Nigerian Aviation Handling Company (NAHCO) Plc, a ground handling company, has had a substantial comeback from the COVID-19 pandemic, posting a N10.2 billion in revenue and an N665 million dividend.
The high turnover marks a 44% improvement over the results for the 2020 fiscal year. The 41st annual general meeting (AGM) in Lagos recently awarded shareholders with a gross dividend of 41 kobo each ordinary share worth 50 kobo each, or N665 million, as compensation for their devotion. The N12.5 kobo per ordinary share given to shareholders at the end of the 2020 fiscal year has increased by 341% to this amount.
In addition, the business awarded one bonus share for every five shares owned by current shareholders and informed them that the dividend for 2022 might be significantly greater depending on the year’s performance.
The group’s annual report and financial statements for 2021 showed that the N10.2 billion in sales represented an increase from the N7.1 billion it brought in in 2020. The NAHCO Group’s Profit Before Tax (PBT) for 2021 was N924.85 million, a 156% increase over the N361.27 million it made the year before. In addition, profit after tax (PAT) climbed from N302.13 million for the 2020 fiscal year to N771.61 million, or a growth of 155%.
In terms of market share, clientele, revenue, and profitability, the company would continue to be the top ground handling provider in Africa, according to the Group’s Chairman, Dr. Seinde Fadeni.
After emerging from recession in the final quarter of 2020, Fadeni said that the Nigerian economy was fragile in 2021. Nevertheless, “our priority in 2021 was responsible and inclusive growth, which allowed us to be a source of stability for our consumers during the hard times,” she said.
Fadeni bemoaned that the optimistic expectations for 2022 had been dimmed by the current high foreign exchange rate, the difficulty in acquiring foreign exchange, and the increase in crude oil prices around the world.
Further explaining that NAHCO had invested over N4 billion in the purchase of Ground Support Equipment (GSE), the Chairman reassured the shareholders that the company would perform better in the 2022 fiscal year despite numerous obstacles.
He said: “We hope that the problem of price war and unhealthy competition would be a thing of the past with the pronouncement of the new safety threshold by the Nigerian Civil Aviation Authority (NCAA), which prescribed a minimum price for services. Competition will now be based on service and not price. The management team has been ordered to keep working hard and make sure the business performs even better in 2022.
Indranil Gupta, Group Managing Director, stated that NAHCO service would be completely different from what it had been in the past with the addition of new GSE to the fleet and the large investments in technology.
Gupta also made an appeal to the shareholders to continue to support the company’s expansion while making further allusions to properly thought-out strategic investments that would further brighten the company’s future.
A shareholder also praised NAHCO’s board and management for their caution during the previous year in the face of the pandemic catastrophe.