Nigerian Aviation Handling Company (Nahco) Plc will grow its top-line consistently over the next five years to reach a record N35.05 billion by 2023.
The company also plans to grow its profit by 323.3 per cent to N2.13 billion in 2019 as the management of the company assured that ongoing strategic initiatives would deliver significant growths over the next five years.
The management of the company presented the underlying facts behind the operations of the company to capital market stakeholders yesterday at the Nigerian Stock Exchange (NSE).
Group Managing Director, Nigerian Aviation Handling Company (Nahco) Plc, Mrs Olatokunbo Fagbemi, said the company expects its revenue to rise steadily from N9.8 billion in 2018 to N13.27 billion in 2019 and consecutively to N16.916 billion, N21.567 billion, N27.495 billion and N35.054 billion in 2020, 2021, 2022 and 2023 respectively.
She outlined that the company would achieve a turnover of N13.27 billion in 2019 as against N9.88 billion in 2018 while profit before tax is expected to rise from N503 million in 2018 to N2.13 billion in 2019. Profit after tax is projected to rise to N1.81 billion.
Fagbemi said the management of the company is not unmindful of the challenges in the operating environment such as liberalisation of the Nigerian market, increased competition, pricing pressures and business model obsolescence, the company has put enough measures in its growth plan to mitigate the possible risks and ensure stable growth in the years ahead.
She noted that while the company will in the immediate period support its growth with long-term loans, it may consider accessing the capital market to raise long-term funds to support its long-term growth.
She noted that the transformation agenda became necessary after a review of Nahco’s business process in December 2018 pointing out that the strategic pillars of the company’s growth plan are operational excellence, digital transformation, people and culture transformation, organic and inorganic growth and diversification.
Divisional Head, Listing Business, Nigerian Stock Exchange (NSE), Mr. Olumide Bolumole, commended Nahco for providing capital market stakeholders with timely information about its financial performance, as well as its strategic and operational developments.
Bolumole, who represented the Chief Executive Officer of NSE, Mr Oscar Onyema, also commended Nahco on its transformation agenda which commenced in 2018 with an upgrade in the company’s facilities and purchasing of new ground handling and service equipment for business efficiency.
He noted that the company had also taken the right steps with its five-year strategy plan which aaimed at completely restructuring the organisation for business expansion.
“We implore the board and management of Nahco to also consider taking advantage of the various benefits that the Nigerian Stock Exchange provides for both capital formation and business expansion. At the Exchange, we continue to provide a platform to support listed companies in meeting their strategic business objectives,” Bolumole said.
The Nation