Red Star Express Plc has proposed to pay its shareholders N253 million worth of dividends for the financial year ended March 31st, 2019. This will translate to 43 kobo per share.
The total declared dividend represents a 7.2% or N17 million increase compared to the dividend of N236 million (at 40 kobo per share) which the company paid in FY 2018.
This, along with more financial information, is contained in the company’s recently-released audited financial statements which was published on the Nigerian Stock Exchange website today.
If approved, the company will close its register of shareholders by the close of business on July 16th, 2019, preparatory to the payment of dividend on August 15th, 2019.
Key Performance Indicators Improved: The company recorded significant improvement in its major performance metrics in the year under review.
Revenue increased by 19.73% from N8.4 billion in full-year 2018 to N10 billion in full-year 2019. Profit before tax also increased to N743.4 million in 2019, up from N610.5 million in 2018.
Similarly, profit after tax rose from N347.5 million in 2018 to N466.2 million in 2019, indicating 34.15%. The increase in the proposed dividend payment rode on the back of this growth in the bottom line.
Why this matters: Shareholders have a good reason to be excited about the company’s overall performance. The main reason to celebrate lies in the consistency at which the company has been paying dividends in the last three years.
Red Star Express’s dividend history reveals that year on year dividend payout by the company has recorded moderate growth with 40 kobo, 40 kobo, and 43 kobo paid in 2017, 2018 and 2019 respectively.
For a stock currently selling at N5.50 on the NSE at Earnings Per Share (EPS) of N0.83 and with a Price to Earnings Ratio (P/E Ratio) of 5.97, it is safe to say that stock will be a good investment for potential investors.