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T H I S D AY • MONDAY, JULY 25, 2016
BUSINESSWORLD
NEWS
NAHCO Board of Directors Recommends RenCap, CSL Stockbrokers Place N324m Dividend Stories by Goddy Egene The Board of Directors of Nigerian Aviation Handling Company (NAHCO) Plc has recommended a dividend of N324.8 million to the shareholders for the year ended December 31, 2015. The dividend, which translates to 20 kobo per share, will be approved by the shareholders at their forth coming annual general meeting (AGM) scheduled to hold in Abuja, on July 26, 2016. In his report contained in the annual report released ahead of the AGM, Chairman of NAHCO, Alhaji Suleiman Yahyah said in spite of the difficult operating environment, the company recorded a five per cent increase in turnover in its 2015 financial year. The company achieved a marginal improvement in its performance from N8.1 billion in 2014 to N8.5 billion in turnover in 2015. “Despite the global challenges and Nigeria’s political
economy, the company grew its Profit Before Tax (PBT) from N769.5 million in 2014 to N796.8 million in 2015. The Board of the company has lowered the cost of doing business and shifted its funding structure from debt to equity, while approving the repayment of the N2 billion Series 1 Bond from its Bond Cash Reserve Account which is due by the third quarter of 2016. These two steps will free up cash for future distribution to shareholders as enhanced dividend and to increase our cash buffer,” the chairman said in his statement due to be presented to shareholders,” Yahyah said. He disclosed that the company is investing in the NAHCO Agric Zone Project in 2016, adding that the company has appointed Mr. Bamidele Adelaja as the Chief Financial Officer (CFO). As part of consolidation of its leadership position in the ground handling services
industry, the company recent signed a string of new international and local businesses. They include international air operators, Meridiana Fly (Italian Airline), Mid – African Airlines (new Gambia Flag Carrier) which are making entries into Nigeria for the first time and Rwandair which had just concluded plans to fly the Abuja – Kigali route. Also concluded is the deal with Mainstream Aviation; a major Cargo Air-Freight (Logistics) Airline operating both international and local flights. NAHCO also signed deals to provide ground handling service for Air Peace in Akure, Ondo State, and for fast rising local operator, Azman Air in Maiduguri and Yola. Speaking on the development, the Chief Commercial Officer (CCO) of the company, Mr. Seyi Adewale said: “It is during difficult business periods or cycles that the ‘wheat is separated from the chaff’. At this stage, it’s very clear
that NAHCO is an excellent and efficient brand that has endured 36 years of aviation (ground) handling efficiency and qualitative standards. Our high-end ground support equipment is well maintained and upgraded. We have a strong and motivated workforce, and we are sticklers for continuous business development and innovation. Our professional and operating ethics sets us far above other Terminal operators and this is further proven by our growing local and international airline partners. We would continue with our driving force and slogan to deliver service beyond expectation.” According to Adewale, the new businesses are a testimony of the excellent service delivery which NAHCO is known for globally, pointing out that more and more operators are realising that they deserve value for money and are turning to a service provider that can ensure that.
‘Buy’ Rating on UBA Stock Renaissance Capital and CSL Stockbrokers have placed a “Buy” rating on United Bank for Africa (UBA) Plc, describing the bank as very attractive with a strong potential to generate returns of more than 100 per cent in the next 12-month period. The “buy” rating on UBA, underlines its attractiveness despite the general downward trend at the stock market. Renaissance Capital, in its recommendation, was bullish on UBA stocks forecasting that the bank’s share price could rise to N9.40 per while CSL Stockbrokers, a member of FCMB Group, said UBA could trade at N7.21 per share in the next 12 months. The stock closed at N4.60 on Monday. However, on the average, analysts’ consensus target price is N8.50 per share for UBA for the 2016 business year. Some market operators said the strong investment case for UBA followed the recent affirmation of its credit rating by Fitch as well as an upgrade by Agusto & Co. Fitch International, one of the foremost global rating agencies affirmed the bank’s viability rating at “B” an affirmation of its strong risk management framework, which has helped keep non-performing loans ratio at a moderate level of 1.74% as at the end-March 2016, as against industry average of over 6%, as reported by Fitch in its recent report on Nigerian banks. Fitch also upgraded UBA’s
outlook to stable from Negative, thus reinforcing the strong outlook on the Bank, especially as its diversified network across eighteen other African countries make it relatively immune against the potential cyclical volatilities in any of its country of operations. Also, Agusto & Co, upgraded the bank’s rating from “A+” to “Aa-“, with a stable outlook. According to Agusto & Co, “the rating of UBA was upheld by the bank’s improved capitalsation, good liquidity and large pool of stable deposits, strong domestic presence supported by the Bank’s extensive branch network and growing alternative banking channels. “We note improvement in profitability and the Bank’s good asset quality. The Rating takes into cognizance the weak macroeconomic climate on the banking industry’s asset quality, which we do not expect UBA to be excluded. Nonetheless, we note positively its diversified geographical reach, which will cushion to an extent the impact of the weak Nigerian economic climate,” Agusto & Co stated in its credit rating report. UBA is the third largest lender in Nigeria and a provider of financial services across 19 African countries, and with presence in New York, London and Paris. The bank serves almost 11 million customers across expansive brick and mortal branches as well as diversified alternative electronic banking channels.
NIPOST Commends Red Star for Compliance BONDING WITH FAMILIES
Chief Executive Officer, HS Media Group, Mr. Taye Ige; Executive Director, Corporate Services, UACN plc, Mr. Joe Dada; ace Comedian, Okey Bakasi; and Corporate Marketing Services Manager, UACN, Mr. Seyi Fawehinmi, at the unveiling of ‘UAC Unscripted’ – a Family TV Game show, in Lagos…recently
Cormart Launches New Liquid Spray Starch Raheem Akingbolu A consumer goods and chemicals company, Cormart Nigeria Ltd has launched a new liquid spray starch under the RENEW brand franchise. The company, which prides itself on manufacturing top notch brands for household and commercial use is elated about this new development. RENEW has become the market leader in the mass market starch sachet segment in Nigeria over the last 18 years due to its consistent product quality, ease of use
and economical value to consumers. The new spray starch is specially formulated to add extra crispness to clothes and prevent stains on fabrics. It helps keep clothes and linens look new for longer, while adding a fresh scent and comes in an easy to use 750ml trigger spray bottle. The product formulation is a result of the extensive R&D that was put in place to ensure optimal quality and crispness satisfaction. “We are thrilled to release the new RENEW liquid spray starch. This product will help us
expand our leading position in the textile care segment” said the Managing Director of Cormart Nigeria Ltd, Martin Middernacht. Cormart launched the product at the African Fashion Week held at Eko Hotel and Suites, Lagos and it is available in leading stores and open markets nationwide. During an interview at the product launch, Executive Manager, Cormart Nigeria Ltd, Dr. Johannes Flosbach said: “We value our customer’s feedback so we developed this product to meet their
needs in a convenient and cost effective way.” For Chukwuka David, an entrepreneur and an age old user of the Renew cold water starch, “I have been using the Renew cold water starch consistently over the last 15 years and it has been a great product. I must commend the management of Cormart Nigeria Limited for their foresight to expand its product range with the RENEW liquid spray starch as I have been looking forward to it. Its quality has gone a long way in sustaining my business over the years.”
The Head of the Courier Regulatory Department (CRD) of NIPOST, Dr. Simon Emeje has commended the management of Red Star Plc for its compliance to all regulatory rules laid down by the department for the courier industry. Emeje gave the commendation when the management of Red Star company, led by the outgoing Group Managing Director, Mr. Sule Bichi visited the CRD. He stated that if the CRD were to give awards to those in the industry, he will give Red Star Plc an award as the best in compliance to regulatory rules among many others. He said this is a reflection of the leadership style brought to bear on the company by Bichi. Emeje said: “Bichi is someone who is ready to do what is right at all times, even in the face of adversity. He is a gentleman who is highly committed to the industry and
he makes sure he complies with every regulation as at when due. If we have any forum, we will continue to make use of his experience and invite him”. Corroborating this, Head of Enforcement, CRD, Andrew Ebiloma, noted that Red Star as a company has always been at the forefront of most of the trainings and seminars organised by the regulatory body for operators in the industry. Speaking earlier, Bichi disclosed that Red Star is undergoing changes in leadership and structure so as to re-strategise for the future, hence the need to keep the regulatory authority informed on developments and new innovations. He noted that the company has expanded with different subsidiaries that have enormous growth potential which is required to contribute positively to the industry.