Barely five months after being appointed, Helen Iwuchukwu has resigned as the Executive Director of Transcorp Hotels Plc.
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.