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RedStar Records 27 Percent Increase

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In spite of the global economic downturn that has drastically reduced volumes in the logistics and courier business, RedStar Express Plc, a wholly owned indigenous courier company that aspires to be the best service –driven logistics solution provider in the country has recorded an impressive 27 percent growth in earnings. Mohammed H. Koguna, chairman of the company disclosed this during his annual report and accounts presentation for the financial year 2008/2009  at the company’s 16th  Annual General Meeting held in Lagos last week . This year’s AGM marked the second since the company was quoted on the Nigerian Stock Exchange.
Koguna informed that despite the lull in capital market activities that sizeable volume of the company’s shares was actively traded on the floor of the Exchange.
Koguna said the entrance of more players in the courier space has heightened competition in the industry with mounting pressure on prices and margins even as he lamented the deplorable condition of the Nigerian roads which the organization has to contend with often leading to high maintenance cost and accidents.
The chairman was happy that three subsidiaries created by the company in the financial year demonstrated impressive first year results saying that collectively the subsidiaries accounted for 25 percent of the group’s turnover with higher margins.  Focusing on different segments, he said the birth of the subsidiaries gives RedStar Express Plc a broader revenue base and greater growth potentials which he said will go a long way in reducing the risks of the company while ensuring stability of income.
On the financial performance of the company within the financial year, Koguna said the harsh business environment notwithstanding that RedStar Express posted a good performance with group turnover increasing by 29 percent from N3.1 billion N4 billion while profit before tax leapfrogged by 50 percent to N459million and profit after tax grew by 27 percent to N248 million after making adjustments for back duty additional tax arising from 5 years tax audit covering 2003-2007. Earnings per share therefore increased from 33 kobo to 42 kobo. In view of that, the Board of Directors of the company recommended a cash dividend of 30 kobo per share payable to shareholders whose names appeared on the register of the company as at August 13, 2009.Subject to withholding tax , the AGM  approved that the total dividends payable  to shareholders amounts to N177 million
It would be recalled that in the company’s Annual General Meeting held in July last year, dividend of 25 kobo was declared per ordinary share amounting to N147 million.
On corporate social responsibility, Koguna said the board of directors approved a grant of N6million to RedStar Foundation for the purpose of establishing the scholarship scheme in the eastern and northern parts of the country even as the AGM approved that appropriation of 0.5 percent of profit after tax be granted to RedStar Foundation as a way of extending the CSR of the company on continual basis.
On its operations, the chairman said the board has set a strong growth platform in the subsidiaries of the company given their potentials saying that considering the global economic downturn that the approach of the company for 2009/2010 will be of cautious optimism.
Sule Umar bichi, managing director / chief executive officer of the company assured that all the companies’ money owed by their customers will be collected as the management has contracted credit collection personnel in Abuja and Port Harcourt to enhance the process. He said what is happening in the money market and the finance   sector  has been noted even as he informed that the company is making sure that that does not affect their debt collection. 


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E-Financial

FG Sacked IST Members over Fraud- Ahmed

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Mrs Zainab Ahmed, minister of Finance Budget and National Planning, has said the Federal Government sacked some past members of the Investments and Securities Tribunal (IST) as they indulged in corruption.

FG Sacked IST Members over Fraud- Ahmed

Inaugurating the new members, the minister charged the new members to eschew corruption and be forthright.

Bar. Azi Amos Isaac was appointed as Chairman for a five year term and Bar. Nosa Smart Osemwengie, was re-appointed as member for a second term of four years.

“The problem with the tribunal has been infighting amongst members, lack of industrial harmony and series of complaints bordering on maladministration.

“This has been the bane of the tribunal and a source of embarrassment not only for the Ministry of Finance but for the government in general,” Ahmed said.

The new chairman, Azi, assured the finance minister that, “the teething issue of restiveness has been addressed since he assumed duty,” adding that, “The place is calm and the staff have become very supportive.”

Azi said since 2003, the tribunal has “given judgment in the value of assets worth over N844 billion and that from 2017 to date, they have given decisions in monetary value totalling over N28bn.

“It has not failed in its adjudicatory responsibility.

“It has carried out its assignment with candour and integrity and intends to improve on what has been on ground.”

 


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CBN Bans Customer-to-Customer Forex Transfer

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Central Bank of Nigeria (CBN) has banned transfer of foreign exchange (forex) from one customer to another.

CBN Bans Customer-to-Customer Forex Transfer

According to the apex bank, forex cash lodgements into domiciliary accounts can only be done by the account owners henceforth.

An internal memo available in the media space explains that the new guidelines are necessary to review the utilisation of inflows into customers domiciliary accounts.

The circular states: “Forex inflows cannot be credited to customers until the legitimacy of funds is established.

“They can have unfettered access by telegraphic transfers up to a limit of $40,000 monthly for payment of medical bills, school fees, subscription to professional bodies subject to existing CBN guidelines.

“Transfers from one customer to another is prohibited. Transfer within related companies is allowed subject to a limit of $50,000 per month.”

It recommended that proceeds from non-oil exports should be sold to banks, used for repayment of dollar term loans, and self-utilisation for trade transactions for LC, bills and Form A.

Also oil export proceeds from E&P companies are to be used to pay contractors and service providers employed by the oil companies in addition to the recommended uses for non-oil FX proceeds.

Offshore forex inflows from other Nigerian banks and internal account to forex transfers sourced from offshore inflows are to be used for trade transactions subject to eligibility for E-Form M.

“Upon confirmation of the legitimacy of the inflows, customers can have unfettered access, subject to a maximum of $50,000,” the document read.

“Utilisation for trade transactions subject to processing of eligible trade transactions using E-Form M. Payment for services must be backed with demand note from offshore beneficiary and other regulatory documents.

“Related party transfers are allowed to the maximum of the inflow received. The transfer request should be backed by a signed instruction from the account holder.” Payment of government fees and levies are also allowed to the maritime, oil and gas, aviation. government parastatals and export processing zones.

 


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UBA Launches ‘RED Radio’, New Online Entertainment Platform

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United Bank for Africa, (UBA Plc), Pan- African financial institution, has continued to lead in innovation with the launch of its dynamic and creative Online Radio channel – RED Radio.

UBA Launches ‘RED Radio’, New Online Entertainment Platform

RED Radio, powered by UBA is a lifestyle web platform that has been set up to inform, educate, entertain and to bring to the fore, the best of Africa.

Much like its sister platform, REDTV, RED Radio is expected to showcase the best in lifestyle, entertainment, music, news, comedy and fashion.

Speaking on the launch of RED Radio, Tony O. Elumelu, group chairman of UBA,  applauded the creative initiative, emphasising that UBA is a financial institution always ready to support  creativity and entrepreneurship. The 2020 Time 100 most influential person in the world who has committed USD100 million to empowering young entrepreneurs across Africa said about RED Radio, “Creativity and innovation are a powerful combination and every detail in an art piece is important and meaningful. This applies to growing businesses and budding entrepreneurs. You will encounter challenges, like I did, but each experience is a lesson that brings you closer to your goal. That is the beauty of creativity.”

Continuing, Elumelu remarked, “There are many ways to make something beautiful, to make a sound interesting or to bring a story to life. You can define your expression, and today, as UBA’s RED Radio launches, I wish Bola Atta and her enterprising team many successes through this beautiful medium of expression.”

In appreciation of the support of UBA Group Chairman for the exciting creative initiative, Bola Atta, UBA’s group head, Corporate Communications, said ‘just like, REDTV which is Africa’s leading  online entertainment network, RED Radio is positioned to fast become the foremost online radio platform in Africa’.

Also expressing his delight, UBA’s Brand Ambassador and star boy, Wizkid, said, “I am never too busy for my UBA family as he granted an exclusive interview on one of the station’s flagship shows ‘On the Street’ where he spoke extensively about his upcoming album and what his fans should expect from him in the coming weeks.

RED Radio promises to bring rich and engaging content that will keep its audience coming back constantly for vibrant and robust entertainment. Listeners can tune in to www.itsredio.com 24/7.

 

 


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