NAHCO declares 20 kobo dividend, bonus of 1 for 10

The Nigerian Aviation Handling Company Plc (NAHCO Aviance plc) has declared a cash dividend of 20 kobo and a bonus of one new share for every 10 shares already held for the 2014 financial year. The company released its 2014 results last Friday at the Nigerian Stock Exchange (NSE). Shareholders of the company are getting this double return on investment even as the company is set to benefit from its free trade zone subsidiary, NAHCO FTZ, which commenced operations last quarter of 2014 and is expected to be- gin to reap profits soon after significant investments in its development the past two years.

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. Norbert Biedermann, managing director, Nigerian Aviation Handling Company plc noted 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 2 percent in a very difficult year.” He also expressed optimism that the Nahco Group “is on course to deliver its strategic medium term growth and profit- ability objectives for 2015 and beyond as activities have since stabilised 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.” He confirmed that while investments in the FTZ will continue apace in 2015/2016 we will begin to reap the fruits of such in- vestments within this year in a sustainable manner.

Nahco’s bonus declaration plus a cash dividend is the first double corporate action by a listed company this year on the floor and reflects company’s strategy for continued cash retention as development and diversification is deepened in tight market conditions. Suleiman Yahyah Nahco’s group chairman, 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 pipe- line 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 – The FTZ is projected to attract over $500m in new investments in next five years. “NAHCO FTZ will afford us the opportunity to import goods in a border- less environment. It will also improve Nigeria’s trade facilitation and competitive and give us a unique plat- form to service our value- added aviation-clients and related business.

“The platform will enhance significantly air traffic into the country and make NAHCO plc a diversified business with highly increased cargo volumes, supporting light packaging industry, light retailing activities within the airport infrastructure. “We also plan that when the FTZ comes into full operation in 2016 some of the exports business that we lose to our neighbouring counties would revert to us, thus creating jobs and economic multipliers for Nigeria, Yahyah said. Many shareholders of the company had expressed excitement and support over the new subsidiary, the first FTZ platform for Cargo Hubbing in Lagos airport modelled like the Dubai, Singapore and Shannon airport Free trade zones.