Despite the negative impacts of Covid-19 pandemic on the aviation and global economy in 2020, and part of 2021, Nigerian Aviation Handling Company (NAHCO) Plc increased its group turnover to N10.2 billion, representing a 44 per cent improvement over the performance of 2020 financial year.
This was disclosed at its 41st Annual General Meeting (AGM) held in Lagos on July 29, 2022.
This year’s edition of the AGM was held both physically and virtually.
The board of company has however approved a sum of N665 million to be paid as dividends; translating to a gross dividend of 41 kobo per ordinary share of 50 kobo each.
This was an increase of 341 per cent over the N12.5 kobo per ordinary share paid to shareholders at the end of the 2020 financial year.
The company also gave out one bonus share for every five shares held by the existing shareholders while it assured shareholders that the 2022 dividend may be higher based on Year-to-date performance in 2022.
The 2021 annual report and accounts of the group indicated that the N10.2 billion revenue was an improvement from the N7.1 billion it earned in 2020.
The NAHCO Group earned N924,855 million Profit Before Tax (PBT) in 2021, showing 156% increase from the previous year, which was N361,279 million. Profit after tax (PAT) also increased to N771,615 million, indicating 155% growth, compared to N302,131 million of 2020 financial year.
NAHCO Plc total equity under the year in review was N7 billion, showing an increase of 9 percent when compared to that of previous financial year.
Speaking at the meeting, Chairman of NAHCO Group, Dr. Seinde Fadeni, assured that the company would continue to be the leading ground handling company in Africa in terms of market share, client base, revenue, and profitability.
Fadeni explained that the Nigerian economy was fragile in 2021, after exiting recession in the last quarter of 2020 but despite this “Our focus in 2021 was a responsible and inclusive growth, which allowed us to be a source of stability for our customers during the challenging times.
Closing the second year of unprecedented disruption, low interest rates and market volatility, NAHCO Plc earned N10.2 billion in revenue with improved capital base, growth in customers deposits, liquidity, and improved gearing ratios.’’
He lamented that the current high Forex rate and challenge in accessing the foreign exchange and the global increase in the crude oil prices, has dampened the positive projections for 2022.
The Group Chairman explained further that despite various challenges, NAHCO had invested over N4 billion in the acquisition of Ground Support Equipment (GSE) and assured the shareholders that the company would perform better in the 2022 financial year.
He added: “With the pronouncement of the new safety threshold by the Nigerian Civil Aviation Authority (NCAA), which prescribed a minimum price for services, we hope that issue of price war and unhealthy competition would be a thing of the past, as competition will now be based on service and not price. Management has been mandated not to rest on its oars and ensure the company performs even better in 2022.”
Also commenting on the future of the ground Handling company, M NAHCO Group Managing Director, Mr. Indranil Gupta said that with the addition of new GSE to the fleet and the significant investments in Technology, NAHCO service will look totally different from the past.
Gupta who hinted on the carefully planned strategic investments which will further brighten the future of the company, appealed shareholders to continue to support the company’s growth.
One of the shareholders also commended the prudence of the board and management of NAHCO in the past year, despite the pandemic crisis.
NAHCO Plc is a Nigerian diversified group with interests in air cargo services, aircraft handling, passenger facilitation, crew transportation and aviation training, airport free zone and logistics. The company currently serves several customers across 19 airports within Nigeria, and handles the larger market share of domestic, foreign and cargo airlines. NAHCO was privatized by the Federal Government of Nigeria in 2005 and was listed on the Nigerian Stock Exchange in 2006. It is one of the fastest growing stocks in 2022 at NGX, with a gain of over 175%, having started the year at N3.73 and at some point, trading at N7.79.
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