ABC Transport is poised for profitability – Obayomi

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Photo: Group photograph of some members of the Board and Management of ABC Transport PLC, shortly after their 2024 AGM.

By Everest Ezihe, Owerri

Prince Olumide Obayomi, the Chairman of ABC Transport PLC has assured shareholders of the company that henceforth their company is poised for profitability, despite environmental challenges, even as the shareholders gave thumbs up to both the board and management members of the company for their digital transformational initiatives, hardwork and futuristic business acumen.

Obayomi stayed this while presiding over the company’s 32nd well attended Annual General Meeting, AGM held recently at a prestigious hotel in Owerri, Imo State capital, just as the shareholders overwhelmingly commended the board and management for repositioning the company despite stringents operating environment.

He siezed the opportunity to thank the shareholders immensely for their unflinching support to their company, its board and management over the years, and reiterated efforts put in place to ensure that the company again returns into profitability in the overall interest of the shareholders.

The Chairman also expressed satisfaction for their patience and understanding especially in the past 5 years, “as we worked through, re-strategized and repositioned the company in the face of and aftermath of the capital erosion inflicted upon us by the COVID-19 pandemic.

“We have recovered from the provable lost of about N1 Billion in 2020/2021, and have returned our company to profitability in spite of the continuing gap in our company’s financing.

“Your faith and confidence have helped to a remarkable extent in ensuring that we relentlessly pursued to return the company into the path of prosperity and sustainability in the utilization of our company’s financial and human capital.

“The report of our stewardship as presented in this year’s report, is a testament to remarkable proven turnaround from the gloom that bedevilled our company in 2020 and most part of 2021 following the COVID-19 pandemic.

” The failure by the public sector and especially the then Central Bank of Nigeria, CBN to grant our company any access to the intervention funds made accessible to certain institutions during the era made our story a lot more cheering” he lamented.

Obayomi further expressed optimism that the relative stability in the fuel prices occasioned by the coming on stream of the Dangote Refinery, together with some structural reforms in the nation’s oil and gas sectors have brought some measure of reprieve to the operating environment.

He however, complained of heightened inflation, which he said has impacted adversely on businesses especially on the travel and logistics segments, as well as insecurities, most especially the Monday “sit at home ” that has been persistent in the South Eastern part of the country.

The Chairman also noted that transporters in Nigeria have been subjected into payment of multiple taxes and levies across the length and breadth of the nation, more still as many of the country’s roads are in deplorable conditions and impassable especially during the rainy season.

He observed that, “the road transport industry in Nigeria remains largely unregulated, giving advantage to informal players and deepening the industry’s continuing fragmentation”.

Obayomi informed that the company’s turnover as at 31st December, 2024 grew by 68.81% from N3.54 billion in 2023 to N5.97 billion in 2024, while operating profit grew by 51.40% from N608.73 million in 2023 to N921.60 million in 2024, and profit before tax of N496.46 million was recorded in 2024, against a profit before tax of N260.94 million in 2023 representing 90.26% growth in profit before tax.

He also pointed out that profit after tax within the period under review stood at N251.92 million as against a profit after tax of N147.97 million in 2023, indicating a growth rate of 70.25 %.

The Chairman further informed that at the group level, turnover also increased by 70.71%: from N7.31 billion in 2023 to N12.52 billion in 2024.

Similarly, Obayomi stated that the operating profit also grew significantly by 3360% from N40.20 million in 2023 to N1.38 billion in 2024, thus, a profit before tax of N918.45 million was recorded in 2024, as against a loss before tax of N368.61 million in 2023, moreso in 2024 profit after tax was N669.19 million as against a loss after tax of N540.55 million in 2023.

The Chairman attributed the group level loss in 2023 to huge foreign exchange losses suffered by Transit Support Services Limited on its foreign trade liabilities/ obligations following the huge devaluation of the Naira then.

He lamented that despite the company’s recording a profit after tax of N251.92 million in the year under review as against N147.97 million in 2023, that the board is still constrained by regulation not to declare dividends due to the past accumulated losses.

” We expect to sustain the profit trajectory and extinguished the constraints this year, to enable us return to dividend payments soon” he assured.

The Chairman further expressed optimism that the outlook of the company together with the group remain promising and very strong, while predicting that the ongoing repositioning of the country’s economy and the resurgent growth will impact on their business activities positively.

” Notwithstanding the extremely challenging operating environment, we are committed to remain resilient in the pursuit of sustainable growth and profitability underpinned by innovation, riding on the back of recent turnaround in performance”.

Obayomi further pointed out that with the board and management resolved to ensure the company’s strong returns and a resilient balance sheet, that the board has commenced a strategic solution process that will soon make it necessary seeking the shareholders permission and participation in raising additional capital for the company’s business activities and solicited for their unalloyed cooperations.