ABUJA: Shareholders of Nigerian Aviation Handling Company Plc (NAHCO aviance plc) have cause to smile following the declaration of a cash dividend of 20 kobo and a bonus of one new share for every 10 for the year ended December 31, 2014.
This is coming even as the company is set to benefit from its free trade zone subsidiary,NAHCO FTZ,which commenced operations last quarter of 2014. NAHCO ended 2014 with a marginal increase in revenues of N8.133 billion, and profit after tax of N568 million, compared with N8.09 billion and N817 million in 2013 respectively.
According to the company, its bottom line was affected by the three months Ebola virus scare which reduced the movement of passengers and cargo flights across West African airports by major international carriers, Nahco’s core customers. Also, the company’s ratios withered the general high cost of operations, the slowdown in the economy major macro -economic volatility proceeding the 2015 elections.
The results were most impacted by pre-operating expenses and sunk cost made in NAHCO FTZ, reducing its overall profitability and performance compared to 2013.
The Managing Director of the NAHCO, Mr Norbert Biedermann, said in a statement that in spite of the unplanned difficulties and the several health and safety flight cancellations and limitations in travels and travel warning coupled with the warehouse closure, “we achieved marginal growth of per cent in a very difficult year, and expressed optimism that the Nahco Group is on course to deliver its strategic medium term growth and profitability objectives for 2015 and beyond as activities have since stabilized and we see improvements income streams from subsidiaries and efficiency improvements in the core business and new routings demand for the second quarter that will gradually add up to group performance.”
NAHCO’s bonus declaration plus a cash dividend is the first double corporate action by a listed company and reflects company’s continuing strategy for cash retention as development and diversification is deepened in tight market conditions.
Speaking on the results, Group Chairman of NAHCO, Suleiman Yahyah had told shareholders in Abuja last May , that a 25-year master plan was being developed for implementation by NAHCO FTZ which will triple its cargo handling capacity in the short term and create a long term pipeline for both its expansion of revenues and consolidate its diversification strategy while supporting Nigeria’s exports earnings and trans-shipments capabilities across the west Africa sub region.
