TRANSCORP PLC: 2018 TOUGH? WHICH?

It has become almost a cliché to say that the year 2018 was tough for most businesses in Nigeria but not quite so for Transcorp PLC

According to figures for the year released recently by the group, the only factors that tried to hold the group to account were decline in Other income and, to an extent, growth in administration costs

Going for the group were 29.7% growth in core income to N104,162.8m from N80,285m though reduced to 28.6% increase in total income to N105,659.5m by Other income drop by 24.2% to N997.2m.

More good news came in the form of cost of sales growth at 27.5% to N55,910.4m; that is below the core revenue growth recorded. This resulted in gross profit growth by 32.5% to N48,252.4m.

It was this growth rate, 24.2% increase in administration costs to N14,600.3m tried to dampen but because it was lower than the gross profit rise, operating profit ended 33.1% up at N34,649.3m

From here on it was plain sailing for Transcorp PLC . Finance cost dropped by 0.95% to N9578.9m; Finance income increased by 0.24% to N499.5m and loss from foreign Exchange activities declined by 30.4% to N3167.8m.

The result? From 33% rise in operating profit ends as 82% leap in profit before tax to N22,402.1m from 2017's N12,305.5m.

In other words, Transcorp ended 2018 with 21.2% profit margin compared to 15% in 2017.

But stakeholders may have to hold back their broad  smiles abit. This is because liquidity position of the group did not end better. It grew worse to N32,429.4m deficit from 2017's N10,566m.

TRANSCORP PLC: Full year Nm
                         2018.          2017
Total income 105659.5.  82142.9
Core revenue 104162.8   82085.0
Cost of sales  55910.4.   43860.7
Gross profit.    48252.4.    36424.3
Other income     997.2.        1359.6
Administration 14600.3.  11751.9
Operating profit 34649.3. 26032.0
Finance cost       9578.9.    9670.5
Finance income    499.5.     498.3
Forex activity.   (3167.8). (4554.2)
Profit b4 tax       22402.1. 12305.5
Profit margin %      21.2.       15.0
Working capital (32429.4) (10566)

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