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Company Results

SAHCO suffers 92% decline in profit, as travel restrictions bite harder

Analysis of the company’s results indicates that revenues dipped as a result of COVID-19 travel restrictions.

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SAHCO suffers 92% decline in profit, as travel restrictions bite harder

Skyway Aviation Handling Company Plc (SAHCO), reported revenues of N3.1 billion in the second quarter of 2020 compared with N3.5 billion in the same period in 2019. This represents an 11.9% decrease relative to the same period last year.

SAHCO Plc, formerly known as Skypower Aviation Handling Company Plc, prior to its privatization, is 100% owned by the Sifax Group, and incorporated as an Aviation Ground Handling Service Provider under the Nigerian Company & Allied Matters Act of 1990. SAHCO Plc’s  duties involve all the actions that take place from the time an aircraft touches down on the tarmac, to the time it is airborne. The company also ensures that the right assignment is carried out in an efficient, speedy, and safe manner, deploying the right tools.

A careful analysis of the latest results of the company indicates that revenues dipped as a result of COVID-19 travel restrictions. Travel restrictions affected SAHCO Plc’s operations, but an increase in revenues from domestic and foreign cargo handling gave the company a lifeline amidst business uncertainties.

SAHCO Plc has 10 revenue-generating segments: foreign handling, domestic handling, cargo handling – export, DCS/PAX handling, cargo handling – domestic, equipment rental, investment property, pilgrimage, haulage/crew bus services, and airport security services.  Revenues from eight of these segments declined in Q2 2020, compared with the same period last year; however, revenues from cargo handling increased.

(READ MORE:NAHCO retrieves Ethiopian Airlines handling deal)

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Revenues from cargo handling – income increased by 16.04% to N2.2 billion in the current period, compared with  N1.9 billion in the same period last year. Revenues from cargo handling – export increased by 8.26% to N146.7 million in the period under review, relative to N135.5 million in the same period last year.

It is expected that performance would improve, following the lifting of foreign travel restrictions on the 5th of September 2020. However, things may not transform sooner, as there are one or two challenges facing the sector. For example, although travel restrictions have been lifted, the conditions passengers have to meet before travel, may be overwhelming for some people to go through; thus, the number of travelers is not expected to peak yet.

The Earnings Per Share (EPS) of the company declined by 92.11% in Q2 2020, from 12.67 kobo to 1 kobo, compared with the same period last year. The decline in distributable profit by 93.34% to N11.42 million in Q2 2020, relative to N171.50 million in Q2 2019, contributed to this decline.

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SAHCO Plc’s shares were listed on the floor of the NSE on April 26th, 2019. The shares currently trade at N2.93 per unit. The highest price for a unit of share in 52 weeks was N4.19 and the lowest N1.42. A total of 20,391 units was sold in the last seven days trades. Shares outstanding is 1,353,580,000 units and its market capitalisation is N3,965,989,400 billion.

(READ MORE:FG travel restrictions on 13 countries: A little too late?)

Nigerian Aviation Handling Company Plc (NAHCO), operates in the same sub-sector as SAHCO Plc – transport-related Services. NAHCO Plc’s share price is N2. The highest price for a unit of share in 52 weeks was N3.01 and the lowest is N1.90. A total of 8,162,828 units was sold in the last seven days trades. Shares outstanding is 1,624,218,750 units, and its market capitalisation is N3,248,437,500 billion.

With the surge in cargo revenues, SAHCO Plc recently received delivery of new Ground Support Equipment (GSE). This is expected to improve its ground power operations, in terms of cargo and passenger loading operations, as well as aircraft mobility. The newly acquired fleet of equipment consisted of 50 Cargo pallet dollies, 45 container dollies, 3 passengers step loaders, and 50 baggage tag machines. The company also recently introduced a branded Ankara uniform for its frontline operating staff. The MD of the company, Mr. Basil Agboarumi, noted that the reasoning behind the branded uniform is to showcase the Nigerian culture to the world.

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Company Results

CAP Plc: Increase in investment income, others boost revenues

CAP Plc recorded a boost in its two revenue-generating units, as total revenues grew.

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CAP Plc is running at a risk of increased bad debts

CAP Plc reported revenues of N5.99 billion in 2020 – 3.63% increase compared to N5.78 billion in the corresponding period of 2019.

What you should know

The key highlights of its financial year 2020.

  • Revenues increased by 3.63% from N5.77 billion to N5.99 billion YoY.
  • Revenues from paint products increased to N6.05 billion, +3.69% YoY.
  • Revenues from services increased to N33.90 million, +44.11% YoY.
  • Cost of sales increased to N3.30 billion, +8.86% YoY.
  • Gross profits decreased to N2.69 billion, -2.06 YoY.
  • Operating profits decreased to N1.17 billion, -20.94% YoY.
  • Pre-tax profits decreased to N1.36 billion, -24.50% YoY.
  • Post-tax profits decreased to N927.50 million, -24.50% YoY.
  • Earnings Per Share decreased to 133 kobo, -24% YoY.
  • Total assets increased to N7.82 billion, +15.64% YoY.
  • Total liabilities increased to N4.37 billion, +3.07% YoY.
  • Total equity increased to N3.45 billion, +36.78% YoY.

(READ MORE: Nigeria’s inflation rate hits 13.71% as food prices soar)

Bottom Line

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CAP Plc recorded a boost in total revenue from an increase in its two revenue-generating units.

Though companies have generally recorded decreased revenues in the last three quarters, mostly due to COVID-19 – CAP Plc was able to increase its total revenues; however, pre-tax profits decreased.

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Company Results

Custodian Investment Plc posts Profit After Tax of N1.5 billion in Q3 2020

The company recorded impressive results in some key financial metrics such as gross revenue and profit after tax.

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Custodian Investment Plc posts Profit After Tax of N1.5 billion in Q3 2020

Custodian Investment Plc has declared a Profit After Tax (PAT) of N1.5 billion in the third quarter of 2020, as against N1.37 billion posted the same period in 2019.

This is according to the consolidated financial report of the firm for Q3 2020.

READ: Guinea Insurance Plc gives optimistic Q3 earnings forecast in spite of COVID-19

READ: PZ Cussons and its sticky pattern of losses

What you should know

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Custodian Investment Plc also recorded impressive results in some key financial metrics such as;

  • Gross Revenue grew by 42% from N15.85 billion to N22.52 billion.
  • Interest income advanced by 11.3% Year-on-Year.
  • Investment income gained 25.4% from N5.61 billion to N7.03 billion.
  • Earnings per share appreciated by 50% from N24 to N36 for the period under view.
  • Other investments and operating income grew by approximately N6.40 billion.
  • Total assets also grew by 27% from N118.01 billion to N149.94 billion for the period under view.
  • Profit before tax marginally grew by 2.8% from N1.69 billion to N1.73 billion.

READ: Presco Plc projects N24.53 billion turnover in Q4 2020

READ: This FMCG giant has hit a one year low

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What this means

  • The growth in revenue and profitability is attributable to an increase in financial and reinsurance assets which appreciated by 35.62% and 32.5% (Y-O-Y) respectively.
  • An increase in investment and interest incomes were also very important in driving revenue.
  • On the contrary, despite recording increased gross revenue, the net profit margin decreased over time, from 23.91% recorded as of Q3 2019 to 5.8% in Q3 2020. Thus, indicating a probability of weak cost control mechanism or that variable values are not well controlled.
  • The Net profit margin indicates that the company earned N0.057K in profit for every N1 it received in revenue as of Q3, 2020. This is lower compared to N0.24k for every N1 it earned in revenue in Q3, 2019.
  • This is evident in the higher operating expenses recorded as of Q3 2020 which is up by 97.4% when compared with the figures obtained in the corresponding period last year (Q3 2019).

READ: Football: Manchester United net debt rises by 133% to £474.1million

READ: Where to invest $10,000 right now

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Company Results

Trans-Nationwide Express Plc suffers N79 million loss in Q3 2020

Trans-Nationwide Express Plc has recorded a loss that amounts to the tune of N79 million in Q3, 2020.

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Trans-Nationwide Express Plc, Trans-Nationwide Express Plc appoints new Managing Director 

Trans-Nationwide Express Plc, a logistics and courier service company in Lagos, Nigeria, suffered N79 million loss in the third quarter of 2020.

This disclosure was based on the Q3 2020 financials sent to the Nigerian Stock Exchange on Wednesday.

READ: NIPOST’s new charges could have ruined the e-commerce/logistics industry

Breakdown

  • Revenue declined by 7.5% Year-on-Year, from N548.3 million as of the corresponding period last year to N507.17 million this year.
  • The dip was largely due to a decline in revenue from courier services, which contributed about 54.1% of the total revenue as of Q3, 2020.
  • The revenue from courier services declined from N326.44 million to N274.40 million for the period under view.
  • On the contrary, other revenue churning segments like Freight income, logistics income, internal mailing income, and warehouse all recorded a positive outlook, as they all grew viz-a-viz last year’s figures.
  • Gross profit declined by 7.1% from N321.23 million to N298.40 million in the period under view.
  • Administrative expenses increased by 17.5% from N321.0 million to N377.1 million within the period under view.
  • Cash received from customers recorded a dip from N542.28 million to N523.07 million, indicating a slip of about 3.5%.

READ: BRT owners, Primero says they lost N100 million to #ENDSARS violence

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What this means

The pandemic affected several businesses and sectors, the transportation and logistics sectors were not exempted. The loss might have been largely due to the period of economic inactivity, due to embargo on inter-state and international travels.

The high cost of maintenance, coupled with little or no revenue in those periods also played a major part.

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READ: PZ incurs N1 billion in exchange rate loss 

READ: Lafarge Africa Plc: Increase in cement sales boosts revenues

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