• Tuesday, December 05, 2023
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NAHCO proposes 25k dividend per share amid N7.4bn revenue


The Nigerian Aviation Handing Company (nahco aviance) is proposing a dividend payout of 25kobo for every 50kobo share held by its shareholders in its 2012 financial year result.

The dividend, contained in the company’s performance released to the Nigerian Stock Exchange ,reflects a dividend yield of 4.6 per cent which compares favourably and is above market average for publicly listed companies which released their results recently under the new International Finance Reporting Standard (IFRS) framework.

The company, despite unfavorable operating environment, also raised its revenue base to N7.4billion, up from N7.1billion in 2011, reflecting a 4.2 per cent increase.

A statement from the company said its growth prospect and forecast envisaged doubling of its earnings per share and dividend payout within the next two years; as it expects increased earnings from its cargo business and expansion initiatives.

The statement from nahco aviance’s Chief Finance Officer, Chinwe Chiji-Nnorom, said the period under review was a difficult year occasioned by fuel subsidy strike in January 2012 and other strikes specific to its operations, reduction in the number of flights as well as security challenges in some of its locations. This accounted for the dip in the Group’s Profit Before Tax from N1.2b in 2011 to N736m in 2012.

Despite the challenges, the company’s expansion drive, enhanced cargo operations, increased investment in ground handling assets, interest in the power sector and the plan to make Lagos a hub for a Free Trade Zone are expected to pay off in 2013 and succeeding years.

nahco aviance has invested about N3.9 billion in an ultramodern warehouse which was commissioned in May 2012 as well as in refleeting its ground support equipment. About N1b of this amount was invested in 2012. The Lagos warehouse is the largest warehouse facility in the West-African sub-region, and is capable of conferring regional cargo hub status on Nigeria.

The company has also embarked on renovation of the Kano warehouse as part of its support for the Federal Government’s airport modernisation and expansion programme. In addition, the company instituted an IATA-approved Learning and Development Centre to enhance better training for staff and ensure collaboration with international training bodies.

Although the combined effect of these investment activities has impacted on profitability in the short term, based on forecasts for the future it is projected to show a positive impact on earnings and dividend payout in the next two years.