The shareholders of Nigerian Aviation Handling Company Plc (NAHCo Plc), have approved a total dividend of N665 million for the year ended December 31, 2021.
The shareholders gave their approval at the Company 41st Annual General Meeting held at the weekend in Lagos.
The dividend amounted to a gross dividend of 41 kobo per share, an increase of 341 per cent over the 12.5 kobo per ordinary share paid to shareholders at the end of the 2020 financial year.
Also, the company gave out one bonus share for every five shares held by the existing shareholders and assured them that the 2022 dividend may be way higher based on Year-to-date performance in 2022.
The 2021 annual report and accounts of the group indicated that the N10.2 billion revenue was an improvement from the N7.1 billion it earned in 2020. The NAHCO Group earned N924,855 million Profit Before Tax (PBT) in 2021, showing 156 per cent increase from the previous year, which was N361,279 million. Profit after tax (PAT) also increased to N771,615 million, indicating 155 per cent growth, compared to N302,131 million of 2020 financial year.
NAHCO total equity under the year in review was N7 billion, showing an increase of nine per cent when compared to that of 2020.
The chairman of the Group, Seinde Fadeni, assured that the company would continue to be the leading ground handling company in Africa in terms of market share, client base, revenue, and profitability.
Fadeni explained that the Nigerian economy was fragile in 2021, after exiting recession in the last quarter of 2020 but despite this, they were able to record improved gearing ratios.
“Our focus in 2021 was a responsible and inclusive growth, which allowed us to be a source of stability for our customers during the challenging times. Closing the second year of unprecedented disruption, low interest rates and market volatility, NAHCO Plc earned N10.2 billion in revenue with improved capital base, growth in customers deposits, liquidity, and improved gearing ratios.’’
He lamented that the current high Forex rate and challenge in accessing the foreign exchange and the global increase in the crude oil prices, has dampened the positive projections for 2022.
The chairman explained further that despite various challenges, NAHCO had invested over N4 billion in the acquisition of Ground Support Equipment (GSE) and assured the shareholders that the company would perform better in the 2022 financial year.
He added that, “with the pronouncement of the new safety threshold by the Nigerian Civil Aviation Authority (NCAA), which prescribed a minimum price for services, we hope that issue of price war and unhealthy competition would be a thing of the past, as competition will now be based on service and not price. Management has been mandated not to rest on its oars and ensure the company performs even better in 2022.”
Fadeni also assured shareholders that the company would continue to strive to be the leading ground handling company in Africa in terms of market share, client base, revenue, and profitability.
Speaking on the future of NAHCO, the Group managing director, Mr. Indranil Gupta, said that with the addition of new GSE to the fleet and the significant investments in Technology, NAHCO service will look totally different from the past. He further hinted at carefully planned strategic investments which will further brighten the future of the company and appealed to the shareholders to continue to support its growth.
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