Red Star Express Plc, a world-leading courier and package delivery company in Nigeria, has declared a profit before tax of N750 million for the year ended March 31 2020.
The company a licensee of FedEx in Nigeria which shares are listed on the floor of the Nigerian Stock Exchange (NSE), in the review financial year also declared a dividend of 35kobo for every 50 kobo share to shareholders.
It would appear that Red Star express is prepared for the current economic situation as the Board of Directors have taken a proactive decision to shore-up its revenue reserves. In the financial year ended March 31, 2020, the company recorded revenue of N10.5billion which is a 5 percent increase over the preceding year.
Sulieman Barau, chairman of the company while addressing stakeholders at the 27th annual general meeting of the company in Lagos said the profit before tax of N750 million was 0.5 percent higher than the preceding year.
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Barau said the increase in revenue was made possible as a result of some growth platforms which were established and are being nurtured, which include the West African branch expansion and the new special business units which were championed by the Management of the company to take advantage of some emerging opportunities.
“We hope to explore this further in the new financial year to minimise the disruptions brought about by the COVID-19 impact,” Barau said. He further said that the performance reflected the company’s commitment to the creation of shareholder wealth notwithstanding the prevailing economic circumstances, having built a longstanding culture of staying true to its promise of rewarding investors.
While all resolutions placed before shareholders were approved, the General Meeting approved company consolidated financial statements for the financial year ended 3lst March 2020 as well as the payment of N324 million dividends to its shareholders. He assured shareholders of the plan to continuously deliver a strong and sustainable performance that enhances maximum returns to shareholders.
“As we march forward in the year with confidence and optimism, knowing full well that our businesses have been repositioned to take advantage of key opportunities as we stay on course in the execution of our growth strategy,” Barau said.
Peter Olusola Obabori, group managing director/ CEO stated that despite the global and domestic economic challenges occasioned by the Coronavirus pandemic during the financial year that affected revenue trajectory, the company
