Red Star Express’ 35 kobo dividend plan gets shareholders’ nod

Reduces unclaimed dividend by 70%

For reducing the number of shareholders on its unclaimed dividend list and increasing shareholders’ value on investment through dividend payout, shareholders of Red Star Express Plc, at the weekend, commended the company’s board.

The commendations also came for enhancing their returns on investments, even as they approved a dividend of 35 kobo for every 50 kobo share held for the 2015 financial year.

The shareholders, who urged the management to do everything within its powers and ensure that shareholders are rewarded with bonus issue in the current financial year, also urged the incoming Managing Director to work harder for enhanced profitability.

Specifically, the President of the Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, expressed satisfaction with the state of affairs in the bank, while commended the outgoing management for building a financial statement which the incoming management should consolidate on.

He, however, urged the board to do everything within its powers to give bonus to shareholders in the next financial year.

The National President, Standard Shareholders Association of Nigeria, Godwin Anono said: “We thank the management and board for the company’s ability to declare dividend despite the harsh operating environment. The company’s business has become competitive as the industries now have many doing the courier business, both individuals and non-registered companies.

“So, we commend the company for its resilience and the performance. We want the management to remain focus be active as we shall expect higher dividend come next year.

“On debt collection, we want the management to go out and collect the debt owed the company because the debt is rising and we do not want that to affect our balance sheet,” he added.

Addressing shareholders during the company’s yearly general meeting held in Lagos at the weekend, the Chairman of the company, Dr. Mohammed H. Koguna, explained that the company posted a turnover of N6.632 billion, which is almost at par with N6.658 billion achieved in the corresponding period in 2015.

The firms profit before tax reduced from N611 million to N572 million during the year under review while profit after tax stood at N334.4 million, against N383.6 million achieved in 2015.

Koguna noted that in spite of the challenges of decline in oil prices, immense pressure on the Naira, rising inflation, volatility and uncertainty in the foreign exchange market, regular flight cancellations and upsurge in general cost of living, the staff and management worked assiduously to ensure that the company achieved a satisfactory result.