declares 40 kobo dividend
RED Star Express Plc has disclosed plan to restructure to a Holding Company from the current Group structure, even as it declared N236 million gross dividend for the year ended March 31, 2017.
The dividend translates to 40 kobo per ordinary share of every 50 kobo each.
Addressing the shareholders at the company 24th Annual General Meeting, AGM, in Lagos, the chairman, Dr. Mohammed Koguna, said the restructuring would allow the company to take full advantage of emerging business opportunities in the logistics sector.
He said the restructuring has become necessary in view of the various initiatives the company is seeking to explore and the need to have a more structured accounting system.
Reviewing the company’s financial performance for the period, he said lower oil revenue, tight capital controls, increased inflationary pressures and exchange rate volatility combined to make 2016 a challenging year, but expressed satisfaction at the level of profitability posted by the company during the year inspite of challenges.
“We will continue to be innovative so as to ensure the steady growth of the company which would bring about sustained progression in terms of returns on investments. Our watchword in the management of both our human and capital resources will be to focus on cost efficiency, and concentrate on opening new horizons that will ensure we remain the market leader in our industry,” he said.
The company posted a turnover of N7.3 billion for the year, a 10 percent growth compared to the previous year. The profit before tax increased to N653million from N572 million, while profit after tax rose to N426.8 million from N334.4 million in the previous year.
He noted that the management took a critical look at its business in the course of the year with a view to repositioning the company as a leader in the logistics industry and to optimize emerging business opportunities in the domestic and international business environment.