- Firm targets N35b profit in next five years
Shareholders of Med-View Airline Plc have bemoaned the alleged excessive charges slammed on airline operators by government agencies in the aviation industry, calling for an urgent privatisation of the agencies to reduce charges and boost companies’ profitability.
The shareholders’, who unanimously approved the company’s 3 kobo dividend at the maiden yearly general meeting of the company, in Lagos on Wednesday, maintained that such charges are impacting negatively on the firm’s bottom-line, thereby causing untold hardship for shareholders.
Specifically, an independent shareholder, Patrick Adegun commended the company for the dividend declared at its maiden AGM, as well as appointing African Prudential Registrars (APR) as the registrar for the company.
He however flayed agencies charges on the airline operator, noting that such charges are disincentive to investments.
Furthermore, Adegun cited ADC and Albarika airlines that delisted from the Exchange after completing the listing processes, urging the management to do everything within its powers to ensure the sustainability of the company.
The President, Progressive Shareholders Association of Nigeria, Boniface Okezie also applauded the firm for increasing shareholders’ value through dividend payout at the first outing.
He stressed the need for the company to replicate the success made on hajj pilgrimage to the Christian counterpart on their pilgrimage to Jerusalem to enhance profitability.
“Jeddah is not too far from Jerusalem. What are you doing to connect the Christian going for pilgrimage to Jerusalem?
Reviewing its performance, the Chief Executive Officer of the company, Alhaji Muneer Bankole explained that the company posted a revenue of N26 billion, higher than N14 billion achieved in the corresponding period in 2015.
Similarly, profit before tax, according to him also rose from 830 million in 2015 to N840 million during the period under review while profit after tax increased from N110 million to N1 billion in 2016.
According to him, the company targeting N35 billion profit in the next five years.
“From the beginning of this airline scheduled operations in 2012 we started with two lease aircraft and we posted a turnover of 3.6 billion and as at that time, our future plan was how do we look at ourselves to acquire asset vis avis aircraft, landed properties to consolidate the future of this airline today I am proud to tell you that the four aircrafts we are flying belongs to the shareholder the aircraft is owned 100 per cent by med view.
“From N3.6 billion in 2012, today, turnover is 45.7 billion and projections for the next five years, is N35 billion profitability, the shoreline may go further because of the consolidation in the hajj operations which is starting in the next one month.
“ We plan to grow on segmental basis, we went to domestic operations, we solidify it, come the next one month, we have the 777,200 and 737 which would join this fleet, it is on lease and our drive is to accommodate our future plan to Dubai and our continue operation to expand into other regions.”