Why I Have Refused To Buy Any Nigerian Company Shares In Over A Decade, Will Transcorp Group Make Me Have A Change Of Mind...By CKN


After getting my fingers burnt during the banks consolidation days of Charles Soludo , i vowed never to purchase any shares of any Nigerian company again

When i was growing up , buying shares was the in thing , i remember my dad buying shares of many blue chip companies in Nigeria 

He had a file for them , at the end of the year , he smiles to the banks as he reaps bountifully from the dividends 

He sold some atimes to raise money for some of his needs 

On his demise , we inheritted those shares , most of them we deposed of and made money out of them 

Based on this premise , i was delighted when i got my first job , i vowed to invest in same ventures like my dad

A good opportunity came in early 2000 when a particular indigenous oil company decided to sell shares , i jumped at it and bought the much i could afford which ran into few thousands of Naira 

I thought i have arrived, but years down the line , i regretted the adventure 

When i see my dividends at the end of every financial year , i knew i don enter one chance ( as we say in Nigeria ) 

Trying to sell the shares was a big burden 

The shares value have reduced over the years to about 35% of my initial investment 

When Charles Soludo during his CBN started his Bank consolidation programme , the banks unleashed their skimpy skirt wearing light complexion marketers at some of us 

We were conjoled to buy shares from several of the banks with mouth watering offers 

Some staff of the banks were even forced to buy shares in lieu of salaries, some were given loans to do same 

I bought shares of three of the banks , today that was another huge mistake

Economic meltdown, devaluation of the naira and many other government economic policies messed up those investments by some of us 

Dividends from such shares are nothing to write home about 

There and then i vowed never to buy any shares of a Nigerian company again no matter how attractive it looks ( where is the money sef , no be who see money chop go save in Nigeria now )

But it seems i may have a rethink after seeing the news coming out of Transcorp Group 

The latest report of the company that is into hospitality business, power etc shows very positive signs that the company maybe different from others 

With over N4bn being paid as dividends to its shareholders just within one year , its obvious that the company is bringing something new to the table 

Transcorp records is published below 

Interim Dividend paid per company

Transcorp Plc: N4,064,799,029.30

Transcorp Power: N11,250,000,000

Transcorp Hotels: N1,024,252,841.10

Total Interim Dividend Paid - N16,339,051,870.40

According to the company Shareholders of Transnational Corporation Plc (Transcorp Group), along with its listed subsidiaries, Transcorp Hotels Plc and Transcorp Power Plc, have paid interim dividends to their shareholders for the first time in the companies' history. 

This milestone it says reflects Transcorp Group's commitment to delivering sustainable value to its shareholders and demonstrates the strength and resilience of its diversified portfolio. 

Total Interim Dividend paid by Transcorp Group: N4.065 billion 

Highlight of Transcorp Plc’s H1 2024 Results:

▪ Revenue Growth: Significant increase of 114%, to N175.4 billion, compared to N82.1 billion in H1 2023.

▪ Profit Before Tax: 283% growth, amounting to N70.9 billion in H1 2024, compared to N18.5 billion in the same period last year.

▪ Total Assets: Grew by 18%, from N529.9 billion in December 2023 to N625.1 billion in H1 2024.

▪ Shareholders’ Funds: Increased by 25% from N187.3 billion in December 2023 to N234.4 billion at the end of H1 2024 due to profit accreting to retained earnings. 

▪ Operating Expenses: Increased by 50% period to N21.2 billion in H1 2024, reflecting the impact of inflation and cost of operations. The interim dividend paid to shareholders matches what was paid for FY 2023, an affirmation of Transcorp’s commitment to rewarding its shareholders progressively, as its long-term investments yield impressive returns. 

Tony O. Elumelu, CFR, Group Chairman, Transcorp Group, in a statement following the release of the H1 2024 results stated: "Transcorp exemplifies delivering a vision, executing through operational excellence and consistently creating the transformative impact that we are renowned for. 

We are building to last, across key sectors in Nigeria. 

Owen Omogiafo, OON, President/Group Chief Executive Officer of Transcorp Group, attributed the Group’s remarkable growth to its commitment to operational excellence, strategic management of its portfolio, and innovation. "Transcorp Group and its subsidiaries remain firmly committed to delivering exceptional and long-term value to our stakeholders."

Transcorp Hotels

Total Interim Dividend paid by Transcorp Hotels: N1.024 billion

Highlights of Transcorp Hotels H1 2024 Results 

• H1 2024 Revenue hit N29.7 billion, up 61%, in comparison with N18.5 billion reported in H1 2023. 

• Profit before Tax rose by 192%, amounting to N10.5 billion in H1 2024, compared to N3.6 billion during the same period last year. 

• Profit after Tax grew by 157% year-on-year to N6.6 billion in H1 2024, compared to N2.6 billion during the same period last year. 

• Occupancy grew to 81% in H1 2024, up from 77% in H1 2023.

• Revenue per Available Room (RevPAR) increased by 57% to N162,999 from N103,646 during the same period in 2023. 

Transcorp Power

Total Interim Dividend paid by Transcorp Power: N11.25 billion

Key Financial Highlights, H1 2024:

• Revenue Growth: Achieved an impressive total revenue of N135.4 billion in H1 2024, a growth of 142% from N55.9 billion in H1 2023.

• Net Finance Cost: Fell by 37% to N1.3 billion, a reduction from N2.1 billion in H1 2023.

• Profit Before Tax: Recorded a growth of 214%, to N50.9 billion, compared to N16.2 billion in the previous year.

• Total Assets: Grew by 45% to N322.9 billion as of June 30th, 2024, up from N223.3 billion at the beginning of the year, driven by robust operational performance.

• Shareholders’ Funds: Increased by 64% to N94.6 billion as of June 30th, 2024, up from N57.8 billion as of 31st December 2023, boosted by retained earnings.

With such impressive performance in the last one year and the transparency with which it made its records open , there seems to be hope 

My hope has been rekindled, it may be time to give buying shares a trial once again 

Make i go make enquiries how i fit buy their shares

The time to save for the rainy day is now and here

Chris Kehinde Nwandu is a journalist, blogger , Law Graduate and a member of the Chartered Institute of Arbitrators ( UK )

CKN NEWS

Chris Kehinde Nwandu is the Editor In Chief of CKNNEWS || He is a Law graduate and an Alumnus of Lagos State University, Lead City University Ibadan and Nigerian Institute Of Journalism || With over 2 decades practice in Journalism, PR and Advertising, he is a member of several Professional bodies within and outside Nigeria || Member: Institute Of Chartered Arbitrators ( UK ) || Member : Institute of Chartered Mediators And Conciliation || Member : Nigerian Institute Of Public Relations || Member : Advertising Practitioners Council of Nigeria || Fellow : Institute of Personality Development And Customer Relationship Management || Member and Chairman Board Of Trustees: Guild Of Professional Bloggers of Nigeria

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