Red Star Express posts N426.8b profit, declares N40k dividend

Red Star Express Plc, has posted a profit after tax of N426.8million in 2016 operations, against N334.4million achieved in the corresponding period in 2015. The company’s profit before tax also increased from N572million to N653million during the period under review.

Besides, shareholders of the company approved 40 kobo dividend for every 50 kobo share totalling N236million, which will be paid on September 7, subject to the deduction of appropriate withholding tax.

Reviewing its performance during the 24th yearly general meeting in Lagos recently, the Chairman, Dr. Mohammed .H. Koguna, told shareholders that the company’s turnover grew to N7.3billion which is 10 per cent higher than the preceding year.

According to him, Red Star is 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. Despite being a global phenomenon, unemployment has been a major challenge successive administrations contend with yearly.”

He added: “Red Star Express remained steadfast in her policy of making sure that the social and economic welfare of its stakeholders are preserved and sustained through the Red Star Foundation. However, to show commitment on this, during the year under review, the company awarded 20 additional scholarships to secondary school students from the Eastern, Western and Northern parts of Nigeria.”

He explained that the company looks forward to restructuring as a Holding Company from its current Group Structure, which it has run for over seven years.

This, according to him, became necessary in view of the various initiatives the company seeks to explore and the need to have a more structured accounting system.

He added that the company opened a branch office in the Niger Republic and is gradually building capacity in pick-up and delivery of mails and packages.