The management of Skyway Aviation Handling Company Plc, on Friday, presented its unaudited financials for the first quarter ended March 31, 2019, the highlight of which was its return to profit.
Revenue for the period rose by N514.432m or 36.95% from N1.392bn in the corresponding period of 2018 to N1.906bn; of which N1.833bn was derived from its core business of foreign and domestic handling, cargo handling and equipment rental, up from N1.362bn in 2018. The remaining N73.449m represented income from investment properties rental, up fromN29.385m in the preceding first quarter.
A further breakdown of the revenue showed that cargo handling contributed the lion’s share of income at N926.611m, up from N716.512m; followed by N292.02m from foreign handling, which dropped from N338.598m; while ad-hoc handling fetched N249.978m compared to just N482,000 in 2018Q1; among others.
Direct cost increased to N997.891m from N726.857m, the bulk of which was the N332.093m cargo warehouse incentives, which increased from N288.08m; followed by concession fees of N99.383m from N51.96m; and the N66.949m cost of equipment repairs, which rose from N31.07m.The left gross profit at N908.641m rose from N665.244m, representing a rise of N243.397m or 36.58%.
Other operating income jumped to N16.85m from N202,000, driven mainly by the N16.474m earned from the sale of scraps in 2019; while finance income stood at N269,000 from N202,000. Foreign exchange gain also stood at N107,000 from nil in the prior Q1.
Administrative expenses dropped to N580.506m from N619.542m, with employee benefit expenses remaining the bulk at N212.187m from N174.002m; followed by N60.565m spent on gifts and donations, up from N15.34m. Finance cost rose from N23.222m to N31.855m, out of which interest on loan and overdraft grew from N20.063m to N28.318m. Operating profit before tax, therefore, stood at N313.13m from just N22.682m.
There was neither tax expense or tax credit for the period, which left net profit still at N313.13m, as against the N48.063m tax expense in the preceding first quarter that left a loss after tax of N25.381m. Earnings per share stood at 23 kobo, compared to the two kobo loss of 2018Q1.