Amid economic challenges, SAHCO posts N16.5bn revenue growth

…Reports 39.13% increase

By Seun Ibiyemi

Despite major economic challenges in Q1 2023, Skyway Aviation Handling Company announced N16.5 billion in revenue, evidencing Skyway Aviation revenue growth. This significant achievement has boosted the company’s gross profit to N8.2 billion, up from N11.1 billion revenue in 2022.

Comparatively, this performance marks a 39.13 percent increase in revenue from 2022, when the gross profit was N4.3 billion. Chairman of Sifax Group, Dr. Taiwo Afolabi, owners of SAHCO, shared this impressive financial rundown at the company’s Annual General Meeting today.

He also revealed that the company’s asset base now stands at N34 billion, a 15.19 percent rise from N29.2 billion in 2022.

Moreover, SAHCO shareholders passed numerous resolutions, including the approval for the Board of Directors to pay a recommended 30 kobo dividend per share of 1,353,580,000 ordinary shares, amounting to N406,074,000. This exceeds the 16.5 kobo per share of N223,340,700 paid in 2022. Dr. Afolabi emphasised SAHCO’s robust financial performance, showcasing its inclusive strategy for sustained growth and profitability amid economic challenges.

Encouraging the board, stakeholders offered various advice on debt recovery, improved staff remuneration, and business diversification to strengthen the company. Reacting to journalists on the sidelines, Dr. Afolabi disclosed that airlines’ debt with SAHCO stood at an estimated N6 billion, with a dedicated team set up to recover these funds.

“Our airlines’ clients’ debts are roughly estimated at N6 billion. We have set up a committee for that purpose. Clients tend to owe, but we are not allowing it to affect our profitability. We just have to set up a committee that is looking into that, and they are doing wonderfully well. Now, they are recovering. We believe within a short period, within 3-6 months, we will recover all the debts outside,” said Dr. Afolabi.

Meanwhile, Dr. Afolabi highlighted that the company is diversifying with new ventures such as Sifax SAHCO Travels and a helicopter leasing company.

“We are diversifying and looking at other ventures that we believe will add value. As I speak, we are exploring helicopter leasing to support and grow the company’s profitability. We are doing a lot, so it’s not something we achieve in a day. Our parent company is diversified into many sectors like aviation, maritime, financial services, and oil and gas. Our main goal is to increase and sustain profitability,” he added.

In conclusion, SAHCO’s financial resilience and strategic diversification highlight its commitment to sustained growth and profitability despite economic headwinds.

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