Transcorp Posts 72% Growth In PAT At Mid-year

Transnational Corporation of Nigeria Plc (Transcorp) has announced an increase in profit after tax by 77 per cent during the half year ended June 30, 2012.

The company in its unaudited accounts and consolidated financial statements made available to LEADERSHIP on Friday, showed that profit after tax rose to N940 million, representing an increase of 72 per cent over prior year figure of N547 million. Total revenue for the six-month period amounted to N1.8 billion, up by N507 million or 41 per cent from N1.2 billion recorded for the same period of 2011.

The company also reduced administrative expenses by N488 million during the period under review.

Speaking on the result, Transcorp’s President and Chief Executive Officer, Mr. Obinna Ufudo said the company was pleased with its half year results which surpassed the performance of Year 2011 by N162 million.

“We are certain that Transcorp is on the right path and will realise the performance targets set at the beginning of the year. Our half-year results confirm that Transcorp is on sound footing.

We are confident that the steps taken so far in each of our business areas will further accelerate our growth. We have an enviable pipeline of deals, opportunities and projects, and are well positioned to take advantage of them and ensure that Transcorp delivers even stronger results for the remaining half of this year,” Ofudo said.

Transcorp had recorded 88 per cent rise in its operating profit for the year ended December 31, 2011.

The company in its audited accounts and consolidated financial statements made available to the newsmen, showed that operating profit rose to N1.4billion even as revenue and gross profit increased by N451 million or 19 per cent over 2010

The company also had its operating expense reduced by N258million in the period under consideration,

According to a statement, the company reports showed a healthy improvement in its operating and financial performance following several strategic initiatives begun over the previous year by the new management. “In addition, the new Transcorp board and management have commenced a program to redefine and refocus the Group’s businesses.

?Ufudo stated “In 2011, we have worked towards diversifying our business mix in order to enhance our portfolio returns. We will achieve this by creating a number of new businesses in our key focus sectors of Agriculture, Energy and Hospitality”.