Skyway Aviation Handling Company (SAHCO) Plc, a handling company, is owed N6 billion by airlines, according to Chairman Dr. Taiwo Afolabi. Despite this, SAHCO paid a dividend of 30 kobo per share, totaling N406 million, to its shareholders at its 14th Annual General Meeting (AGM) in Lagos.
Afolabi expressed concern that the debt is affecting SAHCO’s operations. To recover the debt, a committee has been set up to liaise with the debtor airlines. Afolabi is confident that the debt will be recovered.
SAHCO’s Chairman, Dr. Taiwo Afolabi, revealed that the company is owed N6 billion by airlines, which is impacting its operations. Despite this challenge, SAHCO paid a dividend of N406 million to its shareholders at its 14th Annual General Meeting (AGM) in Lagos.
Afolabi expressed concern about the debt’s effect on SAHCO’s operations. To address this, the company has established a committee to work with its debtor clients and ensure debt recovery.
SAHCO provides various services to airlines, including passenger and baggage handling, ramp and cargo handling, and warehousing. However, the company is facing a significant debt of N6 billion from its airline clients.
“Our airlines owe us an estimated N6 billion,” Afolabi said. “So, we have to set up a committee purposely for that. We know that the clients like to owe. So, what we are trying to do is not to have allowed it to affect our profitability.”
To address this issue, SAHCO has established a committee to recover the debt. “So, we had to set up a committee that is looking into that and they are doing wonderfully well; they are recovering back. We have a lady that we put in charge of that and she’s doing well. We believe in the next three to six months, we will recover all the debts fully.”
SAHCO announced a dividend payment of 30 kobo per share for the 2023 financial year, totaling N406 million. This represents an increase from the 16.5 kobo per share paid in 2022.
The company’s financial report showed a strong performance, with Profit Before Tax (PBT) rising to N2.68 billion from N469 million in 2022. Profit After Tax (PAT) stood at N1.9 billion, up from N309 million in 2022. Total other comprehensive income was N1.5 billion, compared to N159 million in 2022.
Afolabi discussed the proposed handling rates for domestic airlines, stating that ground handling companies have made significant progress in discussions with authorities and airlines. He assured that the new regime will be implemented soon, emphasizing its inevitability.
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Regarding SAHCO’s diversification, Afolabi said: “We are doing that already… We have diversified into so many sectors; aviation, maritime, financial services, oil and gas.” He highlighted the company’s various initiatives, including SIFAX-SAHCO Travels and helicopter leasing, stressing the importance of sustainability and profitability. “We are doing a lot of things… Sustainability is very key.”
