Transcorp Hotels Plc suffered a major decline last year as the COVID-19 pandemic and economic disruptions impacted the operations of the hospitality and tourism group.
Interim report and accounts of the group for the year ended December 31, 2020, released at the weekend showed that total sales halved from N20.41 billion in 2019 to N10.15 billion in 2020. The group recorded a pre-tax loss of N8.93 billion in 2020 as against a profit of N1.12 billion in 2019. After taxes, net loss stood at N8.98 billion in 2020 compared to a net profit of N614 million in 2019.
Shareholders of Transcorp Hotels had last month concluded recapitalisation of the hotel and leisure group with the injection of N9.93 billion in new equity funds.
Transcorp Hotels, owners of Transcorp Hilton Abuja and Transcorp Hotels Calabar, had in the fourth quarter of 2020 sought to raise N10 billion through the issuance of 2.66 billion ordinary shares of 50 kobo each at N3.76 per share to prequalified shareholders. The rights were pre-allotted to existing shareholders on the basis of seven new ordinary shares for every 20 ordinary shares of 50 kobo each held as of Monday, July 13, 2020.
The official listing report showed that the rights issue recorded a subscription level of 99.34 percent with shareholders accepting 2.642 billion ordinary shares of 50 kobo each at N3.76 per share. The newly issued shares were listed last month at the Nigerian Stock Exchange [NSE].
With the listing of more than 2.642 billion ordinary shares, the total issued and fully paid-up shares of Transcorp Hotels increased from 7.60 billion to 10.24 billion ordinary shares of 50 kobo each.
Managing Director, Transcorp Hotels Plc, Dupe Olusola, said: “We are not resting on our oars but working round the clock to innovate new products and services to further delight our guests, notable of such is the launch of asset-light strategies to deepen our hospitality footprints across Africa,” Olusola said.
She added that while the world has been greatly impacted by the COVID-19 pandemic, with the hospitality industry being one of the hardest hits, Transcorp Hotels is optimistic about a great recovery for the sector.
By Our Correspondent
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