August 01, 2019 / 03:32PM / NAHCO
The Nigerian Aviation Handling Company (NAHCO) Plc has assured shareholders that the ongoing implementation of a strategic five-year growth plan will lead to an agile and profitable company.
Speaking at the annual general meeting in Kano, directors of NAHCO outlined strategic growth objectives, key implementation drivers, challenges and transformational initiatives being taken to sustain the company as the leading ground handling organisation in Nigeria.
Directors of the company at its first AGM outlined the details of a new five-year strategy and transformation plan that covers between 2019 and 2023, which is expected to drive growth, service improvement, improved profitability and also ensure that NAHCO maintains its leadership position, despite increasing competition in the ground handling business.
The assurance came as shareholders approved the distribution of N406 million as cash dividend for the 2018 business year, representing a dividend per share of 25 kobo.
Chairman, Nigerian Aviation Handling Company (NAHCO) Plc, Dr Seinde Fadeni, said the new board and management have reorganized the company’s group structure and operations and have started implementing key initiatives to address cost structure, realign products and interface with customers and other stakeholders with a view to ensuring optimal performance in the years ahead.
He said the company had started modernization of its warehouses to position itself for global changes in cargo handling and management, noting that NAHCO is currently investing in warehouse refurbishment, facility and equipment upgrade to ensure leadership in all areas of air cargo within the West and Central African region.
He pointed out that while increased costs of operations and administrative expenses impacted the company’s performance in 2018, the new management has been addressing these cost centres to ensure improved efficiency and competitive returns.
“I believe that our company will grow more rapidly in the coming years in light of the measures and innovations being implemented,” Fadeni said.
According to him, the company’s five-year strategic plan was anchored on five strategic pillars of operational excellence, digital transformation, people and culture transformation, organic and inorganic growth and diversification. These pillars would be driven by three main enablers, including adequate funding and capitalization, financial grip and enhanced risk management.
He explained that the company’s strategy for growth entails maximizing parent company and subsidiary companies’ opportunities and capacity utilization while taking advantage of market trends and the group’s dominant market position.
“We are restructuring our strategic business units (SBU) and subsidiary companies in such a way that from now on, every member of the NAHCO Group contributes more to the overall profitability of the group. We have set a revenue target that is ambitious but achievable. We expect to grow our revenues by a factor of four times 2018 figure and achieve this over the next five years. We have resolved to maximize the revenue opportunities inherent in the synergies of our group,” Fadeni said.
He pointed out that the company is developing sustainable business plans for two of its subsidiaries-NAHCO Free Zone (NFZ) and Mainland Cargo Options (MCO) while exploring the best strategy to ensure long –term viability of NAHCO Energy Power and Infrastructure (EPI).
“The company’s outlook for 2019 is positive, with the unwavering commitment of the board, management and staff, we are fully committed to perform better and deliver more value to you, our esteemed shareholders. We will continue to implement the strategic direction we have set for the transformation of NAHCO,” Fadeni said.
He noted that one of the critical elements of the company’s growth strategy is the asset renewal strategy and policy for all its plant machinery and equipment including ground support equipment (GSE) and cargo management equipment, which will help to improve service delivery and efficiency while reducing maintenance costs.
He said the company had commenced the purchase of necessary machinery and equipment from international OEMs and reputable vendors with some of the equipment already received and commissioned into service.
According to him, the company has also commenced the upgrade of its infrastructure, facilities and equipment starting from the Lagos Warehouse Complex. Early 2019, it added a cold room facility to its Kano warehouse. It has also committed material investment and upgrades to its strategic business units in Abuja and Lagos.
The Group Managing Director, Nigerian Aviation Handling Company (NAHCO) Plc, Mrs. Olatokunbo Fagbemi, said the new management has continued to make steady progress in driving the company’s new vision “to be the leading service provider, continuously innovating and reshaping our chosen markets.” Fagbemi assumed office in December 2018.
She explained that the “New NAHCO” is being built on core values of safety, integrity, innovation, reliability, respect and empathy noting that the “New NAHCO” is to ensure there is regular communication, transparency in decision making and sincerity in governance.
“We are building a culture of safety, security, innovation, integrity and ownership. Our “New NAHCO“ is building a cohesive management team and an efficient workforce. Our “New NAHCO” is harnessing the strengths and opportunities of the group structure to drive growth and profit. Our “New NAHCO“ is focused on retaining existing customers and on-boarding new customers. Our “New NAHCO” is focused on the strong balance sheet, profit and loss and enhanced free cash flow. Our “New NAHCO” is focused on consistently delivering value to all stakeholders,” Fagbemi said.
She noted that NAHCO had continued to maintain internationally recognized standards of operation as the company earlier in the year achieved IATA Safety Audit for Ground Operations (ISAGO) certification in three major airports of Lagos, Abuja and Kano, making NAHCO the only ground handler in Nigeria to achieve this.
She added that the company also had achieved the Third Country EU Regulated Agent (RA3) revalidation of its operations in the major airports of Lagos, Abuja, Port Harcourt and Kano by the European Union.
“NAHCO has come out successful in all the airline's audits we have done this year. We have also received commendation for the new measures we have put in place to ensure stricter security and compliance to international standards at our facilities. Also, our staff have received commendations from several airlines,” Fagbemi said.
She assured that in the coming months, the company would increasingly become an efficient organisation that is fit and able to deliver services at optimum prices to the delight of its stakeholders.