Friday, November 15, 2019 / 03:49 PM / By Proshare Research / Header Image Credit: Premium Times
Recent media reports suggest that there are plans
by the Nigerian Civil Aviation Authority (NCAA) to withdraw the Air Operating
Certificate (AOC) of Medview
Airlines Plc over the prolonged shutdown of scheduled operations. The shut
down of scheduled operation three months ago is linked to the maintenance of
its operating aircraft at a maintenance facility.
A cursory review of the Q3 2019 results of the company reflected that its gross revenue dropped by -87.2% from N7.89bn in Q3 2018 to N1.01bn in Q3 2019 while it recorded Loss After Tax (LAT) of N1.04bn in Q3 2018 as against N3.13bn loss in Q3 2019. The imminent certificate withdrawal by NCAA suggests that the firm's revenue would be adversely affected in 2019.
YTD, Medview's share price has dropped by -10.00% as against -14.60 YTD loss recorded by the NSEASI, which implies that the share price of Medview outperformed the NSEASI YTD.
That said, the analysis on the share price of Medview, with its listing price, reflected that it has moved up by +20.00%.
Its share price has remained static in recent times. The share
price is currently trading at N1.80k as at the close of trading on November 14,
2019, a price it attained on March 28th, 2019, representing about
eight (8) months of no price movement.