BHN Returns to Profitability
BHN Plc, formerly Blackwood Hedge Nigeria Plc returned to profit position during the financial year ended December 31, 2003, after years of recording financial losses.
The Chairman of the company, Chief Rasheed Gbadamosi told shareholders recently at the 55th Annual General Meeting that year 2003 was indeed a turnaround year for BHN.
He disclosed that the company's turnover for the year under review increased to N560 million as against N421 million in 2002, while a profit after tax was N5 million in 2003 as against a loss of N37 million recorded in 2002.
Gbadamosi explained further this was achieved through focused management, cost containment and improved margins on specific business contracts that BHN was able to secure.
He recalled during the year under review, the operations of the company were restructured in an effort to stem the history of losses and to turn the company around to a path of profitability. According to him, the business of BHN was segmented into the following Strategic Business Units:
Scania Business Development that was focused on the importation, distribution and sale of Scania trucks (both new and used) and Scania buses.
Logistics Services is a worldwide trend among leading manufacturers and distributors to out source the transportation of their goods.
After Care Services was focused on providing spares, repair and maintenance services to both our buyers as well as its Logistics Unit.
He noted that during the review period, all three areas of activity recorded progress.
On the future of the BHN, Gbadamosi said that the relatively high interest rates prevailing in Nigeria, tight monetary and fiscal policy pursued by the government and the prevailing shortterm mindset in the transport industry created formidable challenges to the purveyor of premium quality capital goods and services such as BHN.
However, he assured that the value inherent in the Scania product will be seen and appreciated by the leaders in the Nigerian transport industry with commensurate growth in BHN's business and profitability in the current year.
"The focused approach, growing credibility of our people and improved skills through training will, we believe, win through to produce results in 2004 more in line with the magnitude of the opportunity that we believe exists in Nigeria for your company," he said.
BHN was incorporated in Nigeria as a private limited company in 1948 and converted to a public limited company in 1973. The name of the company was changed from Blackwood Hodge (Nigeria) Plc at the annual general meeting held on August 19, 1997. The company's shares are currently quoted on the Nigerian Stock Exchange (NSE).
It is engaged in the importation, distribution and serving of scania trucks and buses. It also provides logistics and management services. It is also involved in the revenue collection project of National Electric Power Authority (NEPA) as well as the rehabilitation of certain NEPA stations.
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