NAHCO Plc's shareholders approve dividend payment

All things being equal, every shareholder of the Nigerian Aviation Handling Company (NAHCO) will get a dividend of 25 kobo per share by the 26th of July 2019.

The Board of Directors of the cargo and logistics company disclosed this in a statement signed by the Company Secretary, Bello A. Abdullahi, and published today on the Nigerian Stock Exchange (NSE).

NAHCO

The dividend payout is subject to shareholders’ approval at the forthcoming Annual General Meeting (AGM) of NAHCO which will be held on 26th July 2019 at Bristol Palace Hotel, Kano. NAHCO’s shareholders whose names appear on the company’s register by 8th July 2019 will receive the dividend payment if approved.

In the meantime, the closure of the company’s register of members has been scheduled to hold between 9th and 11th July 2019. To this end, shareholders who have completed the e-dividend mandate forms will have their accounts credited appropriately.

[ALSO READ: CAP Plc will use its entire profit after tax to pay dividends]

What you should know: Going by NAHCO’s dividend history, the company has consistently paid dividends to shareholders over the past ten years without fail. The company’s dividend yield currently stands at 7.81% according to Bloomberg.

Asides the consistency, the value of the dividends declared fluctuated in some years, notably in 2009 and 2010 when the company paid dividends twice. The winning factor for investors, however, is NAHCO’s ability to pay dividends despite harsh economic conditions over the years. That NAHCO has managed to keep afloat of turbulent times has surely sustained investor’s confidence in the firm.

NAHCO
Tokunbo Fagbemi, Group Managing Director/Chief Executive Officer, NAHCO

Company Invests N3.6bn in Machinery: NAHCO has announced its intention to commit a staggering N3.6 billion to new export machinery. The expansion is particularly aimed at leveraging the enormous potential in the agricultural export business which will guarantee improved customer service and operational efficiency.

Deal book 300 x 250

[READ ALSO: FY 2018: NAHCO’s shareholders to get N406 million dividend]

Mrs Tokunbo Fagbemi, the Group Managing Director/Chief Executive Officer of NAHCO, unraveled the details of the proposed expansion at a media briefing in Lagos on Sunday. Specifically, the fund will be invested in developing the company’s processing area, build an ultramodern warehouse and ultimately enhance its relationship management.

The two phases of expansion: Fagbemi went further to say that the first phase of the delivery of the Ground Support Equipment (GSE) will be completed this month. The final phase is expected to be launched before the end of this year.

What this means: The news is a cheering one for investors as the proposed digitalisation is expected to translate to a good return on investment in the long run. The agricultural export expansion will diversify NAHCO’s key strategic business units while enlarging its streams of income.

To buttress this, Mrs Fagbemi affirmed that, “Three key things came out from the review process with KPMG – one was, we are going to take a quantum leap and then in the next five years we are going to double our revenue by five times, which will be roughly four times what we have in 2018.”

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