NAHCO Board of Directors Recommends N324m Dividend

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By Goddy Egene

The Board of Directors of Nigerian Aviation Handling Company (NAHCO) Plc has recommended a dividend of N324.8 million to the shareholders for the year ended December 31, 2015. The dividend, which translates to 20 kobo per share, will be approved by the shareholders at their forth coming annual general meeting (AGM) scheduled to hold in Abuja, on July 26, 2016.

In his report contained in the annual report released ahead of the AGM, Chairman of NAHCO, Alhaji Suleiman Yahyah said in spite of the difficult operating environment, the company   recorded a five per cent increase in turnover in its 2015 financial year.

The company achieved a marginal improvement in its performance from N8.1 billion in 2014 to N8.5 billion in turnover in 2015.

 “Despite the global challenges and Nigeria’s political economy, the company grew its Profit Before Tax (PBT) from N769.5 million  in 2014 to N796.8 million in 2015. The Board of the company has lowered the cost of doing business and shifted its funding structure from debt to equity, while   approving the repayment of the N2 billion Series 1 Bond from its Bond Cash Reserve  Account which is due by the third quarter of 2016. These two steps will free up cash for future distribution to shareholders as enhanced dividend and to increase our cash buffer,” the chairman said in his statement due to be presented to shareholders,” Yahyah said.

 He disclosed that the company is investing in the NAHCO Agric Zone Project in 2016, adding that the company has appointed Mr. Bamidele Adelaja as the Chief Financial Officer (CFO).

As part of consolidation of its leadership position in the ground handling services industry, the company recent signed a string of new international and local businesses.

They include international air operators, Meridiana Fly (Italian Airline), Mid – African Airlines (new Gambia Flag Carrier) which are making entries into Nigeria for the first time and  Rwandair which had just concluded plans to fly the Abuja – Kigali route.

Also concluded is the deal with Mainstream Aviation; a major Cargo Air-Freight (Logistics) Airline operating both international and local flights.

NAHCO  also signed deals to provide ground handling service for Air Peace in Akure, Ondo State, and for fast rising local operator, Azman Air in Maiduguri and Yola.

Speaking on the development, the Chief Commercial Officer (CCO) of the company, Mr. Seyi Adewale said: “It is during difficult business periods or cycles that the ‘wheat is separated from the chaff’. At this stage, it’s very clear that NAHCO is an excellent and efficient brand that has endured 36 years of aviation (ground) handling efficiency and qualitative standards. Our high-end ground support equipment is well maintained and upgraded.  We have a strong and motivated workforce, and we are sticklers for continuous business development and innovation. Our professional and operating ethics sets us far above other Terminal operators and this is further proven by our growing local and international airline partners. We would continue with our driving force and slogan to deliver service beyond expectation.”

According to Adewale, the new businesses are a testimony of the excellent service delivery which NAHCO is known for globally, pointing out that more and more operators are realising that they deserve value for money and are turning to a service provider that can ensure that.