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Red Star Express posts N221m PBT amid boom in courier business

…appoints non-executive directors

Red Star Express Plc, one of Nigeria’s leading courier and package delivery companies, has declared a profit before tax of N221 million for the year ended March 31, 2021.

According to the report of the financial year ended March 31, 2021, the company’s total assets and shareholders’ funds increased to N7.5 billion from N7.3 billion recorded in the previous year, representing a 2.9 percent growth.

Peter Olusola Obabori, group managing director of Red Star Express, said at the 28th annual general meeting of the company in Lagos that the company is currently undertaking a business process reengineering in order to increase productivity, better cost management among other benefits.

“The strengthening of our core business with capacity for revenue generation and higher profitability remains our short-medium term strategy in the face of the rising cost of operation and continuous devaluation of the naira,” he said.

Obabori further assures the company’s commitment to ethical business dealings and the adoption of eco-friendly initiatives that stimulate investment and growth.

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A licensee of FedEx Nigeria, which is listed on the floor of the Nigerian Exchange Group (NGX), Red Star Express also declared a dividend of 15kobo per share translating to 5 kobo cash payment and 10 kobo bonus in the proportion of 1 new share for every 33 shares previously held as at close of business on September 3, 2021.

The company also announced the appointment of Peter Aletor and Chukwuemeka Ndu as non-executive directors as part of its determination to further prepare against the challenging economic environment.

Suleiman Barau, chairman of Red Star Express, said the effects of the Covid-19 outbreak impacted the transportation, aviation, tourism, international trade and general business activities in Nigeria and the world at large.

Barau said the company remains committed to the creation of shareholder wealth notwithstanding the prevailing economic circumstance, having built a longstanding culture of staying true to the promise of rewarding investors consistently.

“Our top priority remains the health and safety of our employees, customers and the communities we serve by providing resources for health and safety in all our facilities across the country,” Barau said.

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 fully 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.

While all resolutions placed before shareholders were approved, the general meeting approved the company consolidated financial statements for the financial year ended March 31, 2020, as well as the payment of N139 million dividends to its shareholders.

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