Red Star Express Promises Better Results, Projects N8. 1bn Revenue

Red Star Express Plc, last Thursday projected improved performance for 2018 and beyond, indicating that investors will reap higher returns. The logistics solution company had recorded a revenue of N7.2 billion for the year ended March 31, 2017. It posted a profit after tax of N427 million and paid a dividend of 40 kobo per share.

However, investors should expect better performance and returns as the group has projected a revenue of N8.079 billion and PAT of N618 million. The Group Managing Director/CEO of Redstar Express Plc, Mr. Olusola Obabori made the projection while presenting the company’s facts behind the figures at the Nigerian Stock Exchange (NSE).

According to him, Redstar Express is a logistics solution company with competencies in domestic and international express mail deliveries, mailroom administration, haulage, freight, warehousing services, agro trade services and providers of technology driven solutions.

“Our mission is to provide superior returns to stakeholders through investments in companies that provide logistics related services and the group has successfully maintained an upward trend in dividend payment over the last 5 years, with the highest record of 40 kobo in full year (FY) 2017,” he said.

Speaking on the performance of the company, the GMD said revenue grew by 10 per cent from N6. 6billion in FY 2016 to N7. 2billion in FY 2017 as a result of consistent increase in revenue drive, through increase in customer base, innovation and investment in assets.

“Gross profit rose by 12 per cent from N1. 9billion in FY 2016 to N2. 1billion in FY 2017. PBT increased by 14 per cent from N 572million in FY 2016 to N653 million in FY 2017, this is attributable to our efficient cost management approach in the year under review. As a percentage of revenue, the group has consistently maintained a PBT margin hovering around 8.6 per cent and 10.3 per cent with PAT margin hovering around 5.0 per cent and 6.3 per cent in the last five years which is above industry average of 4-5 per cent,” Obabori said.

He listed the key success factors to stable board and vibrant management; experienced and dedicated workforce; advanced technology, network and spread.

Going forward, he said the company will invest in new ventures to unlock long term value, explore new growth opportunities in pharmaceutical logistics, agro trade, prints and packaging. He added that the company will increase coverage and visibility by establishing more offices in underserved locations and branch office in Niger Republic.