NAHCO Plc turnover up by 44%, pays N665 million dividend to shareholders

Nigerian Aviation Handling Company Plc (NAHCO Plc) held its 41st Annual General Meeting (AGM) in Lagos on July 29, 2022.

At the AGM, which was held both physically as well as virtually, the Board of the company 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.

As a reward for their continued trust and belief in the company, Shareholders were rewarded with a gross dividend of 41 kobo per ordinary share of 50 kobo each, amounting to N665 million. 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 a 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 in the 2020 financial year. NAHCO Plc’s total equity under the year in review was N7 billion, showing an increase of 9% when compared to that of 2020.

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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 an improved capital base, growth in customers deposits, liquidity, and improved gearing ratios.’’

Group Managing Director/Chief Executive Officer, Mr. Indranil Gupta, Group Chairman, Dr. Seinde Fadeni, and Company Secretary, Mallam Bello Abdullahi, during NAHCO plc’s 41st AGM

He lamented that the current high Forex rate and challenge in accessing the foreign exchange and the global increase in the crude oil prices have dampened the positive projections for 2022.

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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.”

Dr. Seinde Fadeni assured Shareholders that the company would continue to strive to be the leading ground handling company in Africa in terms of market share, client 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, NAHCO’s service will look totally different from the past. He further hinted at carefully planned strategic investments which will further brighten the future of the company and appealed to the shareholders to continue to support its growth.

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One of the shareholders also commended the prudence of the board and management of NAHCO in the past year, despite the pandemic crisis.

NAHCO Plc is a Nigerian diversified group with interests in air cargo services, aircraft handling, passenger facilitation, crew transportation, aviation training, airport-free zone, and logistics. The company currently serves several customers across 19 airports within Nigeria and handles the larger market share of domestic, foreign, and cargo airlines. NAHCO was privatized by the Federal Government of Nigeria in 2005 and was listed on the Nigerian Stock Exchange in 2006. It is one of the fastest growing stocks in 2022 at NGX, with a gain of over 175%, having started the year at N3.73 and at some point, trading at N7.79.

Wole Shadare