Connect with us

Business News

SAHCO records N665.649 million loss for FY 2018

Skyway Aviation Handling Company Plc (SAHCO) has declared a Loss After Tax of N665.649 MILLION for the full year end 2018. 




Aviation ground-handling operator, Skyway Aviation Handling Company Plc (SAHCO), has declared a Loss After Tax of N665.649 million for the year ended 2018. 

This and other details of the company’s performance are contained in the SAHCO’s financial statements for the year ended 31st December, 2018, posted on the website of the Nigerian Stock Exchange (NSE) today. 

Key Performance Indices recorded mixed fortunes: The Key Performance Indices (KPI) of SAHCO in the year under review are a mixed bag of positive and negative figures. 

[ALSO READ: SAHCO eyes double digit growth after listing on NSE]

Revenue leapt by 23.19% to N6.136 billion in 2018 from N4.981 billion recorded the year before. 


Loss Before Tax was N302.895 million in stark contrast to a Profit Before Tax of N125.901 million recorded in 2017.

The company witnessed a reversal of fortune in its profitability, resulting in a Loss After Tax of N665.649 million in the year under review as against the profit of N217.727 million SAHCO posted in 2017.  

Basil Agboarumi, SAHCO MD

Deal book 300 x 250

The reversal in profitability is hinged on two key factors. First, the company recorded a direct cost of N3.530 billion in 2018 in significant contrast to the N2.657 billion it posted in 2017. This implies that it spent 32.86% or N873 million more on direct cost in 2018 than it did in 2017.  

Coronation ads

[READ FURTHER: Conoil proposes N2 per share dividend for shareholders]

The increase would have been understandable going by the fact that SAHCO recorded a corresponding increase in its revenue. But what makes this difficult to accept is that the increase in revenue had no impact on the company’s profitability, but even made it to record a loss. 

Another factor responsible for the declaration of loss by the company was that its administrative expenses soared by as much as 32.99% from N2.103 billion recorded in 2017 to N2.796 billion posted in 2018. 

For these reasons, the Earnings Per Share (EPS) of SAHCO plunged from a positive N0.51 per share in 2017 to a negative –N0.49 in 2018. What this means is that every unit of the company’s shares incurred a loss of -N0.49 in the year under review. 

Coronation ads

To return to the path of profitability in the current financial year, SAHCO needs to look inwards and cut its expenses significantly. 

Stanbic IBTC

Recall that SAHCO debuted on the main board of the NSE in April, when it listed 1,353,580,000 ordinary shares priced at N4.65 per share. It currently trades on the floor of the NSE at N4.65 per share.

[READ MORE: Neimeth Pharmaceuticals records high Topline, as earnings stay downbeat]

Jaiz bank ads


Ronald Adamolekun is a creative writer with proficiency in journalism, financial reporting, financial analysis and imaginative writing. However, his core competency lies in fiction and short story writing as well as feature writing. He is a graduate of English and Literature from Covenant University, Ota, Nigeria.

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Around the World

US Capitol complex temporarily shut down

The US Capitol complex was shut down temporarily on Monday as a precautionary measure after a small fire broke out nearby.



The US Capitol complex was shut down temporarily for about an hour on Monday as a precautionary measure after a small fire broke out nearby, highlighting the security concerns that are being raised days before the inauguration of President-elect Joe Biden.

The security concerns and the lockdown follows the January 6 attack on the US Capital by supporters of the outgoing US President, Donald Trump, after his encouragement and inciting comments, calling the Presidential election a fraud without any proof of evidence.

READ: President Trump says he won’t attend Joe Biden’s inauguration

Some of them even called for the death of the US Vice President, Mike Pence for presiding over the certification of Joe Biden’s November election victory.

While making the disclosure in a statement, the Capitol Police said that the lockdown has been lifted and the nearby fire contained.


The Acting Chief of the Capitol Police had said that the complex which comprises of the Capitol, its grounds and several buildings were shut down as a precautionary measure.

READ: US Supreme court dismisses Texas bid to overturn presidential election results

The US Secret Service in a tweet post on its official Twitter handle said, “Out of an abundance of caution the U.S. Capitol complex was temporarily shutdown. There is no threat to the public.’’

The city’s fire department in its tweet post said that firefighters put out a fire outside near the Capitol complex.

Coronation ads

The fire department said, “There were no injuries. This accounts for smoke that many have seen.”

READ: Huawei accuses the United States of hacking

What you should know

  • President-elect, Joe Biden is expected to be sworn in at the US Capitol on Wednesday amid an unprecedented cordon of security, with strict physical distancing measures in place due to threats of violent attacks in Washington and the rising cases of coronavirus infections.
  • Donald Trump, who is just fresh from a historic second impeachment from the congress had said he would not attend, although his deputy, Vice President Mike Pence, had given an indication that he would attend.

Continue Reading

Corporate Press Releases

Kinyungu Ventures Research calls for changes to cut-and-paste VC strategy in Africa

The Paper recommends investment structures and approaches tailored to African operating conditions.



East African venture advisory firm, Kinyungu Ventures has published a white paper Chasing Outliers: Why Context Matters for Early Stage Investing in Africa that has found that there continues to be a wide misalignment between traditional venture capital models and the African market. The team behind the report is now calling for a broadening of approaches to institutional investment on the continent. Speaking with 100 Pan-African founders, investors, and LPs across 15 African countries, the research suggests investors should prioritize investing structures and practices that reflect the realities of operating in Africa. This includes adopting more flexible investing structures with longer time horizons.

According to the paper, there are multiple mismatches between key characteristics of Silicon Valley VC and African markets, which influence how startups and funds maneuver as well as what results they expect and produce. Findings show that African markets are large, but also fragmented, and its consumers have limited purchasing power. Furthermore, consumers on the continent are difficult to acquire and retain, yet the sheer size of the African market also presents a real opportunity for profit once the environment is clearly understood. The paper’s key recommendations for funds include:

  • Adopting more focused investment strategies, such as investing in b2b companies or cross-subsidizing a portfolio with less risky, steady return assets.
  • Considering non-unicorn investing models geared at more resilient companies, with returns distributed more widely across the portfolio
  • Using flexible structures such as debt or PCVs to accommodate market-level changes, where feasible
  • Allowing a longer time horizon for returns, understanding that growth could be slow and difficult to achieve for many companies

Kinyungu Ventures catalyzes resilient businesses for local intergenerational prosperity. The East African-centric investor focuses on entrepreneurship in East Africa, startups, seed funding, debt financing, impact investing and angel investing.

Speaking on the launch of the white paper, Tony Chen, Managing Director of Kinyungu Ventures and co-publisher of the report says, “Capital in Africa is scarce and pursuing a “growth at all costs” strategy where capital pools are shallow presents huge risks for companies. We’ve also found that many great businesses don’t fit the typical VC profile, but have tremendous unfulfilled potential”.

Tayo Akinyemi, lead researcher and writer of the report added: “In our conversations with numerous investors and founders, it is clear that nuances in variables such as consumer behavior, cultural norms, and business practices impact startups significantly and being on the ground is crucial for success. While African markets aren’t always able to provide the outsized returns that Silicon Valley typically looks for in high-growth companies, a more focused strategy here could unlock real gems, as has been proven by some of the startup successes the continent has seen over the years.”


Continue Reading


Neimeth Pharmaceuticals to raise N5 billion in additional equity

The Board of Neimeth is set to raise N5 billion additional equity upon the approval by shareholders of the company at the AGM.



Neimeth Pharmaceuticals
The Board of Directors of Neimeth Pharmaceuticals has revealed plans to raise N5 billion in additional equity upon approval by shareholders of the company.
The information was contained in a press release published on the NSE and signed by the Company Secretary, Mrs. Florence Onhenekwe.

The disclosure is part of the resolutions reached at the Board of Directors meeting of 15th January 2021. At the end of the meeting, it was resolved that the company would raise additional equity to the tune of N5 billion.

In line with this development, a board resolution proposing to raise equity will be presented at the Annual General Meeting of the Company scheduled to hold on 9th March 2021.

What you should know

  • The Board of the Company is yet to disclose if the additional equity would be a rights issue or a private placement, as the details of the additional N5 billion equity set to be raised are yet to be finalized.
  • The fund will help the company’s management to execute key strategies that will reposition the company as a leader in the healthcare industry, with the hope to deliver better returns on investment to shareholders.
  • The additional equity financing will also increase Neimeth’s outstanding shares, which will dilute earnings and impact the Company’s stock value for existing shareholders.
  • The move has the potential to trigger a sell-off of the company shares on the Nigerian Stock Exchange.

Continue Reading