Skyway Aviation Handling Company Plc (SAHCO) has reported a 12.5 per cent increase in profit after tax for the half-year ended June 30, 2026, driven by improved revenue from its aviation ground handling operations despite rising operating costs and tax expenses.

The company’s unaudited financial statement filed with the Nigerian Exchange Limited (NGX) showed that profit after tax rose to N3.85 billion in the first six months of 2026 from N3.42 billion recorded in the corresponding period of 2025.

The improved earnings came as revenue climbed by 10.4 per cent to N23.01 billion, compared with N20.84 billion in the first half of 2025.

The board also declared an interim dividend of N1.624 billion, translating to N1.20 per share, reflecting management’s confidence in the company’s earnings outlook and cash generation.

The financial statement showed that direct costs increased to N10.55 billion from N9.40 billion, leaving gross profit at N12.46 billion, representing an increase from N11.44 billion achieved in the corresponding period of last year.

Other operating income improved significantly to N439.40 million from N217.32 million, while administrative expenses rose to N6.02 billion compared with N5.13 billion a year earlier.

Finance income declined sharply to N105.25 million from N525.22 million, reflecting lower returns on investments and cash balances.

Finance costs also increased to N332.88 million from N133.88 million owing to higher borrowing costs.

Consequently, profit before tax stood at N5.83 billion, down from N5.96 billion in the corresponding period of 2025, largely due to a higher tax charge.

Income tax expense surged to N1.98 billion compared with N1.13 billion in the previous year, leaving net profit at N3.85 billion.

Basic earnings per share stood at 284 kobo, compared with 601 kobo in the corresponding period last year.

SAHCO’s total assets expanded to N86.55 billion as at June 30, 2026, from N82.69 billion at the end of December 2025.

Property, plant and equipment increased to N53.78 billion from N48.53 billion, reflecting continued investment in operational assets and infrastructure.

Trade and other receivables declined marginally to N20.10 billion from N20.33 billion, while inventories fell to N2.06 billion from N2.18 billion.

Cash and cash equivalents closed the period at N3.86 billion, compared with N4.88 billion at the end of 2025.

Shareholders’ funds rose to N64.42 billion, up from N62.09 billion, supported by growth in retained earnings, which increased to N21.97 billion from N19.75 billion despite the interim dividend declaration.

The company generated N9.22 billion from operations during the six-month period, higher than N5.95 billion recorded in the corresponding period of 2025.

After tax payments, employee benefit contributions and finance costs, net cash generated from operating activities stood at N7.97 billion, representing a substantial improvement from N4.49 billion in the previous year.

SAHCO invested N6.77 billion in property, plant and equipment as part of its expansion and operational enhancement programme.

The company also paid N1.62 billion as dividend to shareholders during the period.

Net cash used in financing activities amounted to N2.22 billion, while cash and cash equivalents declined by N1.03 billion during the six months.

The report showed that total borrowings reduced to N3.25 billion from N3.85 billion at the end of December 2025 following repayments during the period.

Current borrowings stood at N1.40 billion, while non-current borrowings amounted to N1.85 billion.

According to the notes to the accounts, the company’s outstanding facility includes a N3.5 billion Bank of Industry loan obtained for the procurement of aviation ground handling equipment.

The report further revealed that investment properties generated rental income of N106.73 million during the period, while the carrying value of investment properties stood at N699.85 million.

With a stronger revenue base, healthy operating cash flows, lower debt profile and continued investment in operational assets, SAHCO maintained a solid financial position in the first half of 2026 while sustaining shareholder returns through the declaration of an interim dividend.

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