The shareholders of Nigerian Aviation Handling Company Plc (NAHCo) have cause to smile as the Board of Directors has recommended a dividend payment of N406 million for the year end December 31, 2017. The dividend, which translates to 25 kobo per share, is expected to be approved by shareholders at the forthcoming Annual General Meeting (AGM).
Despite the challenges in 2017, NAHCo, which provides aircraft, passenger and cargo handling services and other related services, weathered the storm to end the year with higher profit after tax (PAT). Specifically, the company recorded a turnover of N7.926 billion in 2017, compared with N7.956 billion in 2016. Finance cost was reduced from N545 million in 2016 to N213 million in 2017, while Profit After Tax stood at N776 million in 2017, from N581 million in 2016. The bottom-line showed an increase of 34 per cent. Earnings per share improved from 36 kobo to 48 kobo. Hence, the board of directors has recommended a dividend payment of 25 kobo, which is higher than the 22 kobo paid the previous year.
Meanwhile, the company has begun 2018 on a very bright note, recording significant growth in PAT for the first quarter (Q1) ended March 31, 2018. According to the results released by the Nigerian Stock Exchange (NSE), NAHCo reported a turnover of N2.188 billion in Q1 of 2018, up from N1.786 billion in the corresponding period of 2017.
Finance income improved from N30.916 million to N64.495 million, while the company was able to reduce finance cost to N44.536 million, from N55.715 million in 2017.
Profit Before Tax jumped to N117.405 million in 2018, compared with N1.026 in 2017, while PAT followed same positive trajectory, rising to N97.566 million, from N1.026 in 2017.
The Q1 results are the first set of results produced by the Managing Director/CEO, Idris Yakubu, who took over the running of the company in November 2017.
Market analysts said with the Q1 performance, Yakubu, a former banker, who has an extensive experience in delivering agreed strategic business imperatives, is bringing his experience to bear in the company to the delight of all stakeholders.
Elated shareholders of NAHCo had last year commended the board and management for the improved results despite the challenging operating environment. The shareholders pledged their support for better future results and urged the board and management to sustain the performance.
Chairman of NAHCo, Usman Arabi Bello had informed the shareholders that in spite of the recession and the global weakness in the aviation sector, the company’s performance was commendable.
“Our resilience as a company and our debt management strategies resulted in bond repayment of the N2.15 billion in the third quarter of 2016,” he said.
Speaking on the diversification programme, Bello noted that NAHCo Free Trade Zone (NFZ) that was approved by shareholders in 2011 as a subsidiary of the company had achieved some milestones.
Some of the services offered by the NFZ include supply chain management, logistics, equipment leasing and other value-added services. Phase I of its development has been completed and now operating at almost full capacity. The Company is currently making preparations to start building phase II of its masterplan.