Nigerian Aviation Handling Company Plc, (nahco aviance) invested N2 billion on re-fleeting of ground support equipment (GSEs) and inaugurated its warehouse in Enugu, Enugu State in 20156 as part of efforts to deliver improved services to customers.
The Chief Financial Officer of NAHCO, Mr. Bamidele Adelaja, who disclosed this while speaking against the background of the company’s performance in 2015, noted that despite the huge investment, shareholders will receive a dividend of N324.8 million. The dividend, which is N29.5 million higher than N295.31 million paid the previous year, is 20 kobo per share.
“Although the combined effect of these investment activities has impacted on profitability in the short term, forecasts for the future is projected to show a strong positive in earnings and dividend payout,” he said.
He added that the 2015 political transitional programme, the reduction in cargo volumes, the increasing inflationary trend, unfavourable dollar exchange rate for importers, unsteady power supply and security challenges contributed in no small way to the low margin.
According to the results, NAHCO recorded a revenue of N8.5billion, showing an increase of five per cent as against N8.1billion in 2014. Profit before tax grew from N769.5 million to N796.8 million in 2014, while profit after tax stood at N573.8 million, as against N568.6 million in 2014.
The performance showed that the company weathered the unfavourable operating environment to post a result, which analysts described as encouraging.
The company said it would continue to nurture its investment in Nahco Free Trade Zone, which is showing improved signs of business activities and would continually scout for more opportunities in a diversifying economy.
NAHCO is a diversified enterprise with interests in aviation cargo, aircraft handling, passenger facilitation, crew transportation, fueling services and aviation training.
The company currently serves more than 35 airlines at seven airports across Nigeria, with plans to expand operations to other African countries. It handles about 70 per cent of domestic and foreign airlines operating in Nigeria.
NAHCO was privatised in 2005 and subsequently listed on the Nigerian Stock Exchange(NSE) in 2006. The company is now owned by over 75, 000 individual shareholders and five institutional shareholders.