The Board of Red Star Express Plc, today informed the Nigerian Stock Exchange and the investing public that the company has commenced operation in neighbouring Benin Republic.
A statement signed by the company’s Secretary, Ms Frances Ndidi Akpomuka, disclosed that Red Star’ newly-opened office in Benin Republic will advance its business of picking up and delivering sensitive packages. The Benin operation will be known as Red Star Express Benin.
Meanwhile, the statement further disclosed that Red Star Express Plc recently signed major deals with two global courier companies – FedEx and TNT – to become their licensee in Benin Republic. This deal will authorise the company to handle all of FedEx’s and TNT’s package deliveries in the country.
Parts of the statement read thus:
“Red Star Benin has been appointed licensee of FedEx and TNT in Benin and will handle FedEx and TNT inbound and outbound packages in Benin including but not limited to pickups, deliveries and customs clearance of courier materials and bulky freight packages. Packages in and out of Benin Republic will flow into FedEx and TNT global covering over 220 countries.”
The expansion had been long-awaited
Red Star Express Plc has recently been positioning to expand its operation. As we reported, shareholders last month approved the plan to transit Red Star to a holding company. They also approved a capital raise, which the Chairman, Alhaji Mohammed Koguna, explained was necessary in order to take advantage of the emerging business opportunities.
It is expected that the move will help improve the company’s growth
The company has had a consistent increase in revenue over the last few years but has struggled with its bottom line. Revenue increased from N6.4 billion in 2014 to N8.4 billion in 2017.
Profit before tax rose from N403 million in 2014, dipped to N572 million in 2016, peaked at N653 million in 2017 and then fell to N610 million in 2018.
Profit after tax, however, increased from N403 million in 2014, peaked at N426 million in 2017 and then dropped to N347 million in 2018.
Redstar Express Plc is a Nigerian logistics company which was incorporated on the 12th of October, 1992. It became a quoted company on the 9th of July 2007.
The company’s operation is grouped into three subsidiaries namely Red Star Freight Limited, Red Star Logistics Limited and Red Star Support Services Limited. Together, these companies comprise a group that engages in courier services, mail management services, freight services, logistics, warehousing and haulage.
The company’s stock is currently trading at N4.60.