign Bond indices closed flat.