Modupe Gbadeyanka
By Modupe Gbadeyanka
With the Nigerian economy on a gradual path to recovery, companies operating in the country are gradually bouncing back on their feet.
This was demonstrated by the half year earnings released today by Transnational Corporation of Nigeria (Transcorp) Plc.
In the first half of this year, the firm said it recorded a profit after tax of N4.2 billion compared with N798.7 million it recorded in the corresponding period of 2016.
This feat was largely due to the different conscious plans put in place by management of the company to drive its revenue to N34.2 billion during the period from N2.1 billion in the first half of last year, when the economy was not friendly.
In the last five months, the country’s inflation has been moderating, giving investors hopes that businesses would return to profitability very soon.
In the financial statements released by Transcorp on Monday, its operating profit rose to N9.5 billion from N1.8 billion declared on June 30, 2016, while the profit before tax stood at N4.5 billion as at June 30, 2017 versus N1 billion in the corresponding period of 2016.
Transcorp, incorporated on November 16, 2004 as a private limited liability firm in Nigeria, was in December 2006 listed on the Nigerian Stock Exchange (NSE) following a successful initial public offer (IPO).
The group has interests in hospitality, agro-allied, power, as well as oil & gas sectors.
In the financial statements, Transcorp Plc said its piece of land at Rumens Road Ikoyi measuring approximately 4,876.15 square meters, was valued by an independent valuation named Ubosi Eleh and Co to determine its fair value of the land as at 31 December 2016.
“The title to this property was revoked in a newspaper publication dated 29 May 2015 by a revocation order of the Minister of Lands, Housing & Urban Development (The Ministry).
“A suit has been filed at Federal High Court challenging the legality of the revocation. An interim Order of injunction was obtained restraining Minister of Lands, Housing & Urban Development from giving effect to the revocation order (FHC/L/CS/794/2015 TNC V AG FEDERATION & MINISTER OF LANDS).
“The court subsequently struck out the suit while ruling on a preliminary objection challenging its jurisdiction.
“The company filed a notice of appeal against the ruling of the Federal High Court and an application for stay of proceedings both at the Court of Appeal and the Federal High Court. The Federal High Court granted the Company’s application and stayed proceedings in the suit pending the determination of the appeal.
“As at the date of the approval of these financial statements, the directors, based on representation from their legal advisers expects that there is no likelihood of unfavourable outcome in the suit.
“The company has agreed terms of settlement with the Ministry and this will be subsequently filed in court to resolve this issue,” it said.
