Transcorp Accommodations Plc has reported a revenue earlier than tax (PBT) of N22.613 billion for the 12 months ended December 31, 2024, marking a powerful 138.48% year-on-year (YoY) progress.
The corporate has declared a remaining dividend of N0.64 per share, bringing the overall dividend for the 12 months to N0.74, together with the N0.10 interim dividend beforehand paid.
The ultimate dividend is ready to be paid on April 16, 2025.
In accordance with the audited monetary statements reviewed by Nairametrics, Transcorp Accommodations’ income surged by 69.18% YoY to N70.134 billion, up from N41.456 billion within the earlier 12 months.
Key highlights (2024 vs 2023 FY)
- Gross earnings: N70.134 billion +69.18% YoY
- Value of gross sales: N20.415 billion +74.93% YoY
- Gross revenue: N49.720 billion +66.93% YoY
- Working bills: N29.034 billion +68.24% YoY
- Working revenue: N26.029 billion +98.03% YoY
- Finance price: N4.011 billion +2.74% YoY
- Revenue after tax: N14.896 billion +138.18% YoY
- Earnings per share: N1.46 +143.33% YoY
- Money and money equivalents: N8.596 billion -4.27% YoY
- Complete property: N140.696 billion +11.58% YoY
- Complete borrowing: N16.085 billion -22.12% YoY
- Shareholders’ funds: N80.519 billion +20.54% YoY
Firm feedback:
Emmanuel Nnorom, Chairman of Transcorp Accommodations, in his feedback, highlighted the Firm’s dedication in direction of maximizing shareholder worth.
“We stay deeply dedicated to enhancing shareholder worth and delivering sturdy returns to our buyers, guaranteeing that Transcorp Accommodations continues to set the usual for hospitality excellence. The hospitality sector continues to be a significant contributor to Nigeria’s economic system, and we’re pleased with Transcorp Accommodations’ function in shaping the trade’s future.”
Constructing on this, Managing Director/CEO Uzo Oshogwe emphasised the corporate’s give attention to innovation, distinctive service, and sustained progress regardless of financial challenges.
“Because of the dedication and fervour of our groups, 2024 was a 12 months of sturdy progress and important milestones. Regardless of inflation and different macroeconomic challenges, we stay targeted on delivering excellent hospitality experiences, increasing our choices, and implementing a method that unlocks the complete potential of our enterprise for all stakeholders.”
Key highlights of the end result
Revenue surge
- The spectacular progress in pre-tax revenue was pushed by a robust improve in income, primarily from room gross sales, and a major rise in different working revenue, fueled by substantial international change positive factors.
- Room gross sales income grew by 70%, contributing 65% of whole income, whereas international change achieve surged by 392% to N4.585 billion in 2024, accounting for 85% of different working revenue.
Expense Evaluation:
- Though the price of gross sales grew sooner than income, the gross revenue margin stays sturdy at 70.89%.
- Room gross sales, with an 84.5% margin, stay probably the most worthwhile phase, whereas meals & drinks, at 42.9%, function with tighter margins.
- Operational bills elevated, with power prices contributing to it. Power bills surged from N2.425 billion in 2023 to N4.763 billion, reflecting a notable rise.
Steadiness sheet and monetary place
- Complete property grew by 11.58% to N140.696 billion, reflecting continued enterprise growth.
- Complete borrowings declined by 22.12%, decreasing monetary leverage. Curiosity bills on borrowings fell 10.21% YoY to N2.798 billion, enhancing the curiosity protection ratio to 9.30x from 4.22x in 2023, indicating that working revenue comfortably covers curiosity bills.
- Shareholders’ funds rose by 20.54% YoY, pushed by sturdy earnings progress and retained earnings, additional strengthening the corporate’s monetary place.
- Gearing ratio: The Firm has through the years constructed and maintained a wholesome debt capability and creditworthiness. The gearing ratio improved from 17.48% in FY 2023 to 9.30% in FY 2024, because of the constant principal reimbursement of third-party loans.
- Return on property: Return on property elevated from 4.83% in FY 2023 to 10.59% in FY 2024.
- Return on fairness: Return on fairness grew from 9.12% in FY 2023 to 18.50% in FY 2024, demonstrating environment friendly revenue era from fairness.
Transcorp Accommodations’ share value has remained flat at N126.10 since February 12, 2025, marking an 8.71% year-to-date (YtD) return as of February 26, 2025.
In 2024 it delivered a powerful 65% YtD achieve in 2023 and over 1,000% YtD return in 2023, highlighting sustained investor confidence.
Total, Transcorp Accommodations has delivered one other stellar efficiency, mixing aggressive income progress with disciplined price administration.
- A 138% surge in pre-tax income, regardless of rising prices, highlights the resilience of its high-margin room gross sales and the strategic benefit of a diversified income base.
- The decline in borrowings and improved curiosity protection sign monetary prudence, whereas shareholder rewards through dividends and a robust inventory efficiency reinforce confidence.
- But, the hovering price of gross sales calls for scrutiny, notably within the meals and beverage phase, the place margins stay tight.
- Sustaining this progress trajectory would require continued cautious pricing methods, price management, and model power.
- Regardless of the slowdown, the flat value motion indicators stability moderately than a lack of confidence. The dividend declaration and robust earnings ought to proceed to help the inventory, however additional upside might rely on recent catalysts, reminiscent of growth plans or improved financial circumstances.
- For now, although, the numbers communicate for themselves: Transcorp Accommodations isn’t just rising, it’s thriving.
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