Red Star Express Plc has announced a 20 per cent rise in its profit after tax for the third-quarter ended December 31, 2011.

In the result that was released to the Nigerian Stock Exchange on Friday, the company’s profit rose to N250.3m, indicating N40m increase or 20 per cent increase over N210.2m recorded in the similar period of 2010.

According to the result, the company’s turnover also rose from N3.188bn recorded in 2010 to N3.632bn in the period under consideration.

However, the report noted that the company’s operating income fell to N4.3m, representing a drop by N3.51bn or 45 per cent, compared to N7.85m a year earlier.

Further details on the result showed that the company’s fixed asset stood at N714m in 2011, as against N739m recorded the preceding year. Its working capital stood at N993m, compared to N940m in 2010.

The statement added that cash and bank balances rose marginally to N368m from N345 m in the previous year.

The company had, for the year ended March 31, 2011, rewarded shareholders with 30 kobo dividend amounting to N176.8m.

Also, in its result for the year ended March, 2011, the company reported a two per cent rise in revenue, from N4.14bn in 2010 to N4.2bn by 2011.

Its profit before tax decreased from N473.61m to N411.30m while the profit after tax grew by 85 per cent rising from 180.5m to N333.6m.

The Chairman of the company, Mr. Mohammed Koguna, said that the company was being positioned to take advantage of the opportunities that would be presented by the expected growth in the Nigerian economy.

He said, “As the Federal Government settles down and the domestic banking reform is successfully implemented, the Nigerian economy promises to grow significantly in the new financial year.

“Indeed, International Monetary Fund projects that the economy will grow, at least, at 8.5 per cent this year. Thus, following the adoption of a new strategic vision, your company is fully on course to becoming an integrated logistics one-stop shop.”

He noted that in the area of corporate social responsibility, the company hoped to continue with its commitment to rewarding academic excellence in public secondary schools in Nigeria.

Source: Punch Udeme Ekwere