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Red Star Express Unveils Growth Plan, Declares N9.46billion Turnover -

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Business

Red Star Express Unveils Growth Plan, Declares N9.46billion Turnover

 

Red Star Express Unveils Growth Plan, Declares N9.46billion Turnover

The Chief Operating Officer of Red Star Express Plc, Dr. Peter Olusola Obabori, has stated that the top courier company was reengineering its business processes to further enhance productivity and profitability post Covid-19.

“Our Company is currently undertaking a Business Process Re-engineering (BPR), in order to bring about increased productivity,
efficiency, better cost management, digital transformation and seamless operations, among other benefits.

“The strengthening of our core businesses with capacity for revenue generation and higher profitability remains our short-medium term strategy in the face of rising costs of operation and continuous devaluation of the Naira.

Redstar Express Raises N1.34Bn to Boost Operations

Our Post-Covid19 mantra centers on Accelerated Recovery and Growth which will be driven through service optimization,
cost minimization, asset utilization and revenue generation ” he stated.

Meanwhile, Red Star Express Plc has recorded a turnover of N9.46billion for the financial year ended March 31, 2021.

The company recorded a Profit Before Taxation (PBT) of N220.79 million and total of N150.07million as the Profit After Tax
(PAT). In the year under review, Red Star Express Plc grew its Balance sheet size by N211million with Total Assets and shareholders’ funds closing at N7.5billion from N7.3billion in the previous year which
represents a 2.9per cent growth.

This was revealed by the Chairman of Red Star Express, Alhaji Suleiman Barau, at the recently concluded 28th Annual General Meeting (AGM) of the company.

The 11 shareholders who attended the meeting physically and 178 shareholders who attended the meeting by proxy via zoom, holding about 543,674,009 units of shares, voted that 5kobo for every 50kobo ordinary be distributed to stakeholders as dividend and that N8million be given as Director’s remuneration. They also urged the company to pay up the dividend as soon as possible rather than wait for 7days.

Above all, Stakeholders applauded Red Star for its commitment and asserts that there is still a room for improvement, hence encouraged the company to do better.

The company introduced its new directors to stakeholders – Mr Peter Surulere Aletor and Chukwuemeka Emmanuel Ndu, both of who hold the title of the Non-Executive Director.

The company stated that the duo was
appointed after a rigorous exercise of electing qualified persons. While Mr Peter Aletor is an Accountant by training with over 25 years’ experience in Stockbroking, Mr Chukwuemeka Ndu is an Accountant with over 35years experience in Accounting, Money market, Project Finance, Audit and Tax consulting.

According to the Chairman Red Star Express Plc, Alhaji Suleiman Barau (OON), Red Star is committed to remaining steadfast in the welfare of stakeholders. “We maintained our promise of remaining steadfast in our
policy of ensuring that the social and economic welfare of our stakeholders are preserved and sustained through the Red Star Foundation.

The Company has constantly reviewed the activities of Red Star Foundation and has expanded into new areas”.

“Red Star Express through its subsidiaries supported some non-governmental organizations in the free delivery of palliatives in several local communities within Lagos and its environs.

Red Star Logistics particularly partnered with United Way Greater Nigeria (a US origin NGO) to facilitate the delivery of large quantities of food items and other consumables to various communities.

Our top priority remains the health and safety of our employees, customers and the communities we serve by providing resources for health & safety in all our facilities across the country and our francophone branch offices, whilst also leveraging technology-driven solutions to offer services and remain committed to our customers’ day-by-day”.

“The Board and Management have a solid commitment to continuously deliver a strong and sustainable performance that enhances maximum returns to our stakeholders.

As we march forward in the year with confidence and optimism, knowing well that our businesses have been repositioned to take advantage of technology and key opportunities, we stay focused in the execution of our growth strategy”, he added.

Furthermore, Dr. Obabori also appreciated shareholders for their confidence in Red Star Express.  “We once again appreciate our esteemed shareholders for the confidence reposed in the Board and the Management and do assure you that these investments will begin to reap returns from the new financial year; even as the world economy continues its recovery from the effects of COVID-19 pandemic”.

He confessed that the drastic drop in profit when compared to the last dispensation was as a result of the COVID-19 effects, but that the company has rejuvenated in the current year. “We are doing well in the current year, with the hope that the economy will improve with time. Red Star Logistics is the backbone of the company.

During the lockdown, travel restrictions affected transportation by air, hence goods meant for Red Star Freight were transported by road, and this affected the Red Star logistics main job and income flow.

A blueprint was developed by all the subsidiaries, departments and the Group as a whole, to monitor and execute the plan. In addition, resourcing our new growth platforms such as the e-commerce business unit through rapid customer acquisition and on-boarding, is being aggressively driven
whilst we are also expanding our partnerships for the General Services Agency with the airline industry.

Expansion of trucking activities for large manufacturing companies, improved brand expression and brand enhancement initiatives; Staff realignments, motivation and trainings and Customer Loyalty Programmes are also some of the tools being deployed accordingly”, he added.

“Further to the successful Rights Issue completed in 2020, the investment in a new warehouse facility at the Murtala Muhammed International Airport (MMIA), The Vehicle Service Centre on Lagos-Ibadan Expressway and the investment in our ICT infrastructure would have been fully actualized in the new financial year with more visible impact on productivity in the medium-long term”.

“We will also continue to pursue initiatives to cut carbon emission by adopting eco-friendly initiatives and strategies. Just as our Company has always delivered on its promises, we would not relent in our
commitment, dedication, ethical business dealings and promotion of your
business”.

TheConscience

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