Tranex Plc, a courier and logistic company has concluded plans to diversify into haulage, and expand its branches to other countries in the Economic Community of West African States (Ecowas).

Chief Eric Nwobi, chairman of the company made this known during the 16th annual general meeting of the company in Lagos yesterday.
Nwobi said the company would move to Ecowas countries such as Ghana, Togo, etc. He has also assured shareholders of the company of better returns over their investments, adding that the company would not only pay dividend but also give bonus to commensurate with their shareholdings in the company.

The chairman said the company has continued to attract new entrants due to the perceived profitability of the business. The chairman said a note-worthy development the company made was the setting up of courier companies by banks to handle their courier and logistics business presumably in a bid to reduce their operating costs.

According to him, product differentiation and diversification to related business areas were part of the survival strategy of the company.

Nwobi said the company recorded significant growth in 2008 as turnover grew by 25 per cent to N480.7 million from N383.3 per cent recorded in 2007. The company recorded a profit before tax (PBT) of N59.43 million as against N45.71 million in 2007, representing about 6.88 per cent increase while profit after tax (Pat) rose by 3.91 per cent to N47.50 million compared with N45.71 million recorded in 2007. He said the board has proposed a total dividend payout of N13.26 million out of the company’s about (Pat) for the period ended December 31, 2008, representing 10 kobo per share which will be subject to the mandatory deduction of withholding tax at the appropriate rate. The chairman stated that the uncertainty in the global economy portends great challenges for the company, remarking that they have identified opportunities.

Nwobi explained that the company would continue to review its processes and strategies to enable it surmount the challenges and harness the concomitant opportunities.

He said in spite the meltdown; the company emerged as the best profitable company under the commercial/services sub-sector listed on the Nigerian Stock Exchange (NSE) and won an award in the respect. “The meltdown has really affected the economy in many ways as banks and corporate organisations are cutting down on us, adding that we taught, we would have doubled 2007 performance, Nwobi noted.”

Nwobi said their bid to raise much needed funds for further development of their business through additional equity by way of pubic and rights issue during the year did not materialise due to the decline in the capital market form the middle of year 2008 which still persist it date. He said the company was constrained to scale down most of their plans and projections for the year 2009 which were predicated on the expected additional capital inflow. The chairman stated that the company is therefore limited to financing its operations from internally generated revenue.

The chairman added that the company was rated the number one company under the commercial/services sub-sector in terms of yield per share.

Mrs. Chidinma Iheme, managing director of the company said the company’s name was change from Trans-Nationwide Express Plc to Tranex because of marketing purposes.
Iheme said changing the company’s name was in the interest of all, adding that it is to sell the brand and the more the brand grows the better for all.

The Financial Standard, Monday August 31, 2009.