Red Star Express Plc. Reports N10.5billion Turnover

Red Star Express Plc. Reports N10.5billion Turnover

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Red Star Express Plc, has posted profits in its annual turnover. For the year ended in March 2020, the company recorded an impressive turnover of N10.5billion in the year under review which is a 5percent increase over the preceding year. This was announced at the 27th Annual General Meeting of the company held recently in Lagos.

The company revealed its financial statement for the year ended 31 March 2020 which shows an increase in the profit before tax from N743, 469 in 2019 to an impressive N750, 080 in 2020, and profit after tax increase from N466, 248 in 2019 to N 468,989 in 2020.

With the increase in turnover recorded, the Board of Directors have recommended the payment of the sum of N324million Naira which represents a dividend of 35kobo per ordinary share, as approved at the Annual General Meeting, which is now subject to deduction of withholding tax at 10% and dividend would become  payable  on  the 15th of  October  2020  to  all  shareholders  whose  names  appear  on  the Company’s Register at the close of business on the 18th of September, 2020.

At the Board of Directors’ meeting held on 21 January 2020, the Board passed a resolution to raise additional capital through right issue through creation of additional 336,855,291 ordinary shares of 50 kobo each issued at N4 per share. The share premium increased from N296.4 million to N1.43billion for the year ended 31 March 2020.

The Company’s initial authorized share capital was N7Million comprising of 7 million ordinary shares of N1.00 each and subsequently increased at various stages. The shares were sub-divided into ordinary shares of 50 kobo each in 2006. In January2020, the Company raised capital by the allotment of 336,855,291 shares. Presently, the Company’s total allotted shares stand at 926,352,051 ordinary shares of 50kobo each.

In the period under review no new Directors were appointed and none resigned. The Board of Directors at present is made up of five (5) Non-Executive Directors (which includes the Chairman and an Independent Non-Executive Director) and three (3) Executive Directors. The directors to retire by rotation at the forthcoming Annual General Meeting in conformity with the Articles of Association, and who, being eligible, have offered themselves for re-election at the meeting are:  Sule Umar Bichi and Suleiman Koguna

The COVID 19 Pandemic was an unforgettable event that occurred after the reporting date and had an effect on the Consolidated and Separate financial statements of the Group and the Company as at 31 March 2020 and the profit for the year ended 31 March 2020 on that date.

According to the Chairman, Board of Directors, Mr Suleiman Barau (OON), “Red star Express recorded impressive figures as usual.  I am particularly delighted because the lockdown necessitated by the COVID-19 didn’t affect the financial year and its reports so much. We thank all stakeholders for their usual support and pray this will continue now and always. I am glad to inform you that the last financial year was successful as the company reported impressive figures across all our performance indicators.”

 

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