Nigeria: Nahco Maintains Steady Growth

In spite of the difficult operating environment, the Nigerian Aviation Handling Company Plc (NAHCO) has recorded a 5 percent turnover in its 2015 financial year.

The Annual Report shows that despite the difficult business terrain and the contraction in the economy from 6.5 per cent in 2014 to around 2.5 per cent in 2015, NAHCO was able to maintain a consistent growth in its turnover earnings and dividends.

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

Despite the global challenges and Nigeria’s political economy, 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 N2bn 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 N324.8M 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).

Source: Daily Trust.