NAHCO Increases Revenue by 44% and Pays Stakeholders N665 Million in Dividends
July 31 (THEWILL) — Nigeria’s leading ground handling company, Nigerian Aviation Handling Company Plc (NAHCO Plc), has paid out N665 million to its shareholders as its revenue increased by 44%.
At its 41st Annual General Meeting (AGM) held in Lagos on Friday, July 29, 2022, the company’s Board of Directors informed shareholders that the group’s turnover stood at N10.2 billion, an improvement of 44% compared to the performance of the 2020 financial year, despite the effect of the Covid-19 pandemic on its operations.
“As a reward for their trust and confidence in the company, shareholders were rewarded with a gross dividend of 41 kobo per ordinary share of 50 kobo each, amounting to 665 million naira. an increase of 341% over the N12.5 kobo per common share paid to shareholders at the end of fiscal 2020,” said a statement signed by Samuel Akinrinmade, Head of Corporate Communications for NAHCO.
The company also distributed one free share for every five shares held by existing shareholders and assured shareholders that the 2022 dividend could be much higher, based on year-to-date performance in 2022.
The group’s 2021 annual report and accounts said revenue of N10.2 billion was an improvement from the N7.1 billion it earned in 2020. NAHCO Group achieved a Pre-tax profit (PBT) of N924,855 million in 2021, showing a 156% increase over the previous year, which was N361,279 million. Profit After Tax (PAT) also increased to N771,615 million, indicating a growth of 155% from N302,131 million for FY2020.
NAHCO Plc’s total shareholders’ equity in the reporting year was N7 billion, an increase of 9% compared to 2020.
Speaking on the occasion, Dr. Seinde Fadeni, Group Chairman, assured the meeting that the company will continue to be the leading ground handling company in Africa in terms of market share, customer base, turnover and profitability.
Fadeni explained that the Nigerian economy was fragile in 2021, having emerged from recession in the last quarter of 2020, but despite this “Our goal in 2021 was responsible and inclusive growth, which enabled us to be a source stability for our customers during the difficult times.
Closing out the second year of unprecedented disruption, low interest rates and market volatility, NAHCO Plc achieved revenue of N10.2 billion with an improved capital base, growth in customer deposits , improved liquidity and debt ratios.
He lamented that the current high exchange rate and difficulty in accessing foreign exchange and the global increase in crude oil prices have dampened the positive projections for 2022.
The Chairman further explained that despite various challenges, NAHCO had invested over N4 billion in the acquisition of Ground Support Equipment (GSE) and assured shareholders that the company would achieve better results over the course of the year. fiscal year 2022.
He added: “With the announcement of the new safety threshold by the Nigerian Civil Aviation Authority (NCAA), which has prescribed a minimum price for the services, we hope that the issue of price war and unhealthy competition will be a thing of the past as competition will now be based on service, not price Management has a mandate not to rest on its laurels and ensure the business performs even better in 2022 . »
He assured shareholders that the company will continue to strive to be the leading ground handling company in Africa in terms of market share, customer base, revenue and profitability.
Also commenting on the future of NAHCO Plc, Mr. Indranil Gupta, the Group Managing Director, said that with the addition of a new GSE to the fleet and the significant investments in technology, the NAHCO service will be totally different. the past. He further hinted at carefully planned strategic investments that will further inform the company’s future and called on shareholders to continue to support its growth.
One of the shareholders also praised the caution of NAHCO’s board and management over the past year, despite the pandemic crisis.
NAHCO Plc is a diversified Nigerian group with interests in air cargo services, aircraft handling, passenger facilitation, crew transport and aviation training, airport free zone and logistics. The company currently serves several customers at 19 airports in Nigeria and handles the largest domestic, foreign and cargo airline market share.
NAHCO was privatized by the Federal Government of Nigeria in 2005 and listed on the Nigerian Stock Exchange in 2006. It is one of the fastest growing stocks in 2022 at NGX, gaining over 175% , after starting the year at N3. 73 and at one point trading at N7.79.
The AGM which was held both physically and virtually was well attended by stakeholders.