NIGERIAN AVIATION HANDLING : QUARTER 1 - FINANCIAL STATEMENT FOR 2024

Nigerian Aviation Handling Company Plc

Unaudited Financial Statement for the period ended 31st March, 2024

Nigerian Aviation Handling Company PLC Consolidated and Separate Financial Statements -- 31 March, 2024

Contents	Page
Consolidated Statement of Comprehensive Income	1
Consolidated Statement of Financial Position	2
Statement of Changes in Equity	3-4
Nahco Plc free Float Analysis	5
Consolidated Statement of Cashflow	6
Notes to the Consolidated Financial Statements	7- 43

Nigerian Aviation Handling Company PLC Consolidated and Separate Financial Statements -- 31 March, 2024

Consolidated and Separate Statement of Comprehensive Income

For the year period ended 31st March, 2024.

`				Group			Company
				Mar. 2024		Mar. 2023	Mar. 2024	Mar. 2023
	Notes
				N'000		N'000	N'000	N'000
Revenue	5			7,977,567		4,293,825		7,614,985	4,115,924
Operating costs	9a	(3,560,441)		(2,566,707)		(3,388,738)	(2,489,957)
Gross Profit				4,417,126		1,727,118		4,226,247	1,625,967
Other Income	6			28,713		52,607		25,920	18,304
Administrative Costs	9b	(2,110,358)		(952,684)		(2,028,123)	(892,716)
Expected Credit Reversal/(Losses)	9c	-		-		-	-
Profit from operations				2,335,481		827,041		2,224,044	751,555
Finance Income	7			15,118		33,403		15,118	33,403
Finance costs	7			(81,938)		(46,072)		(79,265)	(44,290)
Profit/(Loss) before tax				2,268,661		814,372		2,159,898	740,668
Income tax expense	8(a)	(673,187)		(177,834)		(658,917)	(166,650)
Profit/(loss) after tax				1,595,474		636,538		1,500,981	574,018
Other comprehensive income				-		-		-	-
Total comprehensive income				1,595,474		636,538		1,500,981	574,018
Attributable to:
Profit/ (loss) attributable to owners of
the company				1,595,474		630,168		1,500,981	574,018
Non-controlling interest	9			-		6,370		-	-
				1,595,474		636,538		1,500,981	574,018
Earnings per share
Basic earnings per share ( Kobo)	10			82		32		77	29
Diluted earnings per share ( Kobo)	10			82		32		77	29

1

Nigerian Aviation Handling Company PLC Consolidated and Separate Financial Statements -- 31 March, 2024

Consolidated and Separate Statement of changes in Equity

For the period ended 31st March, 2024

	Attributable to equity holders of the Group		Non-
	Share		Share		Retained		controlling
	Capital		Premium		Earnings	Total	Interest	Total Equity
	N'000		N'000		N'000	N'000	N'000	N'000
As at 1 January 2024	974,531	1,752,336	9,400,480	12,127,347	-	12,127,347
Bonus Issue of 1 for 5 units of Shares	-	-	-	-	-	-
Restatement Due to IFRS 9 Adoption	-	-	-	-	-	-
Carrying Balance at 1 Jan 2024	974,531	1,752,336	9,400,480	12,127,347	-	12,127,347
Profit for the year	-	-	1,595,474	1,595,474	-	1,595,474
Earning of Minority Interest	-	-	-	-	-	-
Other comprehensive income:
Adjustments passed within the year	-	-	-	-	-	-
Restated Balance Due to IFRS Adoption in Consolidation				-	-		-
Restated Balance from Arik Air Impairment Bal	-	-	-	-	-	-
Other comprehensive income	-	-	-	-	-	-
Total comprehensive income for the period	-		-		1,595,474	1,595,474	-	1,595,474
Transaction with owners recognised directly in equity
Dividend payable to owners	-	-	-	-	-	-
Dividend Paid	-	-	-	-	-	-
Total transactions with owners of the Company	-		-		-	-	-	-
As at 31st Mar. 2024
974,531		1,752,336		10,995,954	13,722,821	-	13,722,821

3

Nigerian Aviation Handling Company PLC Consolidated and Separate Financial Statements -- 31 March, 2024

	Attributable to equity holders of the Parent
							Non-
	Share		Share		Retained		controlling
	Capital		Premium		Earnings	Total	Interest	Total Equity
	N'000		N'000		N'000	N'000	N'000	N'000
As at 1st January 2024	974,531	1,752,336	8,693,467	11,420,334	-	11,420,334
Bonus Issue of 1 for 5 units of Shares	-	-	-	-	-	-
Restatement Due to IFRS 9 Adoption
Carrying Balance at 1 Jan 2024	974,531	1,752,336	8,693,467	11,420,334	-	11,420,334
Profit for the year	-	-	1,500,981	1,500,981	-	1,500,981
Other comprehensive income:
Adjustment passed during the period	-	-	(11,014)	(11,014)	-	(11,014)
Prior year deferred tax adjustment	-	-	-	-	-	-
Restated Balance from Arik Air Impairment Bal.	-	-	-	-	-	-
Other comprehensive income	-	-	(11,014)	(11,014)	-	(11,014)
Total comprehensive income for the period	-		-		1,489,967	1,489,967	-	1,489,967
Transaction with owners recognised directly in equity
Dividend payable to owners	-	-	-	-	-	-
Dividend Payment	-	-	-	-	-	-
Total transactions with owners of the Company	-		-		-	-	-	-
As at 31st Mar. 2024	974,531		1,752,336		10,183,434	12,910,301	-	12,910,301

4

Nigerian Aviation Handling Company PLC Consolidated and Separate Financial Statements -- 31 March, 2024

Consolidated and Separate Statement of Cash Flows

For the period ended 31st March, 2024

Group

Company

Dec.

Mar. 2024

Dec.

Notes

Mar. 2024

2023

2023

N'000

N'000

N'000

N'000

Cash Flows from Operating Activities

Profit before Tax

2,268,660

8,679,029

2,159,898

7,964,655

Adjustments to reconcile profit before tax to net cash fl	ows:
Depreciation: PPE	11		283,527			945,691
Depreciation: Investment property	13		2,813			11,278
Amortisation of intangible asset	12		(8,085)			16,935
Cost of assets transferred			-			-
Depreciation of the transferred asset			-			-
Depreciation of right of use of assets			18,368			48,693
Assets written off			-	57,222
Depreciation on Assets written off			-	-
Inventory written off			-	-
Unrealised exchange Loss	9		-	204,063
Expected Credit (reversals)/ losses	9c	-	797,917
Unrealised exchange gain	6		(48,803)	(278,254)
Deferred rent released to profit or loss	29		(58,332)	(202,789)
Finance cost	7		81,938	202,041
Finance income	7		(15,118)	(19,985)
Provisions no longer required	6		(635,535)		-
			(379,227)		1,782,812

279,464

2,813

(8,085) - -

17,256

-

-

-

-

-

(49,103)

(58,332)

79,265

(15,118)

519,118

767,278

926,473

11,278

16,850

-

-

48,693

57,222

-

-

204,063

738,243

-

(202,789)

202,041

(19,985)

-

1,982,089

			1,889,434			10,461,841			2,927,176			9,946,744
Working Capital adjustments:
(Increase)/Decrease in inventories			(274,999)			(48,678)			(274,999)	(48,678)
(Increase)/Decrease in trade and other receivables			(12,761,726)			(6,439,445)			(12,393,178)	(3,132,341)
(Increase)/Decrease in intercompany receivables			-			-			(18,862)	47,625
(Increase)/Decrease in prepayments			(5,377,948)			(3,331,687)			(5,152,935)	(3,319,493)
(Decrease)/increase in trade and other payables		28	8,429,228			2,729,563			8,230,891	2,865,577
(Decrease)/increase in interest bearing borrowings		-			1,460,115			-			1,460,115
			(9,985,444)		(5,630,132)			(9,609,083)		(2,127,195)
Cash generated from operations			(8,096,011)	4,831,709			(6,681,908)	7,819,549
Taxation paid		8(b)	(161,927)			(461,934)			(161,927)			(423,231)
Net cash flows from operating activities		(8,257,938)			4,369,775			(6,843,835)	7,396,318
Cash Flows from Investing activities
Purchase of property, plant and equipment		11	(12,639)			(931,677)			(11,938)			(921,494)
Right of use of assets			-			-			-			-
Purchase of Intangible Assets		12	-			(11,325)			-			(11,325)
Acquisition of Investment properties		13	-			-			-			-
Investment in Subsidiaries			-			-			-			(65,500)
Liquidation of debt instrument			-			-			-			-
Proceeds from disposal of property, plant and equipment	-	-			-			-
Rent received	29	3,367,735	220,436			3,304,465			220,436
Outflow from Bond repayment fund		16	-	-			-			-
Grant Received			-	-			-			-
Refund of Deferred income		30	-	(1,000,000)			-			(1,000,000)
Loan to subsidiary			-	-			-			-
Loan repaid by subsidiary	15	-	-			-			-
Interest received	7	15,118			19,985			15,118			19,985
Net cash flows (used in)/ from investing activities	3,370,214			(1,702,581)			3,307,645	(1,757,898)
Cash Flows from Financing activities
Repayment of bond		27	-			-			-			-
Interest Paid		-	(38,039)			-			(38,039)
Finance cost	7	(81,938)			-			(79,265)			(100,000)
Dividends paid		25	-			(2,338,876)			-			(2,338,876)
Payment of interest on lease		28b	-			(182,744)			-			(182,744)
Short Loan			2,742,100						2,742,100
Loan to Related Party												(3,210,000)
Payment of Lease Liability		28b	-			-			-			-
Net cash flows used in financing activities		2,660,162			(2,559,659)			2,662,835			(5,869,659)
Net (decrease)/increase in cash and cash equivalents	930,824			107,535			1,085,500			(231,239)
Cash at bank and in hand, beginning of year		2,919,533			2,811,998			2,031,851			2,263,090
Cash at bank and in hand, end of Period		22	3,850,357			2,919,533			3,117,351			2,031,851
Cash & cash equivalents at 31st Mar. 2024		22	3,850,357		2,919,533			3,117,351	2,031,851

5

Nigerian Aviation Handling Company PLC Consolidated and Separate Financial Statements -- 31 March, 2024

NAHCO PLC free float status

Shareholding Structure/Free Float Status

	Mar. 31st, 2024	Mar. 31st, 2023
Description		Percentage (In
	relation to Issued		Percentage (In relation
	Units	Share Capital)	Units	to Issued Share Capital)
Issued Share Capital	1,949,062,500	100.000%	1,949,062,500	100.000%
Details of Substantial Shareholdings (5% and above)
[Name(s) of Shareholders]
Godsmart Nigeria Ltd	525,278,312	26.950%	525,278,312	26.950%
White Cowry Industries Limited	178,643,862	9.165%	178,643,862	9.165%
Awhua Resources Limited	138,945,487	7.129%	138,945,487	7.129%
Total Substantial Shareholdings	842,867,662	43.244%	842,867,661	43.244%
Details of Directors Shareholdings (direct and indirect), excluding directors' holding substantial interests
[Name(s) of Directors]
Dr. Seinde Fadeni Oladapo	-	-	-	-
Engr. Mohammed Gambo Umar, mni, FNSE	-	-	-	-
Mr. Indranil Gupta	-	0%	-	0.000%
Sir Sunday Nnamdi Nwosu (Direct)	1,240	0.000%	162,858	0.008%
Mr. Akinwumi Godson Fanimokun (Direct)	7,031,932	0.361%	6,731,932	0.345%
Mr. Salman Taofeeq Oluwatoyin	-	-	-	-
Engr. Solagbade Olukayode Alabi	-	-	-	-
Mr. Tajudeen Moyosola Shobayo (Direct)	19,508,768	1.001%	14,532,944	0.746%
Prof. Enyinna Ugwuchi Okpara (Direct)	39,600	0.002%	39,600	0.002%
Dr. Peter Olusola Obabori	-	-	-	-
Mrs. Abimbola Adunola Adebakin	-	0.000%	-	-
Prince Saheed Lasisi (Direct)	6,563,665	0.337%	6,146,913	0.315%
Total Directors' Shareholdings	33,145,205	1.701%	27,614,247	1.417%
Details of Other Influential shareholdings, if any (E.g. Government, Promoters)
[Name(s) of Entities/ Government]	-	-	-	-
Total of Other Influential Shareholdings	-	-	-	-
Free Float in Unit and Percentage	1,073,049,634	55.055%	1,078,580,592	55.338%
Free Float in Value	N34,337,588,288.00	N8,736,502,795.20

Declaration:

1. NAHCO Plc with a free float percentage of 55.055% as at 31st Mar. 2024, is compliant with The Exchange's free float requirements for companies listed on the Main Board.

1. NAHCO Plc with a free float percentage of 55.338% as at 31st Dec. 2023, is compliant with The Exchange's free float requirements for companies listed on the Main Board.

Note:

• Share Price as at Mar. 31st, 2024 N32.00
• Share Price as at Dec. 31st, 2023 N8.10

6

Nigerian Aviation Handling Company PLC Consolidated and Separate Financial Statements -- 31 March, 2024

NIGERIAN AVIATION HANDLING COMPANY PLC

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH, 2024

1. Reporting entity

Nigerian Aviation Handling Company PLC ("nahco aviance" or "the Company") is a company domiciled in Nigeria with its registered office at Murtala Muhammed International Airport, Ikeja, Lagos. The consolidated financial statements of the Company for the year ended 31 MARCH 2024 comprise the Company and its subsidiaries (together referred to as the "Group" and individually as "Group entities"). The group is primarily involved in provision of services including aircraft handling, cargo handling, passenger handling, passenger profiling, crew transportation, energy and power distribution and leasing of ground handling equipment.

2. Basis of preparation

1. Statement of compliance
   The financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

The financial statements were authorized for issue by the Directors on 29th April, 2024.

1. 1. Functional and presentation currency
      These financial statements are presented in the Nigerian Naira, which is the Group's functional currency. Except as indicated, financial information presented in Naira has been rounded to the nearest thousands.
2. Basis of measurement
3. 
   These financial statements are prepared on the historical cost basis.
4. Use of estimates and judgments
5. 
   The preparation of the consolidated and separate financial statements is in conformity with the IFRSs requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
   The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

2. Basis of preparation - Continued

1. Use of estimates and judgments - Continued
   Judgments
   In the process of applying the Group's accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognised in the financial statements:
   Determining the timing of satisfaction of Ground and Cargo Handling Services
   Revenue from contract with customers is to be recognized over time because the customer simultaneously receives and consumes the benefits provided by the Company. The fact that another entity would not need to re- perform the service that the Company has provided to date demonstrates that the customer simultaneously receives and consumes the benefits of the Company's performance as it performs.

7

Nigerian Aviation Handling Company PLC Consolidated and Separate Financial Statements -- 31 March, 2024

The Company has determined that the input method is the best method in measuring progress of Ground and Cargo Handling Services contracts because it can demonstrate that the invoiced amount corresponds directly with the value to the customer of the Company's performance completed to date.

Operating lease commitments - Group as lessor

The group has entered into commercial property leases on its investment property portfolio. The group has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting a major part of the economic life of the commercial property and the present value of the minimum lease payments not amounting to substantially all of the fair value of the commercial property, that it retains all the significant risks and rewards of ownership of these properties and accounts for the contracts as operating leases.

Going concern

The group's management has made an assessment of its ability to continue as a going concern and is satisfied that it has the resources to continue in business for the foreseeable future. Furthermore, the Management is not aware of any material uncertainties that may cast significant doubt upon the Group's ability to continue as a going concern. Therefore, the financial statements continue to be prepared on the going concern basis.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

1. Use of estimates and judgments - Continued
   Discount rate used to determine the incremental borrowing rate
   The Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) as it relates to each specific subsidiary to measure lease liabilities. The IBR is the rate of interest that each entity in the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.
   The Group estimates the IBR using the following steps:
   Step 1: Reference rate: This is generally a government bond reflecting risk-free rate. Repayment profile was considered when aligning the term of the lease with the term for the source of the reference rate.
   Step 2: Financing spread adjustment: Use credit spreads from debt with the appropriate term by considering Company's stand-alone credit rating or similar Company credit rating.
   Step 3: Lease specific adjustment: Use of market yield for the leased assets, as an additional data point and to check the overall IBRs calculated.
   Re-assessment of useful lives and residual values
   The Group carries its PPE at cost less accumulated depreciation and impairment in the consolidated and separate statements of financial position. The annual review of the useful lives and residual value of PPE result in the use of significant management judgements.

8