The revenue base of the Nigerian Aviation Handing Company now stands at N7.4bn.

The new figure emerged at the end of the business year ended December 2012

This amount, which was released to the Nigerian Stock Exchange on Wednesday, showed an increase of 4.2 per cent over the N7.1bn recorded the previous year.

Thus, the company has announced a proposed dividend payout of 25 kobo for every 50 kobo share held by its shareholders.

According to the company, this dividend reflects a yield of 4.6 per cent, which compares favourably and above market average for publicly listed companies under the new International Finance Reporting Standard framework.

The statement from the company said its growth prospect and forecast envisaged doubling of its earnings per share and dividend payout within the next two years; as it expected increased earnings from its cargo business and expansion initiatives.

It quoted its Chief Finance Officer, Mrs. Chinwe Chiji-Nnorom, as saying that the company was able to perform above board in spite of the challenging operating year.

She said the period under review was a difficult year occasioned by fuel subsidy strike in January 2012 and other strikes affecting its operations, reducing the number of flights, coupled with security challenges at some of its locations.

This, she added accounted for the dip in the group’s profit before tax from N1.2bn in 2011 to N736m in the year under consideration.

She said, “Despite the challenges we faced that year, we are hopeful of a better year ahead as the company’s expansion drive, enhanced cargo operations, increased investment in ground handling assets, interest in the power sector and the plan to make Lagos a hub for a Free Trade Zone are expected to pay off in 2013 and succeeding years.

“The company has invested about N3.9bn in an ultramodern warehouse, which was commissioned last May as well as in re-fleeting its ground support equipment. About N1bn of this amount was invested in 2012. The Lagos warehouse is the largest warehouse facility in the West-African sub-region, and is capable of conferring regional cargo hub status on Nigeria.”

Chiji-Nnorom explained that the company embarked on the renovation of the Kano warehouse as part of its support for the Federal Government’s airport modernisation and expansion programme, adding that it also instituted an IATA-approved learning and development centre to enhance better training for workers and ensure collaboration with international training bodies.

“Although the combined effect of these investment activities has impacted on profitability in the short term, based on forecasts for the future, it is projected to show a positive impact on earnings and dividend payout in the next two years,” she stated.

Source: Punch (by Udeme Ekwere)