NAHCO posts N10.2b revenue, yields N665m as dividend

Ground handling firm, Nigerian Aviation Handling Company (NAHCO) Plc, has recorded a significant recovery from the COVID-19 pandemic, posting a turnover of N10.2 billion and dividend of N665 million.

The high turnover represents a 44 per cent improvement compared to the 2020 financial year performance. As a reward for their loyalty, shareholders were at the 41st yearly General Meeting (AGM) in Lagos, recently, rewarded with a gross dividend of 41 kobo per ordinary share of 50 kobo each, amounting to N665 million. This is an increase of 341 per cent over the N12.5 kobo per ordinary share paid to shareholders at the end of the 2020 financial year.

The company also gave out one bonus share for every five shares held by the existing shareholders and assured the shareholders that the 2022 dividend may be way higher based on Year-to-date performance in 2022.

The 2021 yearly 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 N924.85 million Profit Before Tax (PBT) in 2021, showing 156 per cent increase from the previous year, which was N361.27 million. Profit after tax (PAT) also increased to N771.61 million, indicating 155 per cent growth, compared to N302.13 million for the 2020 financial year.

Chairman of the Group, Dr. Seinde Fadeni, assured at the meeting 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, “our focus in 2021 was responsible and inclusive growth, which allowed us to be a source of stability for our customers during the challenging times.”

Fadeni lamented that the current high forex rate and challenge in accessing the foreign exchange and the global increase in the crude oil prices, 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 said: “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 the 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.”

Group Managing Director, Indranil Gupta, noted that with the addition of new GSE to the fleet and the significant investments in technology, NAHCO service would look totally different from the past.

Gupta further hinted at carefully planned strategic investments that would further brighten the future of the company and appealed to the shareholders to continue to support its growth.

One of the shareholders also commended the prudence of the board and management of NAHCO in the past year, despite the pandemic crisis.