Swissport profit jumps, dividends up

Swissport Tanzania profit before tax increased by eight per cent in the first half of this year, thanks to increased frequencies and use of bigger aircraft by airlines.

The ground handler firm that also trades on the Dar es Salaam Stock Exchange (DSE) saw its pre-tax profit shooting up from 3.99bn/- in the first six months ending June 2011 to 4.33bn/- of last June.
Swissport’s Chairman Juan Jose Andres Alvez attributed the profit rise to increased number of executive jets, freighters and imported cargoes as well as enhanced operational efficiency.

“During the period (under review) the number of flights handled increased by eight per cent while cargo volume increased by 16 per cent compared to the same period last year,” Mr Alvez said.

To cater for the increase in cargo volume, the firm plans to construct a new import warehouse which is estimated to cost 9.4million US dollars (about 15bn/-) after obtaining relevant approval. 
 
 “All these measures are aimed at enhancing our competitiveness and stimulate export trade,” the chairman said in the statement yesterday.

In the last seven days, Swissport share price has gained by 11.67 per cent, from 1,200/- to close the week at 1,340/- per share. According to DSE, on year-to year, the ground handler’s shares have the highest appreciation rate of 63.4 per cent, having risen from 820/- to 1,340/-.

The profitability level has pushed up the earning per share by 12 per cent from 75/33 to 84/36, while interim dividend rose by eight per cent from 62/27 to 67/49 in comparison to last year’s corresponding period.

“The board is delighted to announce an interim dividend of 2.43bn/- compared to 2.24bn/- of the previous half,” Mr Alvez said. The share will trade cum dividend up to September 10 of this year and payment is due in November.

On the future outlook, the chairman said despite decreasing cargo volumes over European economic crisis, the situation seems to be grim in domestic market that has increasing volumes.

“Likewise our airline customers, with the exception of a few areas, are doing quite well,” said the chairman, expressing optimism that the remaining part of the year will be equally good.

Source: The Daily News,http://www.dailynews.co.tz, reported by Abduel Elinaza
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