By PETER EGWUATU
SHAREHOLDERS of Nigerian Aviation Handling Company (NAHCO Aviance) Plc have unanimously endorsed the proposed raising of capital of not more than N25 billion and N369.141 million dividend for the financial year ended December 31, 2012.
The endorsement was made at the company’s 32nd Annual General Meeting (AGM) held at the Transcorp Hilton Hotel in Abuja during the weekend. Notable chairmen of shareholders groups who spoke the minds of their members, such Sir. Sunny Nwosu, Oderinde Taiwo, Boniface Okezie, Oludewa Thorpe, Dr. Farouk Umar praised the board, management and staff for the remarkable progress made during the financial year under review despite the harsh operating environment.
Also endorsed at the meeting was the authorisation by the board to diversify into power, free trade zone, Africa Expansion needs, and or any other projects in line with the company’s diversification and strategic objectives.
Addressing the shareholders at the AGM, Chairman of the company, Mallam Suleiman Yahyah, said, 2012 was an exceptional and difficult year for the aviation industry. Our company’s performance reflects 10 months’ full –stream operations, taking into account of the January 2012 fuel subsidy strikes that paralysed economic activities, and aviation movement, which shaved nearly one per cent from our Gross Domestic Product (GDP). The disruptive work- to- rule strike of licensed cargo clearing agents in May and the unfortunate Dana Air crash of June 3, 2012, leading to loss of lives and property also impacted on performance”
He explained that following the crash and intensive regulatory scrutiny to improve safety as well as the tail effects of the financial crisis, four major domestic carriers were grounded in 2012, adding that the remaining airlines in operation had their functional fleets depleted due to new certification requirements of the Nigerian Civil Aviation Authority (NCCA).
Yahaya, noted that in spite of the these challenges, the company was able to marginally improve on its revenue base by 3.5 per cent from N7.142 billion in 2011 to N7.404 billion in 2012. According to him, “ Our Profit After Tax (PAT) of N732 million in 2012 was at variance with the N807 million achieved in 2011.
Our Profit was also a reflection of the full implementation of the new International Financial Reporting Standard, IFRS and the necessary adjustments and impairment that ensued. Also we have proposed a dividend payout f 25 kobo per every 50 kobo share held by our shareholders. Also our cash reserve ratios improved to 14 per cent in 2012 from 11 per cent in 2011.”