One of Nigeria’s leading logistics company, Red Star Express Plc, has consistently posted profits in its annual turnover. For the year ended in March 2019, the company recorded an impressive turnover of N10billion in the year under review which is 20% higher than the preceding year. This was announced at the 26th Annual General Meeting of the company held recently in Lagos.
In the preceding year (2018), the company had recorded a group turnover of N8.4billion. Similarly it recorded a profit of N7.3billion the year before the last, that is, the year 2017, and in the year 2016, the turnover was N6.6billion. This progression reveals a healthy operation in the company.
With the turnover of N10billion achieved, the Board of Directors has recommended to shareholders the payment of N253 million at 43 kobo for every 50 kobo per share, subject to withholding tax.
According to the Chairman, Board of Directors, Mr Suleiman Barau (OON), Red star Express recorded impressive figures amidst challenges in the Nigerian economy. “I am particularly delighted because this is the first time we will be having another Chairman in the last 25 years, after the former chairman, Dr Mohammed Koguna stepped down last year. We thank you for your usual support and pray this will continue now and always. The Nigerian business terrain remains one of the most challenging in Africa. In the year 2018, the business environment was characterized by uncertainties in the political climate, especially because of the anticipated elections into various offices in the country. Also, the economy witnessed a fairly stable exchange rate, inadequate power supply, poor access/high cost of funding and high transportation cost, arising from deplorable road conditions, especially the ones leading to the ports. But in spite of these challenges, I am happy to inform you that the last financial year was successful as the company reported impressive figures across all our performance indicators.”
Projecting for the future, Red Star Express looks forward to exploring new opportunities for revenue generation and expansion. “It is the desire of the Board and Management of Red Star Express to continuously explore new opportunities for revenue generation and expansion, and to invest wisely in appropriate resources. We will continually ensure that a conducive working environment is put in place to encourage the entire staff of the company, express their innate potentials. In all these, our commitment to our shareholders and all stakeholders will be better as we would continually ensure their best interests are given topmost importance always”, Barau emphasized.
The Group Managing Director, Dr. Olusola Peter Obabori, on his part expressed that the firm would ensure despite the social economic and infrastructural challenges the economy of the country goes through, it would work towards enhancing its operations so as to continue meeting its goals of generating more capital whilst providing more wealth to its stakeholders and shareholders.
In the course of the year under review, the company had a change in the management structure resulting to the appointment of Mr Suleiman Barau and Mrs Chioma Sideso as Non-Executive Directors, following the retirement of former Chairman of the Board, Dr Mohammed Koguna, and two other Non-Executive Directors, Mr Isaac Orolugbagbe and Pro Chris Ogbechie.
With 166 offices within Nigeria, Red Star Express remains the flagship, continuing pick-up and delivery of express documents and parcels, domestic and international, and its relationship with FEDEX as its sole licensee in Nigeria. Red star Express subsidiaries remain Red Star Freight, Red Star Logistics, and Red Star Support Services.
