NAHCO targets N35b turnovers on new strategic growth plan

Nigerian Aviation Handling Company (NAHCO aviance) Plc, plans to grow its turnover to N35 billion as part of its ongoing strategic initiatives to deliver significant growths over the next five years.

The company unveiled this at a presentation of the underlying facts behind the operations to capital market stakeholders on Tuesday, at the Nigerian Stock Exchange (NSE).

The Group Managing Director, Nigerian Aviation Handling Company (NAHCO aviance) Plc, Mrs Olatokunbo Fagbemi, said over the next five years, revenues are projected to rise steadily from N9.8 billion in 2018 to N13.269 in 2019, and from 2020 to 2023, to N16.916 billion, N21.567 billion, N27.495 billion, and N35.054 billion, respectively.

She assured the investing public that NAHCO is confident of paying nothing less than 25 kobo dividend per share, and expects to see significant impact of its transformation agenda and performance as from the third quarter given the seasonal nature of the aviation business.

“We can assure you that we will achieve our targets in 2019. We believe we can achieve our forecasts. We had thought deeply about the figures and put everything in place to ensure we achieve the forecasts. We stand by the forecasts that we have and we believe we will achieve them,” Fagbemi said.

She said the company has already invested about N2 billion on new equipment and plans to scale up to more than N3 billion by the end of this business year, adding that new investments in equipment will help reduce operations cost, as infrastructure failure at the airport, and aging equipment lead to increased maintenance cost.

Fagbemi said with the injection of new ground support equipment and ongoing improvement of airport facilities, operating cost will reduce substantially, enabling the company to pass its steady revenue growth to shareholders.

“We are deliberate and focused on improving and turning around the company. We will focus majorly on strategic initiatives that will deliver operational efficiency and impact the bottom-line,” she said.

According to her, NAHCO aviance is well-positioned to take advantage of the positive growth potential in the aviation industry in Africa and Nigeria, and will continue to invest in various businesses to expand and diversify revenue base and deliver improved returns to shareholders.

Fagbemi further said the management is unmindful of the challenges in the operating environment such as liberalisation of the Nigerian market, increased competition, pricing pressures, and business model obsolescence, and has put enough measures in its growth plan to mitigate possible risks to ensure stable growth in the years ahead.

She said the company will in the immediate period support its growth with long-term loans, and may consider accessing the capital market to raise long-term funds to support its long-term growth.

She said: “one of the first things that happened when I came is that since logistics is not just about the air, it is also about land, and sea, our focus now is: how do we diversify our business to begin to look at the other modes of transportation?”