GOES PUBLIC …predicts N58.5b revenue growth in 3 years

The Managing Director of Med-View Airlines, Mr. Muneer Bankole has predicted a revenue growth of N58.5billion for the company over the next three years.  He made the prediction on the floor of the Nigerian Stock Exchange (NSE) when his airline was officially listed on the NSE last February 1.

Med-View Airlines which was listed by “introduction” thus becoming the first airline to list its shares on the local bourse in over two decades. The listing came 24 years after moribund ADC Airlines was listed on the NSE. ADC Airlines was listed in 1994. By virtue of the listing Medview Airlines has transformed its status from that of a limited liability company to a public liability company (PLC).

The airline had listed 9,750,649,400 ordinary shares of 50kobo each at N1.50kobo per share on the floor of the Nigerian Stock Exchange (NSE).

It is expected that in the next three years the fortunes of the airline will grow to be worth N58.5billion, according to the airline boss.

Mr. Bankole made his prediction known on the floor of the NSE after the sounding of the closing gong, making Med-View the first listed airline in 24 years. Previously, airlines like Albarka and ADC were admitted and later de-listed.

NSE Chief Executive, Mr. Oscar Onyema, congratulated the board and management of Med-View Airlines on the company’s successful listing on the NSE.

The listing of Med-View, said Mr. Onyema, is proof that despite the welter of policy and economic challenges facing the country, the NSE remained one of the best avenues for raising capital and enabling sustainable growth for national development.

He noted that certain challenges over the last decade hindered the aviation sector, resulting in the exit or decline of many operators and impacting negatively on passenger traffic.

Mr. Onyema commended Med-View Airlines for having the courage to take such an important step of taking the company to the Main Board of The Exchange, pointing out that “our platform remains one of the best avenues for raising capital and enabling sustainable growth for national development”.

“Today’s listing by an introduction of 9.75Billion (9,750,649,400) ordinary shares of Med-View Airlines on the main board of the Nigerian Stock Exchange at a listing price of N1.50 per share is a culmination of several months of hard work by all parties to the transaction, including the Securities and Exchange Commission and The Exchange.

According to him by virtue of this listing Medview has added N14.65billion (N14, 625,974,100) to the market capitalisation of The Exchange, further consolidating the Nigerian capital market. “It will also increase the visibility of Med-View Airlines Plc and differentiate it as a professionally run airline with high corporate governance standards, having met The NSE’s listing criteria,” Mr. Onyema said.

He urged more companies in the aviation sector to take a serious look at the opportunities available in the capital market.

Onyema stated that despite the challenging operating environment in the aviation industry globally, the air transport industry continues to contribute about $10 billion to Gross Domestic Product (GDP) of African countries, and it is projected that close to six million jobs would be supported by Africa’s air transport sector over the next two decades.

The Managing Director of Med-View Airlines, while fielding questions from stakeholders and the media at the occasion, assured that the company will improve its operations through commitment, hard work and dedication to its passengers.

Mr. Bankole explained that Med-View has stood out of the industry crowd by being customer-centric; an attribute that he said will be maintained by timely service. He added that the airline is now in a stronger position to raise capital to expand its business when it becomes necessary.

“Being listed also gives better clout and rating when obtaining loans from financial institutions, boost the airline’s international image and profile as well as improve corporate governance and accountability,” he said.

” In his remark at the fact behind the listing of the airline the Managing Director said, “despite the vast environment and enormous resources in the country, the Nigerian aviation sector is still largely untapped.”

He noted that the Nigerian Aviation industry a lull in activity between the second halves of 2014 and 2016 in terms of number of transactions, aircraft, the weight of cargo and mail moved. According to him the trend could be attributed to the downturn in the economy and various other challenges faced by operators in the industry.

Bankole, however, said that in the midst of this development the company revenue grew from N3.629 billion in 2012 to N25.852 billion in 2016. He further explained that its gross profit also grew from N847 million to N1.627 billion in 2016 while administrative expenses declined from N673 million in 2012 to N577 million in 2016. During the same period, the company’s total assets grew from N4.879 billion in 2012 to N14.079 billion last year. Total liabilities, he added, surged from N1.365 billion in 2012 to N7.473 billion in 2016, while shareholders’ fund increased from N3.514 billion to N6.606 billion last year.