NAHCO harvests N1 billion profit, declares 40 kobo dividend
By Chris Ochayi
The Nigerian Aviation Holding Company, NAHCO PLC, recorded a turnover of N6.3 billion, in 2010 representing a 5 per cent increase over the previous year’s figure of N6.06 billion. Disclosing this in Abuja during its 30th Annual General Meeting, AGM, the Chairman, Board of Directors of the company, Major-General Ike Nwachukwu, Rtd, said the operating profits dropped by 13% from the N1.9 billion in the previous year to N1.7 billion, while profit-after- tax also dropped by 8% to N800 million from the N869 million in the previous year.
Maj. Gen. Nwachukwu further explained that, “total assets employed by the company, however, grew by 7% from 6.7% billion to N7.2 billion, while net assets increased from N4.6 billion to N5 billion.” On the dividends, the former Minister of External Affairs, said, “earnings per share dropped by 5% to 96 kobo from 101 kobo in the previous year. In spite of the reduction in profits largely due to increase in operational costs and impact of international flight cancellations as a result of the volcanic cloud, the company paid an interim dividends of 25 kobo and has proposed a final dividend of 40 kobo making a total of 65 kobo.
Nwachukwu, however, noted that the profit margin slightly declined in 2010 as against the N3.15 billion in 2009 with profit-after-tax of N1.28 billion in 2009.
He said: “I am happy to confirm that in spite of the tough economic environment and challenges associated with the year 2010, your company remained profitable and maintained stability in its performance ratio. Within this context, I am pleased to confirm that the board of directors is proposing a final dividend of 40 kobo, following an interim dividend of 25 kobo already paid to shareholders,” he said.
According to him, the operating result for the year 2010 improved in turnover, rising from N6.07 billion in 2009 to N6.39 billion in 2010. On the future outlook, he expressed optimism that from the transformation and repositioning programme which the management embarked on, there would be improved returns on investments with higher levels of service in years to come.
The chairman observed that one of the major achievements of NAHCO in 2010 was the improvements in safety record saying that unlike the previous years, there was no record of air disaster. He added, “let me also acknowledge the increased security systems at the airports, especially the installation of full body scanners and explosive-detecting equipment, which has improved confidence in both the local and international traveling community.”
