One of Nigeria’s leading logistics company, Red Star Express Plc, has posted a turnover of N7.3 billion in the year under review which is 10 per cent higher than the preceding year.
The profit before tax increased from N572 million to N653 million, while profit after tax also increased from N334.4 million to N426.8 million.
This was declared at the recently organised 24th Annual General Meeting (AGM) of the company held in Lagos. At the AGM, Reports and Financial statements of the year ended March 31, 2017 were tabled down while reviewing the company’s performance during the financial year.
On dividend, the company maintained its commitment to the creation of wealth for shareholders in appreciation of their support at all times. To this end, the Board of Directors declared a gross cash dividend of 40 kobo for every 50 kobo share totaling N236 million which will be paid on September 7, 2017 subject to the deduction of appropriate withholding tax.
According to the chairman, Dr Mohammed H. Koguna, the company is happy to have posted a profit from its preceding year inspite 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.”
He noted that 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 300%. 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.”
Red Star Express remained steadfast in its 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.
Nevertheless, the company looked forward to restructuring the company as a Holding Company from its current Group Structure which the company 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.
Red Star Express is a licensee of FedEx (Federal Express), and one of the most reputable companies in the Nigeria logistics industry. Incorporated in October 1992, the company provides a portfolio of logistics solution which includes domestic and international deliveries, freight forwarding, integrated warehousing and haulage services, information and document management, e-Commerce order fulfillment services. Red Star became an Associate of TNT following the acquisition of TNT by FedEx in 2016