Becoming a listed company on the Nigerian Stock Exchange (NSE) is a thing of prestige, no doubt. However, that is not all there is to guaranteeing the success of a business. Little wonder there are many underperforming quoted companies in Nigeria today. It may even interest you to know that out of the 170 companies on the Nigerian bourse, only about six of them account for as much as 68% of the entire market capitalisation of the NSE. The rest are mostly kobo stocks, with market capitalisation so small that they can easily be acquired by a startup. One of such companies is Trans-Nationwide Express Plc.
The company’s market cap
The latest stock market data released by the NSE shows that Trans-Nationwide Express Plc is among the least-capitalised companies in Nigeria. The company has a market cap of merely N328.1 million, which converts to approximately $1 million. A company’s market capitalisation is typically calculated by multiplying the outstanding shares of such a company by the current market price of its shares.
Speaking of share price, Trans-Nationwide’s stock ended last week at N0.70, having remained unchanged throughout the month of August. Year to date, the stock recorded its lowest ebb on Monday, February 21st when it closed trading at N0.63. Its year high was N0.82 on Tuesday, April 16th, 2019.
The company’s business model
According to information available on its website, Trans-Nationwide Express Plc claims that it “is a leading Logistics Company engaged in domestic and International Express delivery, haulage, freight and other ancillary transportation and storage services.” In other words, the company engages in the business of both local and international parcel delivery, whilst offering haulage services.
The company’s target market
Due to the nature of its business, the company has a diverse market audience. According to information available on its website, some of its clients play in such areas of the economy as oil and gas, e-commerce, education, banking, and even the public service.
Considering the wide spectrum of customers the company targets, it is expected that its financial growth will be exponential. But this is not exactly the case. Instead, the company’s H1 2019 financial results show that a total revenue of N410.3 million was realised. Out of this amount, the company’s courier services generated the most amount at N246.6 million, while its warehouse generated the least amount at N4.5 million.
Meanwhile, the total direct operating cost incurred during the period was N158.3 million. In the same vein, administrative expenses stood at N235.7 million. Profit after tax only stood at N10.5 million.
The company’s ownership structure
Information available in the company’s full-year 2018 financial result shows that the company’s substantial shareholding is in the following order:
- MWML Nominees Ltd: 124, 600, 616 units representing 26.58%,
- Saham Unitrust Insurance Ltd: 99, 609, 000 representing 21.25%, and
- Adebayo Thomas Bandele (Otunba): 30, 367, 861, representing 6.48%.
Together, the three substantial shareholders make up 54.31% of the company’s shareholding. The remaining 45.69% are held by retail investors.
Why a startup could buy the company
Trans-Nationwide is currently in dire need of cash to boost its operation. It is rather intriguing that the company is still scrambling to scale/expand 35 years after it was founded in 1984. This is because one of its newest competitors in the market space – Kobo 360 – is expanding aggressively. Though established some years ago, Kobo 360 has made innovative use of technology to expand its operations. Its viable operation has also helped it to raise a lot of money, including the most recent $30 million capital raise which was backed by Goldman Sachs.
The $1 million valuation for Trans Nationwide is merely a fragment of the $30 million Kobo 360 recently raised. What this means, therefore, is that Kobo 360 could easily stake $1 million to buy out the company.
Other delivery startups that could potentially buy this company include GIG, which has grown to become a major player in the Nigerian logistics market. In the same vein, Chinese-owned OPera has the financial clout to cough out $1 million for quick acquisition of this company. Even Max.ng could afford $1 million to acquire Trans Nation-wide. The company recently raised $7 million for expansion purposes.
However, a possible acquisition may never happen. In a recent notice sent by Trans–Nationwide informing the NSE of its intent to raise fresh capital to the tune of N1.33 billion, the company specified that the right issue is limited to its existing shareholders.
US Government removes visa reciprocity fees for Nigerians from December 3
The US government has removed all visa reciprocity fees for Nigerian citizens seeking visas to the US.
The United States government has announced the removal of all visa reciprocity fees for Nigerian citizens seeking visas to the US with effect from December 3.
This disclosure was made through a statement titled, ‘Update on removal of visa fees for Nigerian citizens by the US Government,’ by the Federal Ministry of Finance on Saturday, December 4, 2020, and signed by the ministry’s Spokesperson, Ferdinand Nwonye.
The Federal Government revealed that this positive development follows the removal of excess visa application, processing and biometric fees for United States citizens applying for Nigerian visas by the Nigerian Government.
The statement from the Foreign Affairs Ministry reads, “The Ministry of Foreign Affairs wishes to inform that the United States Government has removed all visa reciprocity fees for Nigerian citizens seeking visas to the United States.
“The positive development is in line with the removal of excess visa application, processing and biometric fees for the United States citizens applying for Nigerian visas by the Nigerian Government. The United States Government has therefore eliminated reciprocity fees for Nigerian citizens with effect from December 3, 2020.”
The foreign affairs ministry, in the statement, also advised prospective travellers to the United States to visit www.travel.state.gov for details.
What you should know
- It can be recalled that in 2019, the Donald Trump administration had imposed the reciprocity fee for all approved non-immigrant visa applications by Nigerians. This fee was charged in addition to visa application fees for only applicants who were issued visas.
- While imposing the additional reciprocity fees, which ranged from $80 to $303 depending on the class of visa, the US Embassy in Nigeria disclosed that the reciprocity fees were a fallout of unsuccessful talks with the Nigerian government over the reduction of visa fees it charged United States citizens.
Ministry of Foreign Affairs, Abuja ______________________
PRESS RELEASE pic.twitter.com/YH8AhPsO2X
— Ministry of Foreign Affairs, Nigeria 🇳🇬 (@NigeriaMFA) December 4, 2020
COVID-19: Over 70% of jobs lost in aviation, tourism industries in 2020 – AfDB
The AfDB has stated that about 5 million jobs have been lost in the aviation and tourism industries in Africa due to the COVID-19 pandemic.
About 5 million out of Africa’s 7 million aviation and tourism industry-related jobs have been lost in 2020. Also, as much as $15 billion in revenue, half of this to African airlines.
This was disclosed by the African Development Bank (AfDB) in a statement issued and seen by Nairametrics on Friday.
Vice President for Infrastructure, Industrialization and Private Sector, AfDB, Solomon Quaynor explained that the pandemic’s effect was felt more in Africa, a claim that was backed up by numerous panelists at the just concluded AfDB’s webinar themed ‘African Aviation Recovery Conference: coordinating an efficient response to the COVID-19 crisis’s effects on the Aviation sector in Africa.’
He said, “The air transport system is really at the forefront of all our collective objectives to realize Africa as a single economic bloc. The centrality of the aviation sector to Africa’s long-term goals by referencing three flagship projects of the AU’s Agenda 2063 that aim to advance open skies and closer connectivity: SAATM, The African Continental Free Trade Area, and the African Passport-Free movement of people.
“The air transport system is really at the forefront of all our collective objectives to realize Africa as a single economic bloc of 1.3 billion people with a GDP of almost 3 trillion dollars, for which we want to begin to really focus and increase trade among ourselves, as well as investment.”
Also at the event, Minister of Aviation, Hadi Sirika called on African governments to embrace full liberalisation of the aviation sector, invoking the Yamoussoukro Decision, which established an arrangement for the gradual liberalization of intra-Africa air transport services.
He said, “Nigeria today has all its bilateral air service agreements with the YD and was also among the first ten countries that signed a commitment to implement the Single African Air Transport Market.”
Dr. Amani Abou Zeid, African Union Commission for Infrastructure and Energy, explained that Africa’s aviation industry represents a huge market that the continent’s airlines need to exploit more fully, with technology and AI offering the way forward for expansion, regional development experts.
“Technology and smart technologies are offering this fantastic opportunity, so let’s make use of AI, let’s make use of the Internet of Things, let’s capacitate our people to revamp and to rethink our industry, to make sure that both our airports and our airlines cater for the very near future,” said Zeid.
What they are saying
A key takeaway was the urgent need for coordinated action among the sector’s actors, including governments, aviation authorities and multilateral stakeholders such as the Bank.
“The time is now. All of us who have really been working on upstream issues such as SAATM, the World Bank, ourselves, the AU and others, now is the time to really pool our advocacy and resources to make this happen once and for all because if we continue to operate as a federation of 54 states as opposed to an integrated market, our economies will continue to be sub-optimal,” said Quaynor
Explore Data on the Nairametrics Research Website
Autogas: Nigerians will not pay N250,000 for conversion, it is free – FG
The FG has clarified an earlier statement about Nigerians having to pay N250,000 to have their vehicles converted from diesel/fuel use to autogas.
The Federal Government has said that news reports of Nigerians having to pay N250,000 to convert their cars from diesel/petrol engines to autogas is false and incorrect.
This was disclosed by Justice Derefaka, the Technical Adviser on Gas Business and Policy Implementation to Minister of State for Petroleum, Timipre Sylva, to newsmen on Friday.
CLARIFICATION BY TECHNICAL ADVISER, @FMPRng ON FG’S AUTOGAS CONVERSION OF VEHICLES: “I granted an interview where I stated that the auto conversion of vehicles to run on gas will amount to N250,000 & Nigerians will need to pay for that. That statement is not correct, it’s wrong.” pic.twitter.com/yQDfZyxhll
— Government of Nigeria (@NigeriaGov) December 4, 2020
On Friday, Derefaka clarified his position as wrong and said the FG plans make the conversion for free. He added that the FG plans to convert 1 million vehicles for free by the end of 2021.
“I granted an interview on Channels Television, where I stated the auto conversion of vehicles to gas will amount to N250k and Nigerians will need to pay for that. That statement is not correct, it is wrong.
“On that note, I will like to state the position that has been made by my boss, Timipre Sylva, that FG will convert those vehicles for free for Nigerians, and we are looking at 1 million vehicles by the end of 2021,” he said.
Explore Data on the Nairametrics Research Website
What you should know about autogas conversion
- Nairametrics reported earlier this week that Justice Derefaka had said vehicle owners in the country would have to pay N250,000 to have their cars converted to autogas from petrol.