Shareholders of Skyway Aviation Handling Company (SAHCOL) Plc yesterday announced its unaudited financial results for the half year (H1) ended June 30, 2020, showing a decline in the revenue and profits, indicating the challenges encountered in the review period.
SAHCO recorded a revenue of N3.092 billion, showing a decline of 11.9 per cent from N3.511 billion posted in the corresponding period of 2019. Gross profit stood at N1.219 billion as against N1.510 billion.
Administrative expenses were reduced from N1.153 billion to N1.108 billion, making the company to close the H1 with a profit before tax of N143.491 million. However, profit after tax dipped by 93 per cent from N171.503 million to N11.428 million.
Market analysts said the fall in bottomline may also lead to a decline in returns to investors at the end of the year, unless the performance improves in the second half of the year, which is very unlikely given the Covid -19 pandemic.
The company had last year rewarded its shareholders with a dividend of 16.5 kobo per share for 2019 financial year. The company had declared the dividend in 2019 after it recovered from a loss of N696. 99 million to a net profit of N446.53 million.
Chairman of SAHCOL, Dr. Taiwo Afolabi, told shareholders recently that the company was developing new business models toward ushering in efficient and speedy service delivery that would change the financials status of the company by the end of the year
He promised the shareholders enhanced return on their investment in the current financial year.
On his part, Managing Director of SAHCOL, Basil Agboarumi, said management intended to reposition SAHCOL as the best ground handling company in West Africa by acquiring more client airlines using the leverage of being the preferred handling partner of British Airways and other global carriers already in the company’s fold.