Home Business Red Star Express Posts N6.6bn Turnover

Red Star Express Posts N6.6bn Turnover

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A leading logistics Company, Red Star Express Plc has announced a total sum of N6.6 billion turnover for the financial year ended March 31, 2016 and a profit after tax of N334.4 million. This was stated at the 23rdAnnual General Meeting (AGM) of the company held recently.

Speaking at the AGM, the Chairman, Dr. Mohammed H. Koguna noted that in spite of the challenges of decline in oil prices, immense pressure on the Naira, rising inflation, volatility and uncertainty in the foreign exchange market, regular flight cancellations and upsurge in general cost of living, the staff and management worked assiduously to ensure that the company achieved a satisfactory result.

“In spite of the challenges outlined, our company posted a turnover of N6.6 billion in the year under review. Our company has maintained its commitment in the creation of wealth for shareholders. To this end, the Board of Directors is recommending a gross cash dividend of 35kobo for every 50 kobo share translating to N206.3million. We demonstrated our commitment during the financial year to the Red Star Foundation policy by awarding 20 additional scholarship to secondary school students from the Eastern, Western and Northern part of Nigeria”, he reiterated.

With a view to optimizing emerging opportunities in the domestic and international business environment, there have also been changes in the company’s management structure.

The former Executive Director, Mr Olumuyiwa Olumekun, and Group Managing Director/CEO, Mr. Sule Umar Bichi, both had their contracts expired on August 31st 2015. After one year of extension for Mr. Bichi to facilitate smooth transition to new leadership for the company, the company made new appointments which took effect from April 1, 2016.

The Board appointed three (3) Executive Directors, and four (4) Divisional Managing Directors.

Mr. Sola Obabori assumed the position of the Deputy Managing Director (and will take over from the out-going Group Managing Director from September 1), Mr. Victor Ukwat assumed the position of Executive Director, Sales and Marketing while Mr. Auwalu Babura assumed the position of Executive Director Finance and Admin.

Other appointments were Mr. Charles Ejekam who became the Divisional Managing Director of Red Star Express, Mr. Ocholi Etu became the Divisional Managing Director of Red Star Logistics, Mr. Enoma Ojo assumed the position of Divisional Managing Director, Red Star Support Services and Mr. Tonye Preghafi assumed the position of the Divisional Managing Director of Red Star Freight.

Sir Sunny Nwosu, Representing Obuchi Limited in his statement, commended the out-going management for building a positive financial statement which the incoming management should take note of. In his words “To whom much is given, much is expected.”

Speaking on these appointments, Dr. Koguna thanked the out-going staff for their contributions towards the growth and success of the company, while also wishing the new management the best in their performance in the years ahead.

On future outlook, he pointed out that the Company is committed to ensuring sustained and steady growth of its operations and returns on investments.

“Regardless of the volatile economy, we will continually invest in our resilient employees, optimize our processes, refine our strategies, engage in cost efficiency, focus on new initiatives and increase our market share across the emerging economic sectors. We believe our commitment will give us the thrust we need to achieve maximum benefits for our esteemed shareholders”, he added.

Red Star Express Plc has four subsidiaries – Red Star Freight Limited; Red Star Logistics Limited and Red Star Support Services Limited, as well as Red Star Express, a licensee of FedEx, world leading air express company with over 650 aircrafts and more than 270 delivery destinations globally. FedEx has consistently been rated among the top 10 most admired companies in the world over the past 10 years.