THE Nigerian Aviation Handling Company Plc (NAHCO Plc) at its 41st Annual General Meeting (AGM) in Lagos held both physically and virtually, informed Shareholders that the group turnover stood at N10.2 billion, representing a 44% improvement over the 2020 financial year performance, despite the effect of the Covid-19 pandemic on its operations.
At the AGM which held on the 29th of July 2022, the Board announced to shareholders the reward of gross dividend of 41 kobo per ordinary share of 50 kobo each, amounting to N665 million as a reward for their continued trust and belief in the company.
This was an increase of 341% over the N12.5 kobo per ordinary share paid to shareholders at the end of the 2020 financial year.
The company also gave out one bonus share for every five shares held by the existing shareholders and assured the Shareholders that the 2022 dividend may be way higher based on Year-to-date performance in 2022.
The 2021 annual report and accounts of the group indicated that the N10.2 billion revenue was an improvement from the N7.1 billion it earned in 2020. The NAHCO Group earned N924,855 million Profit Before Tax (PBT) in 2021, showing 156% increase from the previous year, which was N361,279 million.
Profit after tax (PAT) also increased to N771,615 million, indicating 155% growth, compared to N302,131 million of 2020 financial year. NAHCO Plc total equity under the year in review was N7 billion, showing an increase of 9% when compared to that of 2020.
Dr. Seinde Fadeni, the Chairman of the Group assured at the meeting that the company would continue to be the leading ground handling company in Africa in terms of market share, client base, revenue, and profitability.
Dr. Fadeni explained that the Nigerian economy was fragile in 2021, after exiting recession in the last quarter of 2020 but despite this “Our focus in 2021 was a responsible and inclusive growth, which allowed us to be a source of stability for our customers during the challenging times.
Closing the second year of unprecedented disruption, low interest rates and market volatility, NAHCO Plc earned N10.2 billion in revenue with improved capital base, growth in customers deposits, liquidity, and improved gearing ratios.’’
He lamented that the current high Forex rate and challenge in accessing the foreign exchange and the global increase in the crude oil prices, has dampened the positive projections for 2022.
The Chairman explained further that despite various challenges, NAHCO had invested over N4 billion in the acquisition of Ground Support Equipment (GSE) and assured the shareholders that the company would perform better in the 2022 financial year.
He added: “With the pronouncement of the new safety threshold by the Nigerian Civil Aviation Authority (NCAA), which prescribed a minimum price for services, we hope that issue of price war and unhealthy competition would be a thing of the past, as competition will now be based on service and not price.
Management has been mandated not to rest on its oars and ensure the company performs even better in 2022.”