Economy
Red Star Express Declares N469m Profit, to Share N324m as Dividend
By Dipo Olowookere
The board of Red Star Express Plc has recommended the payment of N324 million to shareholders of the company as a dividend for the financial year ended March 31, 2020.
The cash reward, amounting to 35 kobo per unit, would be paid to those whose names appear in the register of members as at the close of business on September 18, 2020, a disclosure from the organisation stated.
Thereafter, the register of shareholders will be closed from September 21 to 25, 2020, it added, noting that on October 15, 2020, the dividends will be paid electronically to the beneficiaries, especially those who have completed the e-dividend registration and have mandated the registrar, United Securities Limited, to pay their dividends directly into their bank accounts.
Shareholders who are yet to complete the e-dividend mandate form have been advised to download the form from the registrar’s website and should be completed and submitted to the registrar or their respective banks for processing.
On October 8, 2020, Red Star Express said it will have its Annual General Meeting (AGM) at the Radisson Blu Hotel in Ikeja, Lagos at 11am. At the gathering, the proposed dividend payment will be presented to shareholders for approval.
Meanwhile, Red Star Express has released its financial statement for the year ended March 31, 2020, and from the analysis by Business Post, the company recorded a slight growth across the key performance indices.
For instance, the revenue generated by the firm increased in the accounting year to N10.6 billion from N10.1 billion recorded a year ago and this was mainly from its core business operations, courier services, which contributed N6.3 billion to the total turnover in contrast to N5.9 billion contributed in 2019.
However, the contribution of its mail management services to the total group’s revenue in the period under review dropped to N1.1 billion from N1.4 billion 12 months earlier and the reduction was patched up by the contribution of its freight services, which accounted for N1.3 billion versus N872.1 million in 2019.
It was observed that the contribution of logistics to the turnover in 2020 slightly reduced to N1.5 billion from N1.6 billion, while support services contributed N440.4 million to the turnover, higher than the N286.3 million in the prior fiscal year.
In the year under consideration, the cost of sales rose to N7.9 billion from N7.3 billion, while the gross profit reduced to N2.7 billion from N2.8 billion a year earlier, with administrative costs marginally rising to N2.2 billion from N2.1 billion due to increase in amortisation of intangible assets, bank charges, exchange loss, hotel accommodation and entertainment, power and water, printing and stationery, publicity and promotion, repairs and maintenance, write off of property, plant and equipment as well as security expenses.
According to the results released to the Nigerian Stock Exchange (NSE) on Friday, Red Star Express said it had an other operating income of N272.2 million in 2020 compared with N119.4 million in 2019, while its total operating profit stood at N792.8 million as at March 31, 2020, as against N764.6 million as at March 31, 2019.
The finance income, according to the financial document, improved to N17.8 million from N12.8 million, while the finance cost jumped to N60.5 million from N33.9 million because of the rise in the interest on lease and short term loan.
Business Post reports that the pre-tax profit for the period was N750.1 million, higher than the N743.5 million of the prior year, while the post-tax profit increased to N469.0 million from N466.3 million in 2019. However, the earnings per share (EPS) reduced to 70 kobo in the period under consideration as against 76 kobo of the comparative year, 2019.
By Adedapo Adesanya
Food Concepts Plc neutralized the gains recorded by three securities, returning the NASD Over-the-Counter (OTC) Securities Exchange into the negative territory with a 0.27 per cent loss on Thursday, December 4.
Yesterday, the share price of the parent company of Chicken Republic and PieXpress declined by 34 Kobo to sell at N3.15 per unit compared with the previous day’s N3.49 per unit.
This shrank the market capitalisation of the OTC bourse by N5.72 billion to N2.136 billion from N2.142 trillion and weakened the NASD Unlisted Security Index (NSI) by 9.57 points to 3,571.53 points from 3,581.10 points.
Business Post reports that Central Securities Clearing System (CSCS) Plc went down by 50 Kobo to N38.50 per share from N38.00 per share, FrieslandCampina Wamco Nigeria Plc gained 29 Kobo to sell at N55.79 per unit versus N55.50 per unit, and Geo-Fluids Plc added 5 Kobo to close at N4.60 per share compared with Wednesday’s closing price of N4.55 per share.
Trading data indicated that the volume of securities recorded at the session surged by 6,885.3 per cent to 4.3 million units from the 61,570 units posted a day earlier, the value of securities increased by 10,301.7 per cent to N947.2 million from N3.3 million, and the number of deals went up by 146.7 per cent to 37 deals from the 15 deals achieved in the previous trading session.
At the close of business, Infrastructure Credit Guarantee Company (InfraCredit) Plc was the most traded stock by value on a year-to-date basis with the sale of 5.8 billion units for N16.4 billion, trailed by Okitipupa Plc with 170.4 million units worth N8.0 billion, and Air Liquide Plc with 507.5 million units valued at N4.2 billion.
InfraCredit Plc also finished the session as the most traded stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.2 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.
By Dipo Olowookere
The upward trend witnessed at the Nigerian Exchange (NGX) Limited in recent sessions continued on Thursday as it further improved by 0.10 per cent.
This was despite investor sentiment turning bearish after the local equity market ended with 23 price gainers and 28 price gainers, indicating a negative market breadth index.
UAC Nigeria gained 10.00 per cent to finish at N88.00, Morison Industries appreciated by 9.94 per cent to N3.54, Ecobank rose by 8.53 per cent to N36.90, and Coronation Insurance grew by 8.47 per cent to N2.56.
On the flip side, Ellah Lakes depreciated by 10.00 per cent to N13.14, Eunisell Nigeria also shed 10.00 per cent to finish at N72.90, Transcorp Hotels slipped by 9.95 per cent to N157.50, Omatek shrank by 9.23 per cent to N1.18, and Guinea Insurance dipped by 8.46 per cent to N1.19.
Yesterday, the All-Share Index (ASI) went up by 152.28 points to 145,476.15 points from 145,323.87 points and the market capitalisation chalked up N97 billion to finish at N92.726 trillion compared with the previous day’s N92.629 trillion.
Customs Street was bubbling with activities on Thursday, though the trading volume and value slightly went down, according to data.
A total of 1.9 billion stocks worth N19.2 billion exchanged hands in 23,369 deals during the session versus the N2.3 billion valued at N21.0 billion traded in 21,513 deals a day earlier.
This showed that the number of deals increased by 8.63 per cent, the volume of transactions depleted by 17.39 per cent, and the value of trades decreased by 8.57 per cent.
For another trading day, eTranzact led the activity chart with 1.6 billion units sold for N6.4 billion, Fidelity Bank traded 31.0 million units worth N589.3 million, GTCO exchanged 28.3 million units valued at N2.5 billion, Zenith Bank transacted 27.1 million units for N1.6 billion, and Ecobank traded 21.9 million units worth N744.3 million.
By Adedapo Adesanya
The Naira marginally depreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, December 4 amid renewed forex pressure associated with December.
At the official market yesterday, the Nigerian currency lost 0.01 per cent or 18 Kobo against the Dollar to close at N1,447.83/$1 compared with the previous day’s N1,447.65/$1.
It was not a different scenario with the local currency in the same market segment against the Pound Sterling as it further shed N15.43 to sell for N1,930.97/£1 versus Wednesday’s closing price of N1,925.08/£1 and declined against the Euro by 20 Kobo to finish at N1,688.74/€1 compared with the preceding session’s N1,688.54/€1.
Similarly, the Nigerian Naira lost N5 against the greenback in the black market to quote at N1,465/$1 compared with the previous day’s value of N1,460/$1 but closed flat against the Dollar at the GTBank FX counter at N1,453/$1.
Fluctuations in trading range is expected to continue during the festive season as traders expect the Nigerian currency to be stable, supported by intervention s by to the Central Bank of Nigeria (CBN)in the face of steady dollar demand.
Support is also expected in coming weeks as seasonal activities, particularly the stylised “Detty December” festivities, will see inflows that will give the Naira a boost after it depreciated mildly last month, according to a new report.
“As the festive Detty December season intensifies, inbound travel, tourism spending, and diaspora inflows are expected to provide moderate support for FX liquidity,” analysts at the research unit of FMDA said in its latest monthly report for November.
Traders cited by Reuters expect that the Naira will trade within a band of N1,443-N1,450 next week, buoyed by improved FX interventions by the apex bank.
Meanwhile, the crypto market was down as the US Federal Reserve’s preferred inflation gauge, core PCE, likely rose in September—moving in the wrong direction. However, volatility indices show no signs of major turbulence.
If the actual figure matches estimates, it would mark 55 straight months of inflation above the US central bank’s 2 per cent target. The sticky inflation would strengthen the hawkish policymakers, who are in favour of slower rate cuts.
Ripple (XRP) depreciated by 4.5 per cent to $2.08, Solana (SOL) went down by 3.8 per cent to $138.11, Litecoin (LTC) shrank by 3.1 per cent to $83.23, Dogecoin (DOGE) slid by 2.5 per cent to $0.1463, Cardano (ADA) declined by 2.1 per cent to $0.4368, Bitcoin (BTC) fell by 0.9 per cent to $91,975.45, Binance Coin (BNB) crumbled by 0.9 per cent to $899.41, and Ethereum (ETH) dropped by 0.7 per cent to $3,156.44, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
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