The Group Managing Director, NAHCO, Mrs Olatokunbo Fagbemi, while speaking at the company’s Facts Behind the Figures in Lagos on Tuesday, said the group planned to grow its profit by 323.3 per cent to N2.13bn as the ongoing strategic initiatives would deliver significant growth over the next five years.
She said new investment in ground support equipment, strategic investments in infrastructure and human capital development and improving operational efficiency at the airports would drive considerable growth this year and the years ahead.
Fagbemi said the company would achieve a turnover of N13.27bn in 2019 as against N9.88bn in 2018, while profit before tax is expected to rise from N503m in 2018 to N2.13bn in 2019.
She projected that profit after tax would rise to N1.81bn.
She said, “Over the next five years, the company expects its revenue to rise steadily from N9.8bn in 2018 to N13.269bn in 2019, N16.916bn in 2020, N21.567bn in 2021, N27.495bn in 2022 and N35.054bn in 2023.
“The company is confident of paying nothing less than 25 kobo dividend per share this year. We expect to see a significant impact of the transformation agenda on 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 stated that the company had already invested about N2bn on new equipment and planned to increase such investment to more than N3bn by the end of the year.
She noted that new investment in equipment would particularly help to reduce operations cost, which she said were high due to infrastructure failure at the airport and ageing equipment maintenance cost.
She said with the injection of new ground support equipment and ongoing improvement of airport facilities, operating cost would reduce substantially, which would enable the company to pass its steady revenue growth to shareholders.
Fagbemi also revealed that the company planned to expand its operations into different business lines, adding it might consider accessing the capital market to raise long-term funds to support its long-term growth.
She said the transformation agenda became necessary after a review of the company’s business process in December 2018.
According to her, the strategic pillars of the company’s growth plan are operational excellence, digital transformation, people and culture transformation, organic and inorganic growth and diversification.