Some shareholders of Transnational Incorporation of Nigeria (Transcorp), have lamented the inability of the company’s management to deliver on its promise of dividend payment and return on investment since it began operation and almost six years after it was listed on the Nigerian Stock Exchange.
The shareholders said that the non-payment of dividend as contained in the company’s annual report published in some papers showed that hope for recouping their investment by way of dividend payout still remained a dream.
The President Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie, said the management needs to explain to them. “If a company had made a profit last year, and the former Chairman Prof. Ndi Okereke-Onyuike had wanted to pay us dividend, but the money was ploughed back, how come they are recording a loss this year. They ought to tell us what kind of investment they made to record this outrageous loss again.
Transcorp after a private placement wherein a unit of the company’s shares was bought at N1.00 got listed on The Exchange in 2007 at a unit cost of N7.50, and it promised to pay its first dividend in 2012.
But with a market which has suffered a value dip by almost 70 per cent since 2008, the hope of early recouping of investment is still shaky even as a unit cost of the company’s shares is being currently sold at 52kobo as at Thursday.
Investors’ hope was raised last year when the management of the company announced a turnover of N13.927 billion in its financial year ended December 2010 compared to N12.995 billion posted in same period of 2009. However, in apparent show that the company may not fulfil its promises to shareholders, Transcorp last Thursday announced a Loss of N4.666 billion in its Audited Report for the year ended December 31 2011.
The firm in its financial statement made available to the Exchange reported a Loss After Tax (LAT) of N4.666 billion in year 2011 compared to profit of N5.389 billion in 2010 end; indicating a loss of 13.4 per cent.
Loss Before Tax (LBT) and Exceptional Items also dipped by 13.8 per cent as the company posted N4.095 billion in 2010 end compared to pre-tax profit N3.497 billion in year 2011.
While LBT after Exceptional Items is N3.497 billion in the review period of year 2011 compared to PAT of N6.908 billion in year 2010 end; representing a loss of 49.4 per cent.
Further analysis of the company’s financial showed that turnover increased slightly by 1.1 per cent to N14.076 billion in year 2011 compared to N13.927 billion in the corresponding period of year 2010.
A senior broker who would not want his name mentioned in print, said it is certain that Transcorp management will not meet its proposed promise to investors, as most stocks in the market has had their value eroded.