September 26, 2017

NAHCO receives shareholders’ nod to raise N25b for business diversification, expansion

NAHCO receives shareholders’ nod to raise N25b for business diversification, expansion... NAIJA INVEST

NIGERIAN Aviation Handling Company Plc (NAHCO Aviance) has received shareholders’ approval to raise about N25 billion from the capital market to finance its diversification programme.

The approval from shareholders to raise fresh capital not exceeding N25 billion from the capital market was received at the company’s 32nd yearly general meeting held in Abuja on Friday.

NAHCO, a diversified enterprise with interests in aviation cargo, aircraft handling, crew and passenger transportation service delivery, is embarking on diversification and expansion programme.

According to the company, the fund would be utilized into ventures like power, free trade zone, and business expansion into other African countries.

The funds, according to the shareholders, could be raised through the issuance of corporate bonds, or other capital market instruments or in any manner the directors dimmed fit locally or internationally.

The shareholders commended the payment of dividend of N369 million, which translates into 25 kobo per share for the 2012 despite the challenges the aviation sector faced in 2012.

Speaking at the meeting, the Chairman of the company, Mallam Suleiman Yahyah said the company was able to improve on its revenue, amid harsh economic environment.

NAHCO receives shareholders’ nod to raise N25b for business diversification, expansion... NAIJA INVEST

NAHCO receives shareholders’ nod to raise N25b for business diversification, expansion… NAIJA INVEST

According to him, revenue rose from N7.142 billion to N7.404 billion, while profit after tax stood at N732 million compared with N807 million 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.  The company, however, improved its cash reserves ratios to 14 per cent in 2012 from 11 per cent in 2011, from efficiency gains equivalent to additional savings of N520 million in 2012,” he said.

Based on the performance, the company directors proposed a dividend of 25 kobo due to every shareholders of the company.

Yahyah told the shareholders that the company’s investment of N2billion in the ultra-modern warehouse in Lagos was beginning to yield desired fruits as NAHCO handled 100,498 tonnes of cargo in 2012 compared with 85,300tonnes in 2011.

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IMAGE: www.jetlifenigeria.com

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