Transcorp Hotels (NGX: TRANSCOHOT) Plc grew profit after tax by about 5% to N15.54 billion for the nine months ended 30 September 2026, even though revenue slipped.
The unaudited results were approved by the Board on 15 October and filed with the Nigerian Exchange on 16 October.
Group revenue fell 2.6% to N69.46 billion from N71.30 billion a year earlier. Rooms revenue was broadly flat at N46.29 billion, while food and beverage revenue dropped to N19.27 billion from N21.02 billion.
Lower cost of sales (N16.15 billion against N17.26 billion) kept gross profit at N53.32 billion, close to last year’s N54.05 billion.
Profit before tax edged up to N22.53 billion, and a lower tax charge of N6.98 billion (N7.58 billion in 2025) lifted profit after tax.
Earnings per share rose to 152 kobo from 145 kobo.
The July–September quarter was less rosy. Revenue grew 2.7% to N25.04 billion, but operating expenses jumped to N9.97 billion from N7.67 billion.
As a result, quarterly profit after tax fell to N5.00 billion from N6.14 billion, a decline of about 19%.
The balance sheet changed significantly. Borrowings rose to N54.96 billion from N10.52 billion at the end of 2025, driven mainly by a new N42.92 billion loan at 22% interest, maturing in March 2031. Finance costs more than doubled to N5.91 billion.
Much of that cost was offset by finance income of N4.46 billion, up from N0.52 billion, most of it interest on loans to related companies.
Related-party receivables rose to N42.77 billion, including N25.26 billion from parent Transnational Corporation Plc and N14.03 billion from Transcorp Power Plc.
This pushed total assets to N206.82 billion from N159.91 billion.
Operating activities used N15.93 billion in cash, against N18.82 billion generated a year earlier, largely because of the build-up in receivables.
The company paid N13.32 billion in dividends, covering the 2025 final dividend of N1.20 per share and a 2026 interim dividend of 10 kobo.
It also spent N6.28 billion on property, plant and equipment. Cash and bank balances closed at N20.34 billion, up from N16.96 billion.
Total equity stood at N97.55 billion. The company has met the NGX free float requirement, with a share price of N290.50 at period end.
There are no going-concern concerns, given the working capital surplus and a 12-month cash flow forecast showing that the group can meet its obligations. Investors will likely watch whether the Transcorp Centre, commissioned in 2025, lifts revenue, and how quickly related-party receivables convert to cash,
Administrator and Writer
