Transcorp Hotels Rises to N428bn over Demand for Shares
Transcorp Hotels Plc rose to N428 billion on Tuesday in the equities market due to increased demand for its shares. Transcorp Hotels Plc stocks have become not just popular but expensive as the hospitality company continue to gather earnings momentum.
Inside dealing in the company stock has been minimal and there has been no director dealing since October 2022. Ticker: TRANSCOHOT popped up with all energy on Tuesday due to increased positioning by equities investors in the Nigerian Exchange.
The share price rose to N41.8 from N39. Market data from the local bourse showed that the hotelier market valuation increased by 7.18% to more than N428 billion due to Alpha seekers’ rising demand for the stock. Transcorp Hotels Delivers Impressive Weekly Gain
MarketForces Africa reported that the hotels group in July announced in its unaudited financial statement a profit of N2.461 billion, up by about 46% year on year from N1.691 billion in the comparable period in 2022.
The significant profit growth came despite an increase in income tax in the period. The bottom line was aided by moderated growth in its costs of sales in the period.
Transcorp Hotels revenue surged to N18.983 billion in the first six months in 2023, a rise of 26.67% when compared with N14.986 billion the company delivered in the comparable period in 2022.
Its finance cost moderated to N1.987 billion in 12 months from N2.053 billion in the equivalent period in 2022. Its unaudited financial scorecard showed that earnings per share surged to 24 kobo, a stronger delivery when compared with 17 kobo reported in the first half of 2022.
At the end of the first half of the year, Transcorp Hotels’ balance sheet size expanded to about N123 billion, driven by a higher cash balance. The total shareholders fund in the hospitality company was N65.251 billion at the end of the first half of the year.
The group has 100% interest in Transcorp Hotels Calabar Limited and Transcorp Hotels Port Harcourt Limited. It owns 58% in Transcorp Hotels Ikoyi Limited and 60% in Aura by Transcorp Hotels Limited.
Transnational Corporation Plc. and Heirs Holdings Ltd own 20% each of the ordinary shares of Aura by Transcorp Hotels Ltd Ministry of Finance Incorporated owns 11.04% of the ordinary shares of Transcorp Hotels Plc
