STILL TOUGH FOR TOURIST COMPANY OF NIGERIA PLC

It is still tough going for Tourist Company of Nigeria Plc with no end visible this financial year, according to nine months figures and forecast for the last quarter to June released recently.

By March, TCN plc was still very much in the loss league and had recorded a loss of N2354.7m, which is multiples of the N572m loss reported at the same time in 2016 financial year.

Core revenue had increased marginally by 2.94% to N2402.4m on the back of 3.15% increase in hospitality income to N1200m and 2.71% increase in gaming earnings to N1112.1m. but none of these increases could match 14% hike in expenses to N2839.8m thus guaranteeing N437.4m operating loss, up 180%.

Then with finance costs rising astronomically to N1917.4m from N415.8m previously, the stage for the huge jump in loss was set.

The net result waas that by March, TCN Plc had accumulated losses totalling N14.596bn compared to N12.24bn previously and shareholders fund had been wiped out completely for a deficit N9340.3m balance.

Yet, TCN Plc does not see much changing in the rest of the financial year to June. It infact forecasts final year end loss of N2777.6m as against N2354.7m so far after an operating loss of N632.4m compared to N437.4m so far and with finance cost projected to hit N2145.2m.

Interestingly, within the nine months TCN plc increased receivables by 97.9% to N143.7m while cash on hand dropped by 6.55% to N1507.1m and long term borrowings climbed up 12.2% to N18.156bn.

It still manages to retain some control over its liquidity though as working capital only dropped to N426.6m from N461.1m previously.

However, with loss still mounting and shareholders fund already well in the red, many stakeholders must be looking desperately for when a glimmer of light could show at the end of the tunnel.

TOURIST COMPANY OF NIGERIA PLC Nine Months; Nm
                                                                  2017                     2016
Revenue                                                 2402.4                   2333.8
expenses                                                2839.8                   2490.0
Operating profit                                    (437.4)                   (156.2)
Finance costs                                        1917.4                      415.8
profit before tax                                   (2354.7)                  (572.0)
Working capital                                      426.6                      461.1
Accumulated losses                             14596.3                  12241.5
Borrowings                                          18156.8                 16187.1

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