Moreover, the company’s gross profit fell by 0.5 per cent to N1.39 billion in 2012 as against N1.4 billion in 2011 while profit after tax declined by 16.4 per cent to N357.51 million compared to N427.73 million in 2011 and net assets fell by 2.7 per cent to N2.72 billion from N2.79 billion in 2011.
Speaking at its 32nd Annual General Meeting (AGM) in Abuja, the hotel’s Chairman, Mr. Goodie Ibru attributed the decline in performance to insecurity prevalent in the country last year.
Mr. Ibru said, “during the year, security situation deteriorated especially in the northern part of the country which led to several countries using travel alerts to their citizens and international travel arrivals to the countries dropped.
The Chairman however expressed optimism that 2013 will be a better year if the issue of power and security is tackled.
According to him, “we will have a better 2013 and years in the future once the issue of insecurity is addressed and the issue of power is assured.”
While giving a report of its annual event and accounts, Mr. Ibru admitted that security and power were the major challenges the hospitality business encountered.
He said, “The hospitality industry was adversely affected, massive theft of crude oil negatively impacted the revenue generation capacity of the government and thus curtailed its spending power.
“Security is the major issue because it scared some people away and that impacted negatively on our result; Boko Haram and others but I am however pleased to announce that government is addressing that issue and things are going back to normal.
“Energy; we spend a lot of money on diesel and of course that has cost implication. We hope that things will improve that will make us rely less on power generation from our generators and rely on national grid.”
The Chairman commended the actions of government in the sale of Power Holdings Company to private investors.
“It is a good development that the government is privatizing Power Holdings Company of Nigeria Plc and we do hope that in the very near future, the supply of power from the national grid will be more steady and it will reduce cost of doing business in the hospitality industry.”