NAHCO new group structure to enhance shareholder returns by year end, says GMD
Adesola Afolabi was a businessamlive reporter and Head of Financial desk.
February 6, 20191.1K views0 comments
Olatokunbo Fagbemi the group managing director of the Nigerian Aviation Handling Company (NAHCO) Plc., has assured NAHCO shareholders of significant improvement in returns on investment by 2019 year end. The group MD is hinging this promise on a favourable business outlook, a new group structure and a five year strategic plan being adopted by the company.
According to her, the company sees the business aviation cargo environment grow on the backdrop of government’s current drive for Agric and Agric business.
“We have a lot of growth in that area from our exports. We also have several airlines that are looking to make Nigeria their hub, and many of those airlines currently are our clients. As they grow the business, they will grow with us and that will impact our bottom line,” she said.
Fagbemi was speaking on the occasion of a closing gong ceremony held at the Nigerian Stock Exchange (NSE), last week to honour and introduce the company’s newly appointed Board/Executive members to capital market operators.
In the last five years several subsidiaries from the company had been created, such as Main Land Cargo Options, Energy Power and Infrastructure Company, as well as NAHCO Free Trade Zone Company, Fagbemi revealed.
She said the need to consolidate into a group structure was due to NAHCO’s drive to optimise the benefits to be gotten from these companies which are its wholly owned subsidiaries.
“What we have done in the last six months is to start a journey of creating a five year transformational growth plan being driven by KPMG from 2019 – 2023, and that is the real reason we have the group structure and we believe we will begin to see the dividend and yield of the new structure,” Fagbemi further stated.
She also said the recently adopted group structure of the company will further optimise the resources of the company so as to grow the company by providing better customer services and ensuring that better value can be delivered to the shareholders.
“By the end of this year you will see the impact of what we are doing and we will cascade that down over the next five years.”