Transnational Corporation of Nigeria Plc has said that the company is further set on the path of profitability following the strategic investments it made last year.

The Chairman of the company, Mr. Tony Elumelu, stated this at the company’s 6th Annual General Meeting in Abuja on Friday.

A statement from the company on Monday, quoted him as saying that the various investment and strategic decisions undertaken by the company had begun to pay off for the business.

He said, “The conglomerate recorded a strong improvement in its operating and financial performance as it begins to experience the benefits of recent changes made in its strategic direction and key management, along with a renewed focus on corporate governance.

“During the year, the conglomerate took several significant steps in its key sectors of Agri-business, energy and hospitality, that would no doubt see it taking its rightful place as a key player in the economic development and transformation of Nigeria.”

He explained to shareholders that Transnational Hotels and Tourism Services Limited, another subsidiary of Transcorp, had commenced the execution of its expansion plans to fully utilise the massive unutilised land on its Transcorp Hilton Abuja site and roll out new hotels across major economic centres in Nigeria such as Lagos and Port Harcourt.

He stated that in addition, Transcorp Energy Limited, the energy subsidiary of Transcorp, had signed a partnership agreement with Symbion Power, a US-based energy company, which would lead to a significant increase in power production, for the benefit of the nation.

The company reported an increase of 88 per cent in its operating profit for the year ended December 31, 2011, as its operating profit rose to N1.4bn.

Its result also showed that its revenue and gross profit also rose byN451m or 19 per cent.

The President and Group Chief Executive Officer, Mr. Obinna Ufudo, said, “In 2011, we have worked towards diversifying our business mix in order to enhance our portfolio returns.

“The results indicated that as part of its transformation in 2011, Transcorp resolved legacy issues across the group and necessary adjustments were made in the accounts to reflect this.”
 

Source: Punch