Ikeja Hotel Plc, owners of Lagos Sheraton Hotels, Wednesday reported a loss of N128 million for the nine months ended September 2017, compared with a loss of N2.554 million in the corresponding period of 2016.
According to results made available on the Nigerian Stock Exchange (NSE) website, Ikeja Hotel recorded a revenue of N3.706 billion in 2017, down marginally from N3.936 billion in 2016. Cost of sales went up from N1.825 billion to N2.272 billion, making the company to end the period with gross profit of N1.43 billion, down from N2.111 billion in 2016.
Other income improved from N59 million to N138 million, while sales and distribution expenses were reduced from N200 million to N192 million. Similarly, administrative and general expenses fell from N1.607 billion to N1.092 billion, leading to an operating profit of N287 million, down from N363 million in 2016. However, finance cost rose from N365 million to N415 million in 2017. Consequently, Ikeja Hotel ended the nine months with a loss of N128 million.
The Securities and Exchange Commission (SEC) last May has announced the dissolved the board of Ikeja Hotel Plc due to unresolved internal crisis involving some majority shareholders of the company.
The capital market regulator had said the “proactive measure has become necessary in order not to allow the warring parties take certain actions that would give them an advantage over one another.”
According to the SEC, to forestall chaos in the organisation, the Commission and other distinguished personalities, had previously held various meetings with the existing board towards resolving the crises but the company continues to be plagued with unhealthy corporate governance practices in disregard with the Code of Corporate Governance for public companies.
SEC added that as a public company, it is paramount that the activities of the company are conducted within the confines of existing corporate governance regulations in the Nigerian capital market, to ensure the protection of minority shareholders and other investors.
“Having failed to resolve its lingering crisis, the Commission in exercise of the powers conferred on it by the Investment and Securities Act, 2007 to protect investors and the integrity of the securities market, hereby approves the appointment of an interim board for the company with Chief Anthony Idigbe, SAN as interim Chairman” SEC said.
Meanwhile, the equities market maintained a downward trend yesterday as the NSE All Share Index (NSE ASI) depreciated 0.34 per cent to close at 36,652.82 points, compared with the depreciation of 0.15 per cent the previous day.