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NAHCo’s AGM presents 1 for 8 bonus for shareholders’ endorsement
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Shareholders of the Nigerian Aviation Handling Company plc (NAHCo), the nation’s foremost ground handling company will today converge in Enugu, for the 2007 annual general meeting (AGM). At the meeting, which is the first after the Company’s successful re-capitalisation in 2007, shareholders will be expected to approve Board resolutions on the payment 30k dividend for every 50k share held and a bonus issue of one for every 8 units of shares that a shareholder currently holds.
According to the results which was its second year of operations after its privatisation, NAHCo’s turnover grew from N3.245 billion to N3.681 billion, reflecting a 13 percent increase over 2006 figures.
Similarly, profit before tax (PBT) rose by 41.38 percent from N555.9 million to N786 million. Following the same progression, profit after tax (PAT) increased from N434.1 million to N589.9 million, showing a remarkable growth of 36 percent over 2006 figures.
It is also expected that the shareholders would seize the opportunity to comment on the company’s first quarter result which was released to the stock market during the week. The stock has been on a rally since the result got to the market, closing Wednesday at N24.02 after a gain of N0.12.
The results show a 43 percent growth in turnover from N852.7 million during the corresponding period in 2007 to N1.218 billion in 2008. In the same vein, profit before taxation rose from N167.6 million to N306.7 miillion, reflecting an increase of 83 percent over the figures for the previous year. Similarly, profit after taxation rose from N114 million in the first quarter of 2007 to N 208.5million in 2008.
Since its listing on the Stock Exchange at N5.50 in 2006, NAHCo’s stock has maintained a phenomenal rise in price, appreciating to a high of N70 in May 2007, thereby providing over 1000 percent capital appreciation for investors.
Indeed, the shareholders have reaped bountifully from the growth in the company’s business. In 2007, shareholders at the 2006 AGM approved a Board resolution for dividend payment of 30k for every 50k share and a bonus scrip of three shares for every two shares held as at May 16, 2007.
It would be recalled that the company’s hybrid offer floated in September 2007 was overwhelmingly over-subscribed by over 600 percent. From the offer price of N17.50, the stock had appreciated significantly, and was traded at N30.50k as at close of trading on Monday, March 11, 2008, representing a 74.2 percent capital appreciation.
NAHCo’s managing director and chief executive, Bates Sarki Sule, said he was happy that the company’s operating results in the year under review witnessed general improvements in all areas and that all the indices of growth moved upward.
According to him, NAHCo has become the typical success story of the Federal Government’s privatisation programme. He added that the Company has witnessed a significant turnaround since 2005 when it was privatized with a new management in place. He disclosed that the Company has invested over US$7million in equipment acquisition, service automation, and managerial capacity building in the last two years.
In the same vein, Patrick Dele-Cole, chairman, said despite the challenging Nigerian operating environment, NAHCo remains a force to reckon with in the ground handling business. His words: “The future of our Company is indeed bright. The Board will continue to support management in its bid to fully re-position NAHCo. We will continue to invest and pursue opportunities in areas that will improve our profitability and revenue base to create superior value for our shareholders, customers and our employees. The Company is being restructured and repositioned for emerging challenges arising from the direct and indirect arrival of new ground handling Companies on the scene”.
It was indeed a successful 2007 for NAHCo as the company won the President’s Merit Award of the Nigerian Stock Exchange and was also admitted into aviance, the first ever international alliance of airport service providers. It also won new businesses which led to opening of new stations in Calabar, Jos, and Enugu.
NAHCo operated for 26 years as a partially owned government company. Government’s 60 percent stake, held on its behalf by the Federal Airports Authority of Nigeria (FAAN), was sold in 2005 through an Initial Public Offer (IPO) which was over-subscribed. The company’s shares were subsequently listed on the secondary market of the Stock Exchange on November 25, 2006
Following its application to become a full member of the alliance and successful audit of its operations, the board of directors of Aviance Limited voted in favour of NAHCo’s entrance into the alliance at the Ground Handling International conference in Marrakech, Morocco.
The concept of aviation alliance (aviance) is to develop synergies through co-operation, standardization and harmonization. Alliance membership is governed by the Board of Directors and is subject to successfully demonstrating service standards and financial stability. NAHCo was adjudged to have met all eligibility criteria.
The company offers comprehensive handling services to 30 out of the 35 airlines operating in Nigeria through the major airports in Lagos, Abuja, Port Harcourt, Jos, Enugu, and Kano.
The shareholding structure showed that British Airways, Lufthansa, Air France, and Sabena (in liquidation) currently own 40 percent, while over 60,000 Nigerian investors own the remaining 60 percent. NAHCo operated as a government-owned company from 1979 till 2005 when it was privatised through the sale of Government’s 60 percent shareholding.
According to the results which was its second year of operations after its privatisation, NAHCo’s turnover grew from N3.245 billion to N3.681 billion, reflecting a 13 percent increase over 2006 figures.
Similarly, profit before tax (PBT) rose by 41.38 percent from N555.9 million to N786 million. Following the same progression, profit after tax (PAT) increased from N434.1 million to N589.9 million, showing a remarkable growth of 36 percent over 2006 figures.
It is also expected that the shareholders would seize the opportunity to comment on the company’s first quarter result which was released to the stock market during the week. The stock has been on a rally since the result got to the market, closing Wednesday at N24.02 after a gain of N0.12.
The results show a 43 percent growth in turnover from N852.7 million during the corresponding period in 2007 to N1.218 billion in 2008. In the same vein, profit before taxation rose from N167.6 million to N306.7 miillion, reflecting an increase of 83 percent over the figures for the previous year. Similarly, profit after taxation rose from N114 million in the first quarter of 2007 to N 208.5million in 2008.
Since its listing on the Stock Exchange at N5.50 in 2006, NAHCo’s stock has maintained a phenomenal rise in price, appreciating to a high of N70 in May 2007, thereby providing over 1000 percent capital appreciation for investors.
Indeed, the shareholders have reaped bountifully from the growth in the company’s business. In 2007, shareholders at the 2006 AGM approved a Board resolution for dividend payment of 30k for every 50k share and a bonus scrip of three shares for every two shares held as at May 16, 2007.
It would be recalled that the company’s hybrid offer floated in September 2007 was overwhelmingly over-subscribed by over 600 percent. From the offer price of N17.50, the stock had appreciated significantly, and was traded at N30.50k as at close of trading on Monday, March 11, 2008, representing a 74.2 percent capital appreciation.
NAHCo’s managing director and chief executive, Bates Sarki Sule, said he was happy that the company’s operating results in the year under review witnessed general improvements in all areas and that all the indices of growth moved upward.
According to him, NAHCo has become the typical success story of the Federal Government’s privatisation programme. He added that the Company has witnessed a significant turnaround since 2005 when it was privatized with a new management in place. He disclosed that the Company has invested over US$7million in equipment acquisition, service automation, and managerial capacity building in the last two years.
In the same vein, Patrick Dele-Cole, chairman, said despite the challenging Nigerian operating environment, NAHCo remains a force to reckon with in the ground handling business. His words: “The future of our Company is indeed bright. The Board will continue to support management in its bid to fully re-position NAHCo. We will continue to invest and pursue opportunities in areas that will improve our profitability and revenue base to create superior value for our shareholders, customers and our employees. The Company is being restructured and repositioned for emerging challenges arising from the direct and indirect arrival of new ground handling Companies on the scene”.
It was indeed a successful 2007 for NAHCo as the company won the President’s Merit Award of the Nigerian Stock Exchange and was also admitted into aviance, the first ever international alliance of airport service providers. It also won new businesses which led to opening of new stations in Calabar, Jos, and Enugu.
NAHCo operated for 26 years as a partially owned government company. Government’s 60 percent stake, held on its behalf by the Federal Airports Authority of Nigeria (FAAN), was sold in 2005 through an Initial Public Offer (IPO) which was over-subscribed. The company’s shares were subsequently listed on the secondary market of the Stock Exchange on November 25, 2006
Following its application to become a full member of the alliance and successful audit of its operations, the board of directors of Aviance Limited voted in favour of NAHCo’s entrance into the alliance at the Ground Handling International conference in Marrakech, Morocco.
The concept of aviation alliance (aviance) is to develop synergies through co-operation, standardization and harmonization. Alliance membership is governed by the Board of Directors and is subject to successfully demonstrating service standards and financial stability. NAHCo was adjudged to have met all eligibility criteria.
The company offers comprehensive handling services to 30 out of the 35 airlines operating in Nigeria through the major airports in Lagos, Abuja, Port Harcourt, Jos, Enugu, and Kano.
The shareholding structure showed that British Airways, Lufthansa, Air France, and Sabena (in liquidation) currently own 40 percent, while over 60,000 Nigerian investors own the remaining 60 percent. NAHCo operated as a government-owned company from 1979 till 2005 when it was privatised through the sale of Government’s 60 percent shareholding.
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