The Managing Director/Chief Executive Officer, SAHCO Plc, Mr Agboarumi Basil, revealed this at the company’s Fact Behind the Offer session at the Nigerian Stock Exchange in Lagos.
Basil, who was represented by the Executive Director, Sales and Marketing, SAHCO Plc, Mr Olaniyi Adigun, said the company believed the expansion would bring about liquidity.
He stated that the company would expand its operations into the hospitality and logistics industry to bring about constant revenue throughout the year.
Basil noted that the company’s revenue had grown over the years, but the profit after tax had been fluctuating.
He added that the company had a future strategy to create long-term shareholder value through the profitable operation and expansion of its business beyond Nigeria and into other West African markets.
He said, “Our vision is to become the leading provider of passenger, ramp and cargo handling services in the West Africa sub-region. Our core investor paid N5.2bn for the purchase of new ground service equipment to bring about improved operations and facilities.
“The aviation handling industry is duopoly, and as such, does not grow as expected. Hence, we have to grow our revenue base so as to increase our revenue.”
The Head of Finance, SAHCO Plc, Mr Rotimi Omotoso, said the company had grown its cargo revenue by over 100 per cent, which he said was evident in its financial statements.
He noted that the company’s revenue was mainly cargo-based, which made the company suffer losses in February every year.
Omotoso said, “Our cargo services are dependent on China and China closes for five weeks in February every year as that is their new year.
“The need to diversify our revenue base cannot be overemphasised as we cannot continue to make losses every year.”
He added that the company currently owned about 39.5 per cent of the market share of the aviation handling industry as its customer base grew from six to 24 airlines.
Omotoso said the company sought to further increase its market share by improving its service delivery and efficiency.