- As Major blue chips record growth on NSE
Med-View Airline Plc shareholders on Wednesday lauded the board and management for listing on the Nigerian Stock Exchange (NSE) in spite of challenging operating environment.
The shareholders stated this at the company’s first Annual General Meeting (AGM) in Lagos.
They also commended the management for 3k dividend declared for the financial year ended Dec. 31, 2016 and authorised the raising of additional capital via debt instruments, preference shares or ordinary shares.
Mr Nona Awo, a shareholder, lauded the company for seeking quotation at the most difficult time in the Nigerian Stock market.
Awo said that the company took the bold step to list its shares on the NSE to allow Nigerians to be part owners in spite of the market situation.
He also said that the shareholders were very pleased with the company for getting dividend in less than four months of listing.
Awo, however, urged the company to ensure timeliness of its proposed capital raising exercise for maximum subscription.
Mr Boniface Okezie, National Cordinator, Progressive Shareholders Association of Nigeria (PSAN), called on the company to protect the interest of the shareholders and ensure strict compliance to good corporate governance.
Okezie said that airline companies that were listed on the NSE in the past had not been friendly to the Nigerian shareholders.
He stated that Med-View must be different in order to boost shareholders confidence, noting that the company needed fresh funds to execute bigger businesses.
Mr Patrick Adidua, another shareholder, said that the company achieved a giant stride by listing the airline on the exchange.
Adidua said that shareholders reposed their trust on the management by buying into the company in spite of past experiences.
He urged the management not to disappoint the shareholders, noting that, they would support the company to achieved the desired growth and development.
Alhaji Muneer Bankole, Med-View, Chief Executive Officer, said that the company would consolidate on its past achievements in 2017, especially in Hajj operations.
Bankole said that the company would take advantage of the projected growth the Nigerian economy would offer and deliver value to its stakeholders.
He stated that the company was well positioned to overcome the challenges of the business environment with its enhanced human capital and vast experience.
The chief executive officer said that the company was making arrangements to bring in additional aircraft and commence the Dubai route to maximise profit.
Bankole said that the board would continue to reposition the company to take advantage of all opportunities in the aviation industry.
“We are confident that with the right support of all stakeholders, our company will perform better in 2017,” he said.
Bankole said that access to funds was a major key factor to the survival of any airline, as the major funds required were in foreign currency.
He said that scarcity of foreign exchange, devaluation of Naira, high cost of maintenance, low patronage and multiple taxes affected the company adversely in 2016.
The company during the period under review posted a revenue of N25.96 billion against N14.16 billion achieved in the previous year.
Its profit after tax stood at N772.85 million compared with N728.52 million in the corresponding period of 2015.
Also, the company’s total assets rose to N15.43 billion from N12.01 billion 2015, while shareholders’ funds appreciated to N6.42 billion from N4.97 billion in 2015.
The company on Jan. 31 joined the league of quoted companies with the listing of 9.75 billion shares by introduction at N1.50 per share.
In the meantime, Major blue chips have recorded price appreciation on the Nigerian Stock Exchange (NSE) on Wednesday, lifting the market indices by 1.05 per cent.
The market indicators sustained a positive growth for the second consecutive day.
An analysis of the price movement table indicated that Nestle recorded the highest gain, leading the gainers’ chart by N24.94 to close at N825.05 per share.
It was trailed by Nigerian Breweries with a gain of N3 to close at N248, while Guaranty Trust Bank gained N1.20 to close at N30.70 per share.
Oando garnered 77k to close at N8.55, while Glaxosmithkline increased by 73k to close at N15.43 per share.
Consequently, the market capitalisation inched N100 billion or 1.05 per cent to close at N9.644 trillion, against the N9.544 trillion achieved on Tuesday.
Also, the All-Share Index improved by 290.77 points or 1.05 per cent to close at 27,900.44, as against the 27,609.67 posted at the close of business on Tuesday.
On the other hand, Stanbic IBTC topped the losers’ table with a loss of 50k, to close at N26 per share.
Union Bank of Nigeria followed with a loss of 15k to close at N5, and Zenith International Bank shed 10k to close at N17.10 per share.
International Breweries also lost 10k to close at N20.90, while United Bank for Africa declined by 10k to close at N6.50 per share.
However, the volume of shares transacted dropped by 34.74 per cent, with a total of 371.46 million shares valued at N3.49 billion exchanged in 3,910 deals.
This is against the 569.18 million shares worth N6.68 billion traded in 4,632 deals on Tuesday.
The banking stocks were the toast of investors, with Access Bank emerging the most active in volume terms, accounting for 96.01 million shares valued at N695.34 million.
Guaranty Trust Bank followed with 31.34 million shares worth N945.27 million and Law, Union and Rock Insurance traded 30.20 million valued at N24.17 million.
United Bank for Africa exchanged 25.67 million shares worth N166.69 million, while FBN Holdings sold 19.55 million shares valued at N77.18 million.