TRANSCORP’s Board of Directors to discuss Dividend at its 87th Board meeting

The Board of Directors of Transnational Corporation of Nigeria Plc (NGX: TRANSCORP) will discuss a recommendation of dividend for the financial year 2021 at its up coming Board meeting. This is according to a publication on The Nigerian Exchange Limited sighted by Investogist.

TRANSCORP’s Board of Directors are scheduled to hold its 87th Board meeting on Tuesday, March 1, 2022. At the meeting they will consider among other things, the 2021 Audited Financial Statement and recommendation of dividend for the financial year in review.

TRANSCORP had commenced its Closed period on January 1, 2022 following the amendment to Chapter 17 of the Nigerian Exchange Limited’s Listing Rules.

Investopedia defines closed period as 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.

TRANSCORP had posted an improved Financial Statements for the 9 months period ended 30 September 2021. It grew its revenue from N54.37 billion to N85.58 billion year-on-year.

Its Profit for the period rose significantly from just9EPS N1.74 billion to N13.46 billion, while the Basic Earnings Per Share (EPS) grew to 17.57kobo from a negative value.

Despite the improvements in its Statement of Profit/Loss, its Balance Sheet still shows a worrying trend of increasing Trade and other receivables.

The Trade and other receivables went from N97.61 billion as at 31 December 2020 to N105.03 billion as at 30 September 2021.

A significant portion of the trade receivable relates to receivable from the Transmission Company of Nigeria Plc and NigerianBulkElectricity Trading Plc which are the regulatory bodies for the power business.

TRANSCORP’s dividend history in the past 5 years has been abysmal, Shareholders will be hoping for better dividend with the improved Earnings as at 30 September 2021.

A review of the dividend history by Investogist’s Analysts shows the below;

  1. 2016 Financial Year: No dividend
  2. 2017 Financial Year: 2 kobo per ordinary share
  3. 2018 Financial Year: 3 kobo per ordinary share
  4. 2019 Financial Year: 1 kobo per ordinary share
  5. 2020 Financial Year: 1 kobo per ordinary share
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