NIGERIAN Aviation Handling Company (nahcoaviance) has said its Profit Before Tax (PBT) has grown to N1.34 billion in the year ended December 31, 2019, representing 166 per cent increase when compared to the same period in 2018.
This is just as the Group explained that it has upgraded its warehouses in Lagos, Kano and Abuja airports, and has began the implementation of the new staff condition of service, which enhanced workers’ welfare and promoted industrial harmony in the group.
Chairman of NAHCO Dr. Seinde Fadeni, stated this on Thursday in Lagos at the 2019 Annual Reports and Accounts of its Annual General Meeting (AGM), said ground handling company also paid N487 million as dividends at 30 kobo per ordinary share of 50 kobo each, as approved by its shareholders.
Fadeni in his speech, which was transmitted virtually to shareholders in compliance with the World Health Organisation (W.H.O) and Presidential Taskforce (PTF) on Covid-19 pandemic disclosed that NAHCO in its PBT 2018, had N503.237 million, but grew to N1.34 billion in 2019.
He attributed this growth to the several measures put in place during the financial year to control costs and income revenue by the company.
According to him, Profit After Tax (PAT) increased significantly from N196.8 million in 2018 to N717.2 million in 2019, representing 264 per cent increase within the period.
Also, Fadeni added that the group closed the year ended December 31, 2019 with total revenue of about N9.99 billion, a marginal increase of 2.3 per cent over the 2018 figures of about N9.8 billion.
He, however, expressed that the year would have ended on a better note, but the United States – China trade issues and the virus in the Asian country affected importation and reduced flight frequencies at the tail end of 2019.
He added: “In line with our business strategies, the initial problems of increased costs of operations and administrative expenses have been taken on board by management and are being released.
“The transformation agenda, being facilitated by KPMG, is on course. This transformation agenda includes our five-year strategic plan and this plan is anchored on five strategic pillars and three key enablers.
“The strategic transformation pillars are; operational excellence, digital transformation, people and culture transformation, organic and inorganic growth, and diversification and the key enablers are: adequate funding and capitalisation, financial grip and enhanced risk management.”
Fadeni added that the year 2019 was fairly good to the company, adding that the management was working to win more clients, while it renewed it a number of its existing contracts within the past year.
Also speaking, Mrs. Olatokunbo Fagbemi, the Group Managing Director, NAHCO, said that in the year under review, the group’s PBT increased to N1.340 billion, while group’s operating cost decreased by 1.4 per cent and administrative expenses decreased by 12.1 per cent.
Within the year, Fagbemi explained that the group expended resources into re-fleeting, which produced immediate result as the company was able to provide a more efficient service, reduced degreasing and cost of maintenance.
She added that the company upgraded the warehouses in Lagos, Kano and Abuja airports, adding that it also began the implementation of the new staff condition of service, which enhanced workers’ welfare and promoted industrial harmony in the group.
She added: “In 2019, the implementation of the five-year 2019 to 2023 transformation plan, which was developed in 2018 after a business review of your company by board and management, commenced with a 12-month programme code named Project Falcon.
“NAHCO staff and management are working with KPMG in the implementation and this has started with focus on operational excellence, culture transformation and optimising technology within your company.
‘Last year, we announced an asset acquisition plan of over N3 billion. Management is grateful to the board fir its timely approval of this asset renewal plan and the aggressive purchase of ground support equipment