TheCable

Red Star Express, a leading logistics company, has posted a turnover of N7.3billion in the year under review and declared a dividend of N236m.

The company made the disclosure at its 24th annual general meeting (AGM) in Lagos.

According to a statement by Adekunle Olushola, social media manager of JSP communications, the turnover is 10% higher than the preceding year.

The statement said the profit before tax increased from N572million to N653million, while profit after tax also increased from N334.4million to N426.8million.

It added that the company maintained its commitment to the creation of wealth for shareholders in appreciation of their support at all times.

“To this end, the board of directors declared a gross cash dividend of 40 kobo for every 50 kobo share totaling N236million which will be paid on September 7, 2017, subject to the deduction of appropriate withholding tax,” the statement read.

Mohammed Koguna, chairman, Red Star, said despite the challenges it encountered, he was happy the company posted a profit from its preceding year.

“I am happy to inform you that despite the challenges posed by the environment during the financial year under review, our staff and management worked assiduously to ensure that our company posted a satisfactory result,” Koguna said.

“Lower oil revenues, tight capital controls, increased inflationary pressure and exchange rate volatility combined to make 2016 a challenging year for Nigeria.

“By June 2016, the country had slipped into recession, facing its first full year contraction for almost three decades, with a negative annual GDP growth rate of -1.73 percent compared to about 2.8 percent growth rate recorded in 2015 as reported by the Nigeria Bureau of Statistics (NBS).

“The crisis in the nation’s aviation industry escalated from occasional crashes to perpetual flight delays and cancellations. The acute shortage of aviation fuel also worsened the situation with airfares rising by as much as 3005.

“We are glad our company made profits despite all.”

Red Star was incorporated in October 1992. It provides a portfolio of logistics solution which includes domestic and international deliveries, freight forwarding, integrated warehousing and haulage services, information and document management, e-Commerce order fulfillment services.

It became an associate of TNT following the acquisition of TNT by FedEx in 2016.