Goods at the airport

Goddy Egene

The Nigerian Aviation Handling Company Plc (NAHCO) has said investors would soon begin to reap the benefits of the huge investments made its operations.
The company has in the last two years spent about $40million on its ultramodern warehouse and fleets of ground support equipment (GSE).

The company with the brand name, nacho aviance has also responded to the heightened security challenge by investing in bomb/explosive detection machines and closed circuit television (CCTV) surveillance system.
However, the impact of the investment did not reflect on its financial result of the company for the half year (H1) ended June 30, 2012. The company posted profit after tax of N280 million in H1 of 2012, down from N484 million in corresponding period of 2011.
But NAHCO said it had mapped out strategies for growing its income base in the next half year after the dip in profit occasioned by operational disruptions in the H1 the current year.

Explaining the H1 result, the company said the first quarter of the year is usually the lowest season in the Aviation industry.“The company lost about 30 days to strikes in its cargo operations due to disagreements between licensed cargo agents and Customs Service as well as with the Federal Airports Authority of Nigeria. Parts of the cargo section, which is the company’s revenue basket, were also shut down early in the year to accommodate the construction of the new warehouse,” NAHCO said.
However, the management of the company is said to be thrilled by the investments in the GSEs and the warehouse which have capacity for cargo regional hub.

“The company is poised to translate them into improved performance and higher returns as the industry moves into high activity season in the second half of the year,” it said.