For ease of understanding

• Transcorp: Parent company.
• Transcorp Hotel. Subsidiary behind Transcorp Abuja hotel and other projects.
• Transpower: Subsidiary behind Ughelli Power, a stake in AEDC among other holdings

Transnational Corporation of Nigeria is a conglomerate with subsidiaries operating in the power and hospitality space.

The company few days ago released its results for the financial year ended December 2024.

FY 2024 numbers

Revenue increased by 107%, rising to N408 billion in 2024 from N197 billion in 2023.

Profit after Tax improved 188% year-on-year to N94.1 billion in 2024, from N32.6 billion in the same period last year.

Proposed dividend

The firm has proposed a final dividend for FY 2024 of 60 kobo. A final dividend is one paid at the end of a company’s audited financial year

It had sometime last year paid an interim dividend of 40 kobo (actual cash 10 kobo but there was a share reconstruction, hence the 40 kobo). An interim dividend dividend is one paid before the end of a company’s audited financial year.

Total dividend amounts to N1.

Small Ts are better

In my opinion, shareholders are better off holding units of the subsidiaries (small Ts) than the parent company. I find the payout by the parent company rather disappointing. The table below shows my point.

For ease of understanding, i have focused on the final dividend paid by Transcorp the parent, and its earnings from final dividends paid by subsidiaries Transcorp Hotel and Transcorp Power.

Transcorp (the parent) paid a final dividend of 60 kobo a share amounting to N6.09 billion.

From its subsidiaries final dividend it earned over N18.3 billion. N4.9 billion from its stake in Transcorp Hotel and N13.3 billion in Transcorp Power.

In essence, Transcorp (the parent) paid out 33% of its earnings from these two firms.

Shareholders need to push for a bigger payout by the company or for the shares held in the different entities to be spun off to them.