NAHCO Rewards Shareholders with 20k Dividend, Bonus Shares

Nigerian Aviation Handling Company Plc (NAHCO Aviance Plc) has rewarded its shareholders following the declaration of a cash dividend of 20 kobo and a bonus of one new share for every 10 shares already held for the 2014 financial year.

In addition to these rewards, the company is set to benefit from its free trade zone subsidiary, NAHCO FTZ, which commenced operations last quarter of 2014 and is expected to begin to reap profits soon after significant investments in its development in the past two years.

NAHCO’s key perfomance indicators for the financial year ended 2014 showed a marginal increase in revenues of N8.13 billion, and profit after tax(PAT) of N568 million, compared with N8.09 billion and N817 million in 2013 respectively.

The company’s bottom line was affected by the three months Ebola virus scare which reduced the movement of passengers and cargo flights across West African airports by major international carriers, NAHCO’s core customers.

Also, the company’s ratios withered the general high cost of operations, the slowdown in the economy major macroeconomic volatility preceding the 2015 elections.

The 2014 group results released and approved by the NSE this Friday was most impacted by pre-operating expenses and sunk cost made in its free trade zone subsidiary, reducing its overall profitability and performance relative to 2013 results.

However, Mr Norbert Biedermann, managing director of the NAHCO, noted in a statement that inspite of the unplanned difficulties and the several health and safety flight cancellations and limitations in travels and travel warning, coupled with the warehouse closure, it achieved marginal growth of 2 per cent in a very difficult year.

He confirmed that while investments in the FTZ would continue in 2015/2016, the company would begin to reap the fruits of such investments within the year in a sustainable manner.

NAHCOs bonus declaration plus a cash dividend is the first double corporate action by a listed company this year on the floor and reflects company’s continuing strategy for cash retention as development and diversification is deepened in tight market conditions.

NAHCO’s Group chairman, Suleiman Yahyah had told shareholders in Abuja last May , that a 25-year master plan was being developed for implementation by NAHCO FTZ which will triple its cargo handling capacity in the short term and create a long term pipeline for both its expansion of revenues and consolidate its diversification strategy while supporting Nigeria’s exports earnings and trans-shipments capabilities   across the west Africa sub region- The FTZ is projected to attract over $500million in new investments in next 5 years.

“NAHCO FTZ will afford us the opportunity to import goods in a borderless environment. It will also improve Nigeria’s trade facilitation and competitiveness and give us a unique platform to service our value-added aviation-clients and related business.

“The platform will enhance air traffic into the country and make NAHCO Plc a diversified business with highly increased cargo volumes, supporting light packaging industry, and light retailing activities within the airport infrastructure. We also plan that when the FTZ comes into full operation in 2016, some of the exports business that we lose to our neighboring counties would revert to us, thus creating jobs and economic multipliers for Nigeria,” Yahyah said.

Most shareholders of the company had expressed excitement and support over the new subsidiary, the first FTZ platform for Cargo Hubbing in Lagos airport modelled like the Dubai, Singapore and Shannon airport free trade zones.