National Handling Services (NHS) reported $18,2 million profit before tax for the 2021 financial year as flight frequencies into the country bulked 96 percent compared to prior year.
This was revealed at the firm’s annual general meeting in Harare, the first such meeting since 2012.
In the year, the size of handled cargo by NHS reached five million kilogrammes on imports while handled exports totaled one million kilogrammes.
Resultantly, revenue surged 194 percent to $782 million from $266 million in 2020 attributable to a notable growth across its operating segments.
Traffic revenue grew 271 percent to $523 million from $141 million, freight and cargo income rose to $231 million from $122 million in 2020, translating to a 90 percent growth while ancillary revenue closed the year at $28 million, a notable 678 percent improvement from $3,6 million the prior year.
Profit after tax in the period under review was $2,8 million, and 2021 was the third year in the running that the company recorded a profit after consecutive losses in 2016, 2017, and 2018.
“NHS implemented a strict cost reduction and containment strategy in response to the Covid-19 pandemic effects. The board directed management to ensure that the business remains afloat to ensure minimum effects,” said Dr Franklin Mukarakate the NHS board chairman in his AGM remarks.
In the year under review NHS handled a total of 7888 flights for both domestic and international routes compared to 4028 flights in 2020 representing a 96 percent increase.
A total of 487 492 passengers were handled in 2021.
However, the 2021 flight frequencies still remain 40 percent below the pre-Covid-19 thresholds of 13 262 flights per annum.
Fastjet recorded the highest number of flights into the country in 2021 at 3 054 from 1 403 in 2020.
Airlink had the second highest number of flights at 2 402 from 601 in 2020 representing a 240 percent growth from 2020.
“The increase in business was mainly attributable to airlines that increased frequencies during the period under consideration,” said Mr Godknows Marawanyika, the NHS chief executive officer.
Like many other entities, NHS noted that it was affected by the constrained operating environment in 2021.
The AGM revealed that the company was on a diversification drive where the firm is now eyeing the establishment of a logistics company with feasibility studies currently underway.
Key achievements in the NHS diversification drive was the successful establishment of a dry port at Walvis Bay in Namibia, while the inland dry port initiative is now at an advanced stage with land identified for projects in Chirundu and Mutare.
The Walvis Bay dry port provides Zimbabwean merchants with a direct alternative shipping route to the Atlantic side from the Americas, the Far East, Europe, and West Africa.
In terms of administration, Dr Mukarakate said his board was striving for excellence albeit incidences of turbulence in operations.
“The NHS board is committed to the highest standards of corporate governance and recognises its responsibility to serve the interests of shareholders thereby creating sustainable growth and shareholder value over the medium to long term whilst also reducing or mitigating risk,” said the board chairman.
NHS is the mainstay of the ground handling industry in Zimbabwe mainly dealing with the movement of both outbound and inbound passengers and cargo.
The company has an array of ground support equipment that can handle any type of aircraft up to Airbus 380. – The Herald
