Red Star Express Records N426m Profit, Declares 40k Dividend
Red Star Express Plc, one of Nigeria’s leading companies, has posted a turnover of N7.3 billion for the year ended March 31, 2017, up by 10 per cent above what was recorded in 2015. The profit before tax (PBT) increased from N572 million to N653 million indicating a growth of 14 per cent, while profit after tax (PAT) rose by 28 per cent from N334.4 million to N426.8 million.
Based on the performance, the board of directors recommended a dividend of 50 kobo per share that amounts to N236 million for shareholders.
The dividend will be paid as from September 7, 2017.
Speaking at the annual general meeting (AGM) in Lagos, the Chairman of Union Bank, Mohammed Koguna, said the company was happy to have posted a profit from its preceding year in spite of challenges.
“I am happy to inform you that despite the challenges posed by the environment during the financial year under review, our staff and management worked assiduously to ensure that our company posted a satisfactory result. Lower oil revenues, tight capital controls, increased inflationary pressure and exchange rate volatility combined to make 2016 a challenging year for Nigeria. By June 2016, the country had slipped into recession, facing its first full year contraction for almost three decades, with a negative annual GDP growth rate of -1.73 per cent compared to about 2.8 per cent growth rate recorded in 2015 as reported by the Nigeria Bureau of Statistics (NBS). Most of the hitherto solid conglomerates had to resort to several cost cutting measures, including the most inevitable of downsizing, in order to remain active in the economy.
The crisis in the nation’s aviation industry escalated from occasional crashes to perpetual flight delays and cancellations. The acute shortage of aviation fuel also worsened the situation with airfares rising by as much as 3005. However, we are aware of government’s multi-faceted efforts in confronting and resolving the economic challenges and we can attest to the fact that they are already yielding positive efforts. We are glad our company made profits despite all,” Koguna said.
He hailed the management and staff, particularly the team of the new Group Managing Director/CEO, Mr. Olusola Obabori and the group executive committee comprising the executive directors and divisional managing directors of the subsidiaries who had worked hard in the year under review to create growth platforms and expansions into related opportunity areas.