NAHCO shareholders approve N665m dividend
The shareholders of Nigerian Aviation Handling Company Plc (NAHCo Plc) have approved a total dividend of N665 million for the year ended December 31, 2021.
Shareholders gave their approval at the company’s 41st Annual General Meeting held over the weekend in Lagos.
The dividend amounted to a gross dividend of 41 kobo per share, an increase of 341% from the 12.5 kobo per ordinary share paid to shareholders at the end of fiscal 2020.
Additionally, the company distributed one free share for every five shares held by existing shareholders and assured them that the 2022 dividend could be much higher based on year-to-date performance in 2022.
The group’s 2021 annual report and accounts said revenue of N10.2 billion was an improvement on the N7.1 billion it earned in 2020. compared to the previous year, which was N361,279 million. Profit After Tax (PAT) also increased to N771,615 million, indicating a growth of 155% from N302,131 million for FY2020.
NAHCO’s total equity in the year under review was N7 billion, an increase of 9% from 2020.
Group Chairman Seinde Fadeni assured that the company will continue to be the leading ground handling company in Africa in terms of market share, customer base, revenue and profitability.
Fadeni explained that the Nigerian economy was fragile in 2021, having emerged from recession in the last quarter of 2020, but despite this they were able to record an improvement in debt ratios.
“Our goal in 2021 was responsible and inclusive growth, which allowed us to be a source of stability for our customers during difficult times. Closing out the second year of unprecedented disruption, low interest rates and market volatility, NAHCO Plc achieved revenue of N10.2 billion with an improved capital base, growth in customer deposits , improved liquidity and debt ratios.
He lamented that the current high exchange rate and difficulty in accessing foreign exchange and the global increase in crude oil prices have dampened the positive projections for 2022.
The Chairman further explained that despite various challenges, NAHCO had invested over N4 billion in the acquisition of Ground Support Equipment (GSE) and assured shareholders that the company would achieve better results over the course of the year. fiscal year 2022.
He added that “with the pronouncement of the new safety threshold by the Nigerian Civil Aviation Authority (NCAA), which has prescribed a minimum price for the services, we hope that the issue of price war and unhealthy competition will be a thing of the past, as competition will now be based on service and not price. Management has a mandate not to rest on its laurels and ensure that the business performs even better in 2022.”
Fadeni also assured shareholders that the company will continue to strive to be the leading ground handling company in Africa in terms of market share, customer base, revenue and profitability.
Speaking on the future of NAHCO, Group Managing Director, Mr. Indranil Gupta said that with the addition of a new GSE to the fleet and significant investments in technology, the NAHCO service will be fully different from the past. He further hinted at carefully planned strategic investments that will further inform the company’s future and called on shareholders to continue to support its growth.