Red Star Express Records Impressive Growth, Declares Dividends

By Israel Bolaji

Foremost logistics firm, Red Star Express Plc has announced that it recorded 21 per cent increase in business revenue at the end of its current business year, an impressive result compared to its last financial year.

Speaking at its 21st Annual General Meeting (AGM) held at the Welcome Centre Hotels, International Airport Road, Lagos on Thursday, the Chairman of Red Star Express Plc, Dr. Mohammed Koguna, said the company recorded a turnover of N6.4 billion in its last financial year as against N5.3bn achieved in the previous year. He noted that apart from the growth recorded in revenue, the company's profit after tax also grew by 33 per cent from N331.77m to N403.63m in the year under review.

Koguna attributed the growth in profit and success of the company to the bravery of its workers and management.

According to him, their efforts and the support of the shareholders helped the company to remain in business in spite of the economic challenges the company encounter during the financial year.

The chairman explained that although the economic challenges in the country impacted the company slightly, it was able to achieve growth.

Koguna said, “The economic and business environment continues to be quite challenging for most companies including Red Star Express Plc. The increasing rate of insecurity in various parts of the country, particularly the North-East including Abuja, which happens to be one of the company's high generating territory, slightly impacted our business.”

He, however, stressed that Nigeria's economy remained one of the fastest growing economies in the world regardless of the rising inflation rate, cost of funds, inability of the privatised power sector to increase output as envisaged and decaying infrastructure.

At the meeting, the Board of Directors recommended a total of N206 million dividends payment to the shareholders and it was endorsed by all. The 35 kobo dividends per 50 kobo share, will be posted to all shareholders.

In his own remarks, the Managing Director, Mr. Sule Umar Bichi added that the company has been consistently paying dividends to shareholders in the last six years when its shares were listed on the Nigerian Stock Exchange.

He further added that the company was being positioned to key into the increasing opportunities in the economy as it embraces cutting edge technology and motivated workforce in its pursuit to continually delight customers.

Also at the meeting, Red Star non-executive directors, Mazi Sonny Alison and Olayemi Peters were re-elected while the appointments of two new non-executive directors, Mr. Sulaiman Lawan Koguna and Sir Chris Ike Ogbechie were approved.

Shareholders of the company at the meeting also applauded the management of the company and urged it to do more.

The shareholders commended RedStar for an excellent performance and encouraged the board to scale up its efforts on Corporate Social Responsibility (CSR) to impact positively on Nigerians particularly its host communities.

Red Star Express is a licensee of FedEx. The company was incorporated in Nigeria under the companies and Allied Matters Act on July 10,1992 and commenced business on October 12, 1992. It became public a company on July 9, 2007, and listed its shares on the NSE on November 14, 2007.