Recall that Dupe Olusola, the Managing Director, Transcorp Hotels Plc, had lamented how the firm was affected by the raging COVID-19 pandemic. Hence, according to her, in order to sustain the business, it became a necessity for the company to cut down its workforce.

Olusola said all executive members of Transcorp Hilton had taken a pay cut, adding that the sacking of some of the workers was also aimed at restructuring the company’s business operations.

Her words: “At the inception of the pandemic, we maintained a 100% salary payment to our over 900 employees in March and April. We also activated various cost-saving initiatives such as renegotiations of service contracts and restructuring of our loans;

 “We suspended further commitment to buy fixed assets and operating equipment as well as reducing our energy consumption and maintenance costs.

“Despite undertaking these, it has become apparent that more fundamental changes need to be made for the business to survive;

“To this end, our workforce headcount will be reduced by at least 40%, and our reward system will be optimised.”

This decision didn’t however settle well in the minds of the staff, as the workers are insisting that the company management must meet their demands.

On behalf of the workers, the Human Rights Writers Association of Nigeria (HURIWA) had urged President Muhammadu Buhari to intervene on the matter.

Similarly, the rights group accused Minister of State for Labour, Festus Keyamo, of hobnobbing with Transcorp’s top officials instead of protecting the interest of the people.

Incorporated in the year 1994, Transcorp Hilton is said to be one of the hospitality companies committed to redefining services standard across the continent.

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Her resignation was on Tuesday, July 21, 2020, disclosed, but the Board of Directors of Transcorp Hotels had accepted it since Monday, July 20, 2020. Although, she will remain in her position for the next months, which is when her resignation will take effect.

“We write to formally notify the investing public and The Exchange that the Board of Directors of Transcorp Hotels Plc at its meeting on the 20th of July 2020 accepted the resignation of Mrs. Helen Iwuchukwu as an Executive Director of Transcorp Hotels Plc with effect from 20th October 2020,” a statement from the company read partly.

Unmask NG however understands that Iwuchukwu’s resignation came on the heels of the company’s disclosed probability to record a revenue decline.

Recall that two months ago when Transcorp Hotels recorded significant revenue drop due to the raging COVID-19, the company made it clear that chances are high that its full-year financial result for 2020 will be very poor.

As seen on the Nigerian Stock Exchange (NSE), Transcorp Hotel’s group revenue in 2020 Q1 dropped to N4.17 billion, as against the N4.18 billion recorded in the first quarter of 2019. Similarly, the company’s earnings declined from the N3.99 billion generated in 2019 Q1 to N3.98 billion recorded in 2020 Q1.

“Transcorp Hotel plc started the year 2020 optimistic with detailed plans and budget to surpass the N20bn revenue performance achieved in 2019. With the Global Coronavirus Pandemic, the hospitality industry has been negatively impacted.

“Nigeria has witnessed an increase in confirmed cases which led to the closure of airports and flights and an official lockdown of the FCT issued by the Federal Government to ensure the effective combat of the virus. All of these have negatively impacted the hotel and its business activities in this period.

“The Company anticipates that its future results of operations, including the results for 2020, will be materially impacted by the coronavirus outbreak. However, given the speed and frequency of continuously evolving developments with respect to this pandemic, the Company cannot reasonably estimate the magnitude of the impact on its results and its operations, and, if the outbreak continues on its current trajectory, such impact could grow and become material to its liquidity or financial position,” a statement from the company read.

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As COVID-19 continues to ravage different sectors of the economy, including the hospitality sector, Transcorp’s group revenue for the period under review, dropped to N4.17 billion, compared to the N4.18 billion recorded in Q1 2019.

Similarly, its gross profit fell to N3 billion in 2020 Q1, from the N3.10 billion garnered in the corresponding period of last year.

Transcorp’s defense of financial performance and affected projection

According to Transcorp, its 2020 Q1 result was impacted by the lingering coronavirus pandemic.

A statement from the company read partly; “Transcorp Hotel plc started the year 2020 optimistic with detailed plans and budget to surpass the N20bn revenue performance achieved in 2019.

“With the Global Coronavirus Pandemic, the hospitality industry has been negatively impacted.”

“Nigeria has witnessed an increase in confirmed cases which led to the closure of airports and flights and an official lockdown of the FCT issued by the Federal Government to ensure the effective combat of the virus. All of these have negatively impacted the hotel and its business activities in this period.

“The Company anticipates that its future results of operations, including the results for 2020, will be materially impacted by the coronavirus outbreak. However, given the speed and frequency of continuously evolving developments with respect to this pandemic, the Company cannot reasonably estimate the magnitude of the impact on its results and its operations, and, if the outbreak continues on its current trajectory, such impact could grow and become material to its liquidity or financial position.”

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