NAHCO records five per cent rise in turnover, recommends N324.8m dividend

Amid harsh operating environment, the Nigerian Aviation Handling Company Plc (NAHCO) has recorded a 5 percent increase in turnover in its 2015 financial year.

According to a report released to the NSE, which forms the basis of its yearly general meeting, showed that NAHCO maintained a consistent growth in its turnover earnings and dividends.

The company achieved a marginal improvement in its performance from N8.1bn in 2014 to N8.5 billion in 2015, the chairman Suleiman Yahyah said in the yearly report that is due to be presented to Shareholders on Tuesday.

The company, according to the report, grew its Profit Before Tax (PBT) from N769.5M in 2014 to N796.8M in 2015.

The Board of the company has lowered the cost of doing business and shifted its funding structure from debt to equity, while   approving the repayment of the N2 billion Series 1 Bond from its Bond Cash Reserve Account which is due by the third quarter of 2016.

“These two steps will free up cash for future distribution to shareholders as enhanced dividend and to increase our cash buffer,” the chairman said in his statement due to be presented to shareholders.

Meanwhile, the Board has recommended to the shareholders a dividend of N324.8 million at 20Kobo per ordinary share of 50kobo less withholding tax for the financial year-end December 31st 2015.

The Report shows that the company is investing in the NAHCO Agric Zone Project in 2016.

The company has also appointed Mr. Bamidele Adelaja as the Chief Financial Officer (CFO).