Red Star Express Pays 40 kobo Dividend, Promises to Invest More

The Group Managing Director of Red Star Express Plc, Mr. Sola Obabori has said irrespective of the volatile economy, the company would continually invest in its employees, optimise processes, refine strategies, engage in cost efficiency, focus on new initiatives and increase its market share across the emerging economic sectors.

Obabori stated this at the annual general meeting (AGM) of the company in Lagos last Thursday, stressing that they believe their commitment would give them the thrust they need to achieve maximum benefits for their esteemed shareholders.

According to him, the company is committed to ensuring sustained and steady growth of its operations and return on investments.

“In spite of prevalent challenges, the company posted a turnover of N8.4 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 40kobo for every 50 kobo share, translating to N236 million,” he said.

A look at the company’s results for the year ended March 31, 2018, showed a rise in turnover to N8.4 billion from the N7.3 billion the previous year. The company said the additional revenue growth was as a result of new business initiatives and expansion currently being driven by the present board and management.

Cost of sales increased from N5.111 billion in 2017 to N5.625 billion in 2018. Gross profit stood at N2.782 billion, up from N2.187 billion in 2017.

However, administrative expenses rose by 38 per cent from N1.581 million to N2.178 billion. Similarly, financing cost increased from N21.1 million to N27.6 million. Consequently, profit before tax fell from N653/2 million to N610.6 million, while profit after tax fell from N426.756 million to N347.558 million.

But total assets of the company increased to N5 billion from N4.5 billion, while the shareholders’ fund increased from N2.4 billion to N2.5 billion.

Red Star Express Plc has three subsidiaries – Red Star Freight Limited; Red Star Logistics Limited and Red Star Support Services Limited.

The company is principally engaged in the provision of courier services, mail room management services, outsourcing, freight services, logistics, ware-housing and general haulage.

FedEx has consistently been rated among the top 10 most admired companies in the world over the past 10 years.