The Board of Directors of Nigerian Aviation Handling Company Plc (NAHCO Aviance) on Thursday notified the Nigerian Stock Exchange (NSE) that it has recalled Adetokunbo Fagbemi, the Group Managing Director and Chief Executive Officer.
The company said in a statement to the NSE signed by Bello Abdullahi, Dikko & Mahmoud Solicitors, its company secretary that the GMD/CEO was suspended by the Board at its meeting held on January 27, 2021.
Why the suspension
“The suspension was due to the Management’s failure to diligently secure the delivery of a purchased equipment from the vendor within the contracted period and Management’s inability to provide satisfactory/acceptable reason for the unreasonable long delay,” it said.
The statement also said that “the suspension was in line with the Board’s earlier decision that if a certified bill of laden for the equipment was not received by February 2, 2021, the GMD/CEO shall proceed on suspension with half pay until receipt of acceptable evidence of equipment shipment from the manufacturer. The suspension commenced from February 3, 2021, and the Group Executive Director –Corporate Services. Olumuyiwa .A. Olumekun acted as the Group Managing Director/CEO.”
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Board receives evidence of departure and arrival dates of the equipment from the manufacturer
“The Board is however pleased to inform the investing public and the Exchange that on, Tuesday, February 24, 2021, a satisfactory evidence of departure and arrival dates of the equipment has been received by the Board from the equipment manufacturer”, it further noted. Consequently, the Board at its emergency meeting held on February 24, 2021, recalled the Group Managing Director/Chief Executive Officer, Adetokunbo A. Fagbemi from the suspension and she has resumed work.
Full-year 2020 scorecard shows decline across top-to-bottom line figures
Nigerian Aviation Handling Company Plc’s unaudited financial statements for the period ended December 31, 2020, shows it group revenue dropped to N7.330billion from N9.996billion in 2019. Also, gross profit decreased to N2.285billion in 2020 from N3.432billion in 2019. Profit Before Tax (PBT) of N428.593million in 2020 is far below PBT of N1.340billion the company reported in 2019, while its Profit After Tax (PAT) of N171.313million in 2020 is far below PAT of N717.199million in 2019. Basic earnings per share printed pretty lower at 10kobo in 2020 against 44kobo in 2019. NAHCO Plc with a free float percentage of 56.36percent as at December 31, 2020, is compliant with The Exchange’s free float requirements for companies listed on the Main Board.
Share price down 3.5% year-to-date
The share price as of December 31, 2020, was N2.30kobo. The N2.22kobo it closed on Thursday, February 25 implies a decrease of 3.5percent year-to-date (YtD).
