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Tag: Red Star Express

  • Red Star Express grows revenue to N16.1b

    Red Star Express grows revenue to N16.1b

    Indigenous courier and logistics company : Red Star Express Plc has concluded plans to explore business opportunities within the domestic and regional markets as its revenue jumps to over N16.1 billion with the  declaration of profit running into 10 per cent in the just concluded financial year.

    This is as the company said it is fine tuning strategies to diversify its revenue streams and mitigate risks associated with the current economic volatility.

    Its Group Managing Director / Chief Executive Officer, Auwalu Badamasi Babura, disclosed this in Lagos yesterday during the 31st, Annual General Meeting of the courier/ logistics company.

    He said the company posted a sterling performance despite the runaway inflation and tough business climate.

    Reviewing the performance and achievements of the company’s financial year, which ended March31, 2024, Babura said it demonstrated resilience and growth.

    He said : “ In this challenging environment, Red Star Express has demonstrated resilience and growth. Our revenue for the financial year reached N16.1 billion, a substantial increase from N13.8 billion in the previous year, reflecting a growth of 16.1 per cent. Our Profit After Tax (PAT) rose to N343 million from N313 million, marking a 9.6 percent  increase.

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    Additionally, Earnings per Share (EPS) improved to 36 kobo per 50 kobo share, up 33 kobo in the previous year. These results are a testament to our successful expansion efforts and robust operational strategies.”

    Babura listed the challenges that confronted its operations to include : inflation jump, and soaring fuel cost.

    “The financial year 2023/2024 presented our company with a challenging operating environment, influenced by several significant economic factors in Nigeria.

    “These included the ongoing impact of global economic instability, the significant increase in inflation, and the continued volatility in fuel prices. According to the National Bureau of Statistics (NBS), the inflation rate surged to 33.20 per cent  in March 2024, compared to 22.04 per cent  during the same period in the previous year.

    “The average retail price paid by consumers for Premium Motor Spirit (Petrol) in March 2024 was N696.79, indicating a 163.65 per cent  increase compared to March 2023. Additionally, the average retail price of Automotive Gas Oil (Diesel) increased by 59.51 per cent on a year-on-year basis.

    “These increases significantly impacted the cost of interstate haulage and overall operating expenses. Despite these challenges, Nigeria’s GDP grew by 2.98 per cent during the year, reflecting moderate economic growth,” he said.

    Babura said the myriad of challenges experienced in the course of the year, compelled the management team to adapt strategically in order to keep afloat.

    Going forward, he said the company will continue to focus on its investment in people, innovation as well as technology.

    He said: “ This financial year has been a period of significant achievements for Red Star Express and its subsidiaries. As part of the giant stride we recorded in the financial year, we secured a certificate of registration as agents of foreign airlines, and we also obtained a recruiter’s licence, further strengthening our service portfolios.

    “These advancements have enhanced our capacity to expand our service offerings. Our strategic partnership with FedEx continues to strengthen our international presence. Additionally, the operational launch of our new warehouse facility at Murtala Mohammed Airport in Lagos marks a major milestone in our infrastructure expansion.

    “We have also successfully extended our e-commerce logistics services to new regions, further improving our market reach and operational efficiency.

    “Our strategic focus will continue to emphasize enhancing brand management and optimizing logistics operations. We are committed to scaling our e-commerce logistics capabilities and integrating technology-driven solutions to better serve our customers.

    “We will explore new partnerships and business opportunities within domestic and regional markets to diversify our revenue streams and mitigate risks associated with economic volatility.”

    On its future prospects and initiatives, Babura said the company will continue to leverage technology as it concludes plans to introduce a new technology-driven e-logistics service, aiming to revolutionize our logistics operations and enhance our service delivery.

    He said: “As we look ahead to the new financial year, we are excited about several strategic initiatives that position us for sustainable growth and enhanced service delivery. These include the adoption of cutting-edge e-logistics technology to streamline our operations and improve efficiency.

    “Rapidly expand our service offerings so our consumers get greater choice and value. Explore more strategic growth opportunities, massive investment  in talent and technology, build on warehousing capabilities as well as strengthen  our domestic and international partnerships.

    “We aim to improve operational efficiency, expand our market reach, and provide innovative solutions that meet the evolving needs of our customers.”

  • Exchange downgrades Red Star Express to low-priced stock

    The Nigerian Stock Exchange (NSE) has reclassified Red Star Express Plc from a medium-priced stock to low-priced stock, underlining the decline in the share price of the logistics company.

    The Exchange said the review of Red Star Express stock price trade activity over the most recent six- month period provided the basis for reclassifying the security from the medium priced stock group to the low priced stock group.

    Red Star Express’ stock price dropped below the N5 threshold on September 17, 2018 and traded below N5 up till close of business on January 17, 2019. This indicated that Red Star Express stock price has traded below N5 in four out of the last six months. The reclassification took effect from January 28, 2019.

    As a low-priced stock, stockbrokers would need 100,000 shares to move the share price of Red Star Express as against 50,000 shares needed for price change as a medium-priced stock. Also, the tick size for the company will change from five kobo to one kobo, implying that the share price will rise slowly going forward.

    The NSE classifies quoted companies into three categories-high-priced, medium-priced and low-priced stocks, based on their market price.

    The high-priced stocks consist large-cap equities that are priced at N100 per share or above for at least, four of the last six trading months, or new security listings that are priced at N100 or above at the time of listing on the Exchange.

    The medium-priced stocks consist of medium-priced equities that are priced at N5 per share or above, but less than N100 per share for at least, four of the last six months, or new security listings that are priced at N5 per share or above but less than N100 per share at the time of listing on the Exchange.

    The low-priced stocks, where majority of listed companies fall, consist of equities that are priced at one kobo per share or above but below N5 per share for at least four of the last six months, or new security listings that are priced at one kobo per share or above but below N5 per share at the time of listing on the Exchange.

    Stocks under high-priced group shall have price change with minimum of 10,000 units; stocks under medium-priced group shall have price movement with a minimum of 50,000 units while stocks under low-priced group shall have price change with minimum volume of 100,000 units.

     

  • Baru chairs Red Star Express

    Former Deputy Governor of Central Bank of Nigeria (CBN), Alhaji Suleiman Baru, has been appointed as the chairman of the board of directors of Red Star Express Plc. Baru succeeded Dr Mohammed Koguna, who retired after leading the board for 26 years.

    At a brief handover ceremony, Baru reiterated his commitment to take the company forward.

    He commended the Koguna, describing him as an elder statesman whose unique ways of doing things had impacted on the fortunes of companies he chaired, including Red Star Express.

    Group Managing Director, Red Star Express Plc, Mr Sola Obabori, said the company believed in the ability of the new chairman to further improve its performance given Baru’s wealth of experience.

    He noted that under Koguna’s leadership, the company grew from the scratch and has a turnover that is more than N8 billion now.

    “We have continually had an increase profit recorded each year preceding the penultimate. We hope to have better times ahead while giving the best to our customers,” Obabori.

     

     

     

  • Red Star Express reiterates commitment to value creation

    The management of Red Star Express Plc has expressed its commitment to creating wealth for shareholders.

    Its board of directors recently announced payment of N236 million to shareholders of the company as cash dividend for the immediate past year. Shareholders will receive a dividend per share of 40 kobo.

    Key extracts of the audited report and accounts of Red Star Express for the year ended March 31, 2018 showed decline in the bottom-line. Group turnover rose from N7.3 billion in 2017 to N8.41 billion in 2018. Profit before tax however, declined from N653.2 million in 2017 to N610.59 million in 2018. After taxes, net profit dropped from N426.76 million to N347.56 million.

    Group Managing Director, Red Star Express Plc, Mr. Sola Obabori, said the company is committed to ensuring sustained and steady growth of its operations and return on investments.

    According to him, regardless of the volatile economy, the company will continually invest in its resilient employees, optimise its processes, refine its strategies, engage in cost efficiency, focus on new initiatives and increase its market share across the emerging economic sectors.

     

     

  • Red Star Express declares N236m dividend

    Red Star Express Board of Directors at the weekend announced that it has recommended payment of N236 million to shareholders of the company as cash dividend for the immediate past year. The company had distributed same amount in the previous year.

    Shareholders will receive a dividend per share of 40 kobo, implying a dividend yield of 6.7 per cent on the company’s closing share price of N6. Red Star Express’ share price rose by 5.0 kobo or 0.84 per cent to N6 at the weekend.

    Key extracts of the audited report and accounts of Red Star Express for the year ended March 31, 2018 showed decline in the bottom-line. Group turnover rose from N7.3 billion in 2017 to N8.41 billion in 2018. Profit before tax, however, declined from N653.2 million in 2017 to N610.59 million in 2018. After taxes, net profit dropped from N426.76 million to N347.56 million.

    Red Star Express had secured shareholders’ approval to transit to holding company and raise additional capital. The new capital raising could be raised through debt issue, equity issue or a combination of both equity and debt.

    The Group include three subsidiaries- Red Star Freight Limited, Red Star Logistics Limited and Red Star Support Services Limited. The group principally engages in courier services, mail management services, freight services, logistics, warehousing and general haulage.

    Its Chairman, Dr Mohammed Koguna, has said the company plans to change its operating structure from group to holding company to reflect its business expansion and other emerging opportunities.

    According to him, the change to holding company is necessitated by the various initiatives the company seeks to explore and the need to have a more structured accounting system.

    “These are part of the company’s expansion plans aimed at taking full advantage of business opportunities,” Koguna said.

    Koguna, who owns the largest equity in the company, said the group has identified some growth platforms that will become full subsidiaries in the years ahead.

    “We will continue to be innovative so as to ensure the steady growth of the company, which would bring about sustained progression in terms of returns on investments. Our watchword in the management of both our human and capital resources will be to focus on cost efficiency, and concentrate on opening new horizons that will ensure we remain the market leader in our industry,” Koguna said.

  • Red Star Express mulls new medium-term strategy

    The board and management of Red Star Express Plc are in the process of developing a new medium-term corporate strategy that will outline key basic corporate activities, objectives and expected results over the next five years.

    Chairman, Red Star Express Plc, Dr. Mohammed Koguna, who hinted about the new corporate plan, said the five-year medium term corporate growth plan would significantly drive the growth of the company.

    “We are very confident that our efforts and commitments will result to value additions for all stakeholders,” Koguna, who is also the largest single shareholder of the courier and logistics company, said.

    Red Star struggled between slow top-line and increasing operating expenses to end the immediate past year with modest decline in the bottom-line. Key extracts of the audited report and accounts for the year ended March 31, 2015 showed that turnover rose marginally by four per cent from N6.42 billion to N6.66 billion.  Profit before tax inched up by one per cent from N603.89 million to N611.06 million. Profit after tax however declined by five per cent from N403.63 million in 2014 to N383.64 million in 2015. While earnings per share dropped from 68 kobo to 65 kobo, the company retained its dividend per share of 35 kobo.

    Koguna said the performance of the company was affected by significant drop in government revenue and distortion in foreign exchange market, which led to depreciation in Naira, resulted in higher cost for the company’s international operations.

    He added that reduction in lending capacity of the banking sector and high cost of funding and the resultant reduction in real sector activities as well as pre and post election uncertainties affected the company’s performance.

    “With the establishment of newly elected government in May 2015, there are high expectations for better economic growth that will give room for the actualisation of strategic projects earmarked for the next financial year,” Koguna said.

    He expressed optimism that expected improvement in national infrastructure and resolution of the insecurity challenge in the North East of the country would support the company’s  performance in the years ahead.

    He said the company would continue to maintain high ethical standards as it seeks to build long-term values for all stakeholders.

    “Good governance and ethical conduct provide the foundation for everything we do at Red Star Express. They help us earn the trust, manage risks, foster sustainable growth, and build a resilient business,” Koguna said.

    He reiterated the commitment of the board and management to creating wealth for the shareholders of the company and all the stakeholders, pointing out that the company, through its Red Star Foundation, gave out 11 additional scholarships to students during the period.

    “The success of our business depends on earning the trust of our customers, our partners and our stakeholders. That’s why we place such importance on strong corporate governance and ethical conduct,” Koguna stated.

     

  • Seven-Up, Red Star Express to declare dividends next week

    The boards of directors of Seven-Up Bottling Company Plc and Red Star Express Plc may announce dividend recommendations for the immediate past year next week as the directors meet to authorise the annual reports and accounts for the year.

    Regulatory filings at the Nigerian Stock Exchange (NSE) indicated that the two quoted companies might have finalised their audited accounts and reports and were ready to make dividend recommendations. Both Seven-Up and Red Star Express operates similar year-end of March 31.

    Under the listing requirements and corporate governance standards at the NSE, the two companies are expected to submit their audited report and accounts for the year ended March 31, 2014 on or before June 30, 2014.

    Post-listing rules at the NSE require quoted companies to submit their earnings reports, not later than three months after the expiration of the period. However, a general extension of one-month grace period earlier granted by the NSE would still apply to both Seven-Up and Red Star Express, indicating that the final deadline for the submission of their earnings reports might be extended to July 31, 2014, after which they would be sanctioned by the NSE if they failed to submit their earnings reports.

    Reports at the Exchange indicated that the board of Seven-Up has scheduled a meeting for next week’s Monday with two main agenda; including final review and approval of the audited report and declaration of dividend.

    Also, the board of Red Star Express will later in the week meet to discuss the company’s audited accounts and make dividend recommendation to shareholders.

    The two boards are expected to immediately communicate their decisions at the respective meeting to the NSE.

    Many market analysts said they expected Seven-Up to increase its cash dividends given its dividend trend in the previous years and the strong performance it had recorded by the third-quarter of the immediate past year.

    Seven-Up had doubled pre and post tax profits in by the third quarter ended December 31, 2013, underlining strong top-down growth and efficient sales and financing cost management.

    The interim report for the nine-month period showed that the soft drink bottling company optimized appreciable increase in sales with efficient cost management to deliver its strongest growth in recent period. With nine-month earnings per share already 37.4 per cent above full-year earnings per share in the immediate past year, Seven-Up significantly scaled up performance during the period. Turnover rose by 23 per cent while gross profit increased by 32 per cent. Pre and post tax profits jumped by 191 per cent and 180 per cent respectively.

    The nine-month report underlined improvement in the profitability of the company. Gross profit margin increased to 39.42 per cent in 2013 as against 36.65 per cent recorded in comparable period of 2012. Profit before tax margin more than doubled at 9.28 per cent in 2013 compared with 3.91 per cent recorded in 2012.

    The nine-month report showed a turnover of N54.95 billion, 22.7 per cent above N44.78 billion recorded in comparable period of 2012. Gross profit increased from N16.41 billion to N21.66 billion. Profit before tax rose from N1.75 billion by December 2012 to N5.10 billion in December 2013. Profit after tax also leapt from N1.40 billion in 2012 to N3.92 billion. Earnings per share for the nine-month period thus stood at N6.13 as against N2.19 recorded in comparable period of 2012.

    Against the background of 70 per cent increase in net earnings per share in 2013, the company had increased cash dividend by 10 per cent. Audited report and accounts for the year ended March 31, 2013 indicated that basic earnings per share improved from N2.62 to N4.46. The company increased cash dividends to N1.41 billion compared with N1.28 billion distributed for the 2012 business year. This implied a dividend per share of N2.20 in 2013 as against N2 in 2012. Notwithstanding the increase in cash payout, dividend cover increased from 1.3 times to 2.0 times. Net assets per share also increased by 22 per cent from N16.09 to N19.63.

    Also, Red Star Express had slightly increased cash dividends in the previous year. Audited report and accounts of the company for the year ended March 31, 2013 showed that turnover rose by 5.0 per cent from N5.03 billion in 2012 to N5.29 billion in 2013. Profit before tax however dropped by 12 per cent from N617.93 million to N544.96 million. Profit after tax was almost flat at N304.53 million in 2013 as against N304.8 million in 2012. Notwithstanding, the company increased cash dividends slightly from N176.85 million to N188.64 million. Dividend per share thus improved from 30 kobo in 2012 to 32 kobo in 2013.

  • Red Star Express to raise N1b to finance growth plan

    Red Star Express to raise N1b to finance growth plan

    Red Star Express Plc could raise more than N1 billion in new equity funds to finance its short-to-medium term growth plan as the logistics company seeks to consolidate its performance.

    To pave way for the new capital issue, the company has increased its authorised share capital from N300 million of 600 million ordinary shares of 50 kobo each to N500 million, consisting of 1.0 billion ordinary shares. Red Star Express has already issued 589.5 million ordinary shares of 50 kobo each, leaving the company with unissued shares of 410.5 million ordinary shares.

    Chairman, Red Star Express, Alhaji Mohammed Koguna, has said the authorised share capital was increased to enable the company to source additional funds from the capital market, although he did not give details of the size and timeline for the new issue.

    An informed source in the know of the undercurrents for the new issue however said the company could raise more than N1 billion with about three-quarters of its unissued shares given its current market consideration. Several shareholders were also said to favour rights issue, which give them the opportunity to maintain the current shareholding structure.

    Koguna said the company’s growth plan over the next one and a half years is capital intensive and would require ‘sizeable funding’.

    According to him, the next growth stage of the company includes expansion projects that would further enhance its vision of being the leading logistics company with global best practices.

    He outlined that the new funds would be used partly to finance building of warehouses on the Lagos-Ibadan Expressway, acquire and improve operational hubs in Abuja and Port Harcourt and also to acquire haulage trucks to meet growing customer demand for dedicated trucking services.

    He added that the company also plans to invest in replacement and renewal of its motorcycle fleet to meet government’s new specification on motorcycles, especially in Lagos State.

    Koguna said that the company would also improve its information and communication technology (ICT) with acquisition of additional equipment such as operational scanners, sorting systems and shipment security equipment.

    According to him, the company has already acquired and started initial preparatory works on five acres of land along the Lagos-Ibadan Expressway.

    He expressed confident that the expansion projects would improve quality of services to customers and increase the company’s profitability.

    Red Star Express has traded between a high and low of N5.10 and N2.19 over the past 52 weeks. it opened this week at N4.49 per share.

    Audited report and accounts of the company for the year ended March 31, 2013 showed that turnover rose by 5.0 per cent from N5.03 billion in 2012 to N5.29 billion in 2013. Profit before tax however dropped by 12 per cent from N617.93 million to N544.96 million. Profit after tax was almost flat at N304.53 million in 2013 as against N304.8 million in 2012. Notwithstanding, the company increased cash dividends slightly from N176.85 million to N188.64 million.