NAHCO to Pay N406m Dividend as Firm Records Improved Results

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MARKET NEWS

By Goddy Egene

The Board of Directors of Nigerian Aviation Handling Company Plc (NAHCo) has recommended a dividend of N406 million for the year end December 31, 2017. The dividend, which translates to 25 kobo per share, is expected to be approved by shareholders at the forthcoming Annual General Meeting (AGM).

NAHCo, which provides aircraft, passenger and cargo handling services and other related services surmounted challenges in 2017 to end the year with higher profit after tax (PAT).  The company recorded a turnover of N7.926 billion in 2017, compared with N7.956 billion in 2016. Finance cost was reduced from N545 million in 2016 to N213 million in 2017, while PAT  rose from N581 million in 2016 to N776 million in 2017, showing an increase  of 34 per cent.  Earnings per share improved from 36 kobo to 48 kobo. Hence, the board of directors recommended a dividend payment of 25 kobo, which is higher than the 22 kobo paid the previous year.

In the same vein, NAHCo has started   2018 on a very bright note, recording significant growth in PAT for the first quarter (Q1) ended March 31, 2018. The   reported a turnover of N2.188 billion in Q1 of 2018, up from N1.786 billion in the corresponding period of 2017.

Finance income improved from N30.916 million to N64.495 million, while the company was able to reduce finance cost to N44.536 million, from N55.715 million in 2017.

Profit Before Tax jumped to N117.405 million in 2018, compared with N1.026 in 2017, while PAT followed similarly trend to hit N97.566 million, compared with N1.026 million  in 2017.

The Q1 results are the first set of results produced by the Managing Director/CEO, Mr. Idris Yakubu, who was appointed in November 2017.

Stock market operators said with the Q1 performance,  Yakubu, a former banker, who   has an extensive experience in delivering agreed strategic business imperatives, is bringing his experience to bear in the company to the delight of all stakeholders.

Shareholders of NAHCo had last year commended the board and management for the improved results despite the challenging operating environment.  They  pledged their support for better future results and urged the board and management to sustain the performance.

Chairman of NAHCo,  Usman  Bello had informed the shareholders that   in spite of the recession and the global weakness in the aviation sector, the company’s performance was commendable.

Speaking on the diversification programme, Bello noted that NAHCoFree Trade Zone (NFZ) that was approved by shareholders in 2011 as a subsidiary of the company had achieved some milestones.