Home Business Red Star Express To Raise N2.5 Billion For Business Expansion

Red Star Express To Raise N2.5 Billion For Business Expansion

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The managing director of Red Star Express Plc Sola Obabori said the company plans to raise between N2.5 to N3 billion for its business expansion. Obabori disclosed this to stockbrokers and the financial journalist at the company facts behind the figures on the floor of Nigerian Stock Exchange (NSE) in Lagos.

Obabori explained that the new capital will be deployed into four major areas, which includes, technological advancement, investments in new ventures, expansion of existing businesses’ and increase coverage and visibility of their business.

According to him, they are going to automate their processes, unlock long term value through strategic investments in new ventures and explore new growth opportunities in pharmaceutical logistics, agro trade, tech services, prints and packaging.

He noted that they are going to build new warehouse and parking bay along Lagos – Ibadan express way and more offices in underserved locations. He said the warehouse along the Lagos – Ibadan expressway will enable the company conserve money that would have gone into paying of rent.

On the company financial performance he said, revenue grew by 10 percent from N6.6 billion in full year 2016 to N7.2 billion in full year 2017 as a result of its consistent increase in revenue drive, through increase in customer base, innovation and investment in assets.

Gross profit rose by 12 percent from N1.9 billion in full year 2016 to N2.1 billion in full year 2017. The company profit after tax margin increased year on year from 5.0 percent in full year 2016 to 5.8 percent in full year 2017. While profit before tax increased year on year from 8.6 percent in full year 2016 to 8.9 in full year 2017. Obabori attributed it to the company efficient cost management approach in the full year 2017.

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