Hospitality and Leisure services provider, Transcorp Plc has declared a profit after tax of N757.63 million in the first half of the year 2017.
The profit declared was N1.2 billion lower than previous year’s N1.9 billion, the company’s financial statements revealed.
In the half year earnings released by the firm, Transcorp disclosed that the group’s primary exposure to changes in US Dollars/Naira exchange rates had a negative impact on its profit.
The company said net foreign exchange gain included in other income reduced drastically by 98 percent to N4.7 million from N218million recorded in the previous year due to losses that arose mainly from US-dollar denominated financial instruments.
The company however stated that: “In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.”
The group’s management declared no interim dividend for the review period as net debt to equity ratio stood at 43 percent up, from 35 percent recorded six months ago.
“In 2017, the group’s strategy is to maintain a gearing ratio within 20% to 70% and a minimum B credit rating,” the company explained.