The Board of Directors of Transcorp Hotels Plc (NSE Ticker: TRANSCOHOT) has scheduled its 76th Board meeting to hold on October 14th, 2020, to consider among other things the Unaudited Financial Statement of the Company for Q3, 2020.
This was contained in a corporate release signed by Chike Anikwe, the Group Company Secretary (Ag.) and published on the Nigerian Stock Exchange on Friday 25th September, 2020.
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Consequently, the Company notified The Exchange and the Investing public of commencement of its closed period from September 29, 2020 up to twenty-four (24) hours after the release of the Company’s Q3, 2020 Unaudited Financial Statement.
The close period (or closed period) is the time between the completion of a listed company’s financial results and the announcing of these results to the public. The close period is typically regarded as the one-month period preceding the release of a company’s quarterly results, and the two-month period before the release of its annual results.
About the Company
Transcorp Hotels Plc (the Company or the parent) was incorporated under the Companies and Allied Matters Act on 12 July 1994 as a private limited liability company and is domiciled in Nigeria.
Following a successful initial public offer (IPO), the Company was in January 2015 listed on the Nigerian Sock Exchange and its shares are publicly traded. The registered office is located at 1 Aguiyi Ironsi Street, Federal Capital Territory, Abuja, Nigeria.
The Group is principally engaged in hospitality activities; rendering of hotel services by providing luxury accommodation, exotic cuisines, fully equipped meeting rooms and leisure facilities to business travelers and tourists from all over the world.
The Covid-19 Pandemic has significantly impacted the operations of the company, and the management had acknowledged this fact in its half year financial result for the period ended 30 June, 2020.
In a statement they said, “The Company anticipates that its future results of operations, including the results for 2020, will be significantly impacted by the corona virus outbreak.
“However, given the speed and frequency of continuously evolving developments with respect to this pandemic, the Company cannot reasonably estimate the magnitude of the impact on its results and its operations.
“The company’s management continues to implement several precautionary measures to ensure the safety and security of all its guests and team members against COVID-19 virus. We also continue to explore other opportunities the pandemic presents in order to minimize the impact on our operation.”
The Group saw its revenue drop by 48.60% in the first half of the year, from N9.302 billion to N4.781 billion, while it went from a profit after tax of N556.920 million in H1 2019, to a loss of N3.637 billion in H1 2020.
View of Analysts at Investogist
Even though business is returning to normal in Nigeria since the lockdowns has been lifted, we do not envisage a return to profitability for this premium hotel operator.
We expect the hotel group to report a loss for the full year of 2020, as the limited tourism and business travels will continue to impact its operations.
The shares of the company hardly trade on the floor of the Nigerian Stock Exchange, in the last 7 days, it has traded only 32,099 units. It closed at N4.00 at the end of trading on Friday, having traded only 5,378 units.
Investogist have no opinion on this stock.
Written by;
Nnamdi M.