Sahco Annual Report and Accounts 2023 1

ANNUAL REPORT
& ACCOUNTS
2023
Skyway Aviation Handling Company Plc

Strategic Report Governance Financial Statements Other National Disclosures Shareholders’ Information
table of
contents
Strategic Report
Our Mission Vision Value 4
Company History 5
Corporate Information 6
Notice Of Annual General Meeting (AGM) 8
Chairman’s Speech 11
Managing Director/Ceo’s Speech 15
Financial Highlights 18
Governance
The Board 20
Report Of The Directors 22
Corporate Governance Report 30
Financial Statements
Report Of The Statutory Audit Committee 39
Internal Control Over Financial Reporting 40
Statement Of Directors' Responsibilities 41
Report Of The Independent Auditors 42
Statement Of Profit Or Loss And Other Comprehensive Income 46
Statement Of Financial Position 47
Statement Of Changes In Equity 48
Statement Of Cash Flows 49
Notes To The Financial Statements 50
Other National Disclosures

Value Added Statement - (Non-IFRS) 100
Five Year Financial Summary - (Non-IFRS) 101
Shareholders’ Information
E-Dividend Mandate Activation Form 103
Shareholder's Information Update 105
Proxy Form 107
Photo Gallery 109
Notes 110
sahco.com Skyway Aviation Handling Company Plc Annual Report & Accounts 2023 3
OUR MISSION VISION VALUE
VISION
To provide quality and efficient Passenger, Ramp and
Cargo Handling services in line with best practices and
the highest international standards to the delight of our
customers and benefit of all stakeholders, utilizing state-
of-the-art skills, procedure, equipment and facilities, and
employing a dedicated workforce
MISSION
To become the leading provider of Passenger,
Ramp and Cargo Handling Services in the
West African Sub Region.
CORE VALUES
zz Reliability
zz Proactiveness
zz Responsiveness
zz Empathy
zz Mutual Respect
4 Skyway Aviation Handling Company Plc Annual Report & Accounts 2023 sahco.com
COMPANY HISTORY
The Skyway Aviation Handling Company PLC (SAHCO) is a Public Liability Company,
incorporated as an Aviation Ground Handling Services Provider under the Nigerian
Companies and Allied Matters Act of 1990.
SAHCO, formerly known as Skypower Aviation Handling Company Limited, was carved out of the liquidated
Nigeria Airways Limited as part of the Nigerian Federal Ministry of Aviation’s Reform of 1996. On the 23rd
of December 2009, SAHCO was handed over to the Sifax Group by the Federal Government of Nigeria, after
a keenly contested privatization process in which Sifax Group came first as the preferred bidder with the sum
of N5.52 billion Naira.
The company was listed on the Nigerian Stock Exchange on the 23rd of April 2019. Skyway Aviation
Handling Company PLC, with its new public sector management composition and orientation kicked off the
development of business models geared towards ushering in efficient and speedy service delivery. SAHCO
is RA3 and ISAGO certified and has invested in personnel development, state-of-the-art equipment, fleet
replacement, and massive infrastructural development.
The services of SAHCO involves all the actions that take place from the time an aircraft touches down on the
tarmac to the time it is airborne. It also involves ensuring that Ground Handling assignment is carried out in
an efficient, speedy and safe manner, while deploying the right tools.
CORPORATE INFORMATION
Company’s Tax Identification

RC Number 813022 Number 04683753-0001
Directors:
Barrister (Dr.) Taiwo Afolabi Chairman

Mr. Basil Agboarumi Managing Director (Resigned w.e.f 31st January 2024)
Mrs Adenike Aboderin Managing Director (Appointed w.e .f 1st February 2024)
Dr. Oluropo Owolabi Non-Executive Director
Mr Oladipo Kayode Filani Non-Executive Director
Captain Shehu Usman Iyal Non-Executive Director
Dr. Bukola Bello Jaiyesimi Independent Non-Executive Director
Mrs. Laila Jean St. Matthew-Daniel Independent Non-Executive Director
Mr. Anogwi Anyanwu Independent Non -Executive Director
Mr. Babatunde Afolabi Executive Director
Mr. Olaniyi Adigun Executive Director (Resigned w.e.f 31st January 2024)
Mrs. Boma Ukwunna Executive Director
Mr. Herbert Odika Executive Director (Appointed w.e.f 7th June 2023)
Mr Abiodun Adegbesan Executive Director (Appointed w.e.f 1st February 2024)
Management Team:
Mrs Adenike Aboderin Managing Director/ CEO

Babatunde Afolabi Executive Director IT and Business Development
Boma Ukwunna Executive Director - Cargo Services
Mr. Herbert Odika Executive Director - Operations
Mr Abiodun Adegbesan Executive Director - Finance and Administration
Olugbenga Okeowo GM- Operations
Jesuyemisi Odeyemi GM - Legal/ Company Secretary
Adekunle Donald GM - Cargo Services
James Oriowo AGM- Engineering and Maintenance
Hamzat Bola Olaniyan AGM- Billing
Yinka Afolabi Ogungbemi AGM- Admin Services and Project
Rotimi Omotoso Chief Finance Officer
Taiwo Olayemi Mogaji AGM- Internal Control
Folorunso Elegbede AGM - Human Resources
Christie Oseghale AGM - Safety and Quality Assurance
Benjamin Akinola Head - Internal Audit
Adebowale Okunlola Head - Security
Ayodele Taoheed Sanusi Head - Procurement
Adetola Vanessa Uansohia Head - Corporate Communications
CORPORATE INFORMATION Cont’d
Registered Office Bankers

54, Warehouse Road, Apapa, Lagos State Access Bank Plc.
Ecobank Nigeria Limited
Fidelity Bank Plc.
First Bank of Nigeria Limited
First City Monument Bank Plc.
Guaranty Trust Bank Limited
Operational Office Address: Keystone Bank Limited.
Polaris Bank Limited
Skyway Aviation Handling Company Plc. Stanbic IBTC Bank Plc.
Complex, Cargo Terminal, Sterling Bank Plc.
Murtala Muhammed International Airport, Union Bank of Nigeria Limited
Ikeja, Lagos State. United Bank for Africa Plc.
Wema Bank Plc.
Zenith Bank Plc.
Company Secretary
Registrars
Jesuyemisi Odeyemi
Apel Capital Registrars Limited
FRC/2023/PRO/ICSAN/002/887904.
8, Alhaji Bashorun Street, Off Norman
SAHCO Complex,Cargo Terminal,
Williams Street, Ikoyi,
MMIA, Ikeja, Lagos State
Lagos State.
Advisers
Independent Auditor
J. Ajayi Patunola & Co.
Gbenga Badejo and Co. FRC/2013/0000000000679
(Chartered Accountants) Estate Surveyors & Valuers
A Correspondent Firm of Reanda International 3, Adelabu Close, Opp Custom Training
Plot 8A, Ajumobi Olorunoje Street, College Gate,
Off Acme Road, By First Bank, Off Ola-Ayinde/Toyin Street, Ikeja, Lagos State.
Agidingbi, Ikeja, Lagos State
Tel.: 0809-622-7865. Seyi Katola & Co.
Email: [email protected] (Chartered Accountants)
www.gbc-consult.com FRC/2013/ICAN/00000003609
Actuarial Valuers
1, Babatunde Ladega Street
Omole Bus-Stop
Lagos State.
Solicitors
Justification Law Firm

7, Kolawole Odunsi Street,
Off Unity Road, Mobolaji Bank, Anthony way,
Ikeja, Lagos State.
NOTICE OF ANNUAL GENERAL MEETING (AGM)
NOTICE IS HEREBY GIVEN that the 14th Annual General Meeting (AGM) of Skyway Aviation
Handling Company Plc will be held electronically on Thursday, 13th June 2024 at 11.00am to
transact the following business;
Ordinary Business
1. To receive the Audited Financial Statements for the year ended 31st December, 2023, together with the Reports of the
Directors, Auditors and Audit Committee thereon.
2. To declare a dividend.
3. T
o re-elect the following Directors retiring by rotation
a. M
rs Laila St. Matthew-Daniels - Independent Non-Executive Director
b. Dr Bukola Bello-Jaiyesinmi - Independent Non-Executive Director
c. Barr Kayode Filani - Non-Executive Director
4. To elect/approve the appointment of the following Directors:
a. Mrs Adenike Aboderin - Managing Director
b. Mr Abiodun Adegbesan - Executive Director
5. To disclose the remuneration of the Managers of the Company
6. To authorize the Directors to fix the remuneration of the External Auditors
7. To elect members of the Statutory Audit Committee.
Special Business by Ordinary Resolutions

8. To approve the remuneration of Directors.
9. To consider and if thought fit, pass the following resolution as an ordinary resolution of the Company:
‘That the general mandate given to the Company to enter into recurrent transactions of a revenue or trading nature with
related parties or interested persons for the Company’s day-to-day operations, be and is hereby renewed.’
Voting by Interested Persons:
In line with the provisions of Rule 20.8 (2)(h) Rules Governing Related Party Transaction of Nigerian Exchange Limited,
interested persons have undertaken to ensure that their proxies, representatives, or associates shall abstain from voting on
resolution 9 above.
Dated the 26th Day of April, 2024
By Order of the Board.
___________________
Jesuyemisi Odeyemi
Company Secretary
FRC/2023/PRO/ICSAN/002/887904.
SAHCO Complex,Cargo Terminal,
MMIA, Ikeja, Lagos State
Notice of Annual General Meeting (AGM) Cont’d
NOTES: 7. E-Dividend
Notice is hereby given to all shareholders to open bank
1. Proxy and CSCS accounts for prompt receipt of dividend
A member of the Company entitled to attend and vote payments and in accordance with the directive from the
at the Meeting may appoint a proxy to attend and vote Securities and Exchange Commission. Details of such
in his/her stead. A proxy need not be a member of the accounts should be sent to the Registrars. A detachable
Company. e-dividend form is attached to the Annual Report and
Accounts.
2.
A proxy form is attached to the Annual Report and
Accounts. It may also be downloaded on the Company 8. Nominations to the Audit Committee
website at www.sahcoplc.com. All instruments of proxy In accordance with Section 404 (6) of the Companies
should be completed, duly stamped and forwarded to and Allied Matters Act 2020, any member may
the Company Secretary, Ms. Jesuyemisi Odeyemi by nominate another member of the Company to the Audit
e-mail at [email protected] or deposited at Committee, by giving written notice, of such nomination
the office of the Company’s Registrars, Apel Capital to the Company Secretary at least 21 days before
Registrars Limited, 8, Alhaji Bashorun Street, Off the Annual General Meeting and any nomination not
Norman Williams Street, Ikoyi, Lagos, Nigeria not later received prior to the Meeting is invalid. Kindly note that
than 48 hours before the time of holding the Meeting. the provisions of the code of corporate governance issued
by the Securities and Exchange Commission (SEC)
3. Virtual Meeting Link indicates that some of the members of the Statutory
Further to the provisions of the Business Facilitation Audit Committee should have basic financial literacy
(Miscellaneous Provisions) Act 2022, which allows and be knowledgeable in internal control processes. In
public companies to hold meetings electronically, the view of the foregoing, nominations to the Statutory Audit
13th Annual General Meeting would be held virtually. Committee should be supported by the Curricula Vitae
The virtual meeting link for the AGM live streaming will of the nominees.
be made available on the company website at www.
sahcoplc.com and other social media platforms. 9. Re- Election and Election of Directors
In accordance with the provisions of Sec 285 of CAMA
4. Closure of Register of Members and Transfer Books 2020 the Directors to retire by rotation at the AGM
The Register of Members and Transfer Books of the are Mrs Laila St. Matthew-Daniel, Dr Bukola Bello-
Company will be closed from Monday, 27th May to Jaiyesinmi and Barr Kayode Filani, being eligible, are
Friday, 31st May 2024 (both days inclusive) for the offering themselves for re-election.
purpose of updating the Register of Members and
preparation for payment of Dividend. 10. Profile of Directors
The profile of all Directors is available for viewing on the
5. Dividend Company’s website at www.sahcoplc.com.
The Board of Directors of the Company has recommended
a dividend of 30k (Thirty Kobo) per share, which is 11. Rights of Securities Holders
payable less the appropriate withholding tax at the Shareholders have a right to ask questions not only at
time of payment. If the recommendation is approved the Meeting, but also in writing prior to the Meeting,
at the Meeting, the accounts of shareholders with the and such written questions must be submitted to the
appropriate e-dividend mandate, and whose names Company Secretary, on or before Friday, 7th June 2024.
appear on the Register of Members as at the close
12. E-Annual Report
of business on 24th May, 2024, will be credited on
The electronic version of this notice as well as the
Thursday, 13th June 2024.
annual report (e-annual report) for 2023 financial year
6. Unclaimed Share Certificates and Dividend Warrants can be downloaded from the Company’s website www.
Shareholders are hereby informed that a number of share sahcoplc.com. The e-annual report will be emailed to all
certificates and dividend warrants have been returned to Shareholders who have provided their email addresses
the Registrars as ‘unclaimed’. Any shareholder affected to the Registrars. Shareholders who wish to receive the
by this notice is advised to contact the Company’s e-annual report are kindly requested to send an email to
Registrars, Apel Capital Registrars Limited, 8, Alhaji [email protected].
Bashorun Street, Off Norman Williams Street, Ikoyi,
Lagos, Nigeria.
It’s my pleasure to present a

brief overview of our company’s
operational and business
performance for the year 2023.
Barrister (Dr.) Taiwo Afolabi

Chairman
CHAIRMAN’S SPEECH
Our Valued Shareholders, Board Members, One, international prices of oil, gas, and food have returned
to late 2021 levels eliminating a powerful driver of
Management Team of SAHCO Plc, inflation. However, retail prices in many countries remain
Distinguished Guests,Gentlemen of the higher than pre-pandemic averages, putting pressure on
Press, Ladies and Gentlemen. household budgets.
Two, the United States, comprising a quarter of the world

economy, has displayed resilience throughout two years of
rising consumer price inflation (April 2020–June 2022),
On behalf of the Board of Directors, Management, and despite a year of blanket disinflation policies (11 interest
Staff, I welcome you all to the 2023 Annual General rate hikes in 18 months) and sporadic financial market
Meeting of our dear company, Skyway Aviation Handling disruptions.
Company Plc.
Three, in China, the lifting of the remaining COVID-19-
It’s my pleasure to present a brief overview of our related restrictions has helped sustain the recovery which
company’s operational and business performance for the began in 2022 and which enabled a revamp of industrial
year 2023. production.
2023 Global Economic Review Four, concern over growth prospects in China risks
The year started as predicted with slow economic growth, overshadowing the deteriorating economic health of the
as the world continued to feel the impact of the Russia- European economy.
Ukraine war.
2023 Nigeria Economic Review
As of the first quarter of 2023, it was expected that When we bring it home, I will describe 2023 as a bit topsy-
China’s reopening would pave the way for a faster-than- turvy economic year for us. The cosmetic redesigning and
expected global economic recovery while global inflation subsequent scarcity of cash that heralded the first quarter
was expected to fall to 6.6 percent in 2023 and 4.3 of 2023 was a major economic challenge nationwide.
percent in 2024. According to PwC report, the global That development led to small businesses closing down
economy was set to grow by 1.6% in 2023, driven largely due to a lack of cash by patrons/customers.
by China’s re-opening following a prolonged period of
lockdowns and strong expected growth in India and other In the midst of the cashless policy chaos came the 2023
emerging economies. general elections. Money politics has become a tradition
in the country and was reflected once again in that poll.
As the global oil market was still readjusting to the
supply cuts by OPEC+ and the aftermath of the Russian
aggression in Ukraine, an escalation in geopolitical
Our company’s
tensions in Israel and Gaza kept the oil market on the
edge since the last quarter of 2023.
revenue stood at
N16.5b
According to the United Nations Conference on Trade and
Development (UNCTAD) in its Trade and Development
Report 2023, four key factors played a huge part in the
global economic performance in 2023.
CHAIRMAN’S SPEECH Cont’d
We won’t relent in investing in state-of-the-art equipment to help

meet our customers’ needs. That has been one of our unique selling
points over the years and 2024 will not be any different.
After the general elections came the real economic The year witnessed a significant turnaround in air travel,
challenge. The issue of fuel subsidy removal almost rebounding strongly from the setbacks of the global
plummeted the economy instantly. Prices of transport COVID-19 pandemic. The International Air Transport
fares, food, and other daily commodities skyrocketed and Association (IATA) reported substantial growth in the
more people dropped below the poverty level. industry, with global air travel demand in November
2023 reaching 99.1% of the levels observed in November
The new energy prices did not only affect the daily lives of 2019. During the same month, this near-full recovery was
households but also the operational viability of businesses. strengthened by a 29.7% year-on-year increase in revenue
The increased energy costs added to the financial burden passenger kilometres (RPK). A significant contribution to
and posed challenges to businesses’ sustainability and this growth came from the Asia-Pacific region, which saw
growth prospects. a remarkable 63.8% increase in year-over-year results,
leading all regions in recovery.
The agricultural sector, which has been a stronger source
of our GDP, also suffered a setback during the year in Domestic air travel also showed impressive gains, with
review. As the government of the day was taking key steps a 34.8% year-on-year increase, surpassing 2019 levels
in addressing the cost of food prices other factors tried to by 6.7%. China played a significant role in this surge, as
set us back, including banditry and kidnapping. Farmers its domestic travel rose by 272% following the easing of
were not going to farm, the road wasn’t safe to transport COVID-19 restrictions. In the United States, domestic air
produce to the market, all these led to scarcity of food travel increased by 9.1% in November 2023 compared
items and higher costs of available ones. to November 2019, driven by strong demand for the
Thanksgiving holiday.
We may want to also consider the impact of “Japa” in our
health, IT and manufacturing sectors. We lost many of our This resurgence in international and domestic air travel
best hands at these sectors because young ones want to has positively impacted the aircraft leasing market. As
seek greener pastures outside Nigeria. forecasted by Technavio, this market is projected to grow
significantly, with an anticipated increase of $19.46 billion
The Federal Government is currently tackling this with from 2022 to 2027 and a compound annual growth rate
various economic reforms that have been instituted as of 9.48%.
well as the appointment of the new CBN governor and
economic reform committee members. SAHCO’s Operational and Business Performance for
2023
2023 Global Aviation Performance Regardless of the challenges we faced during the year in
In 2023, the aviation industry demonstrated significant review, it is my pleasure to inform you that we were able
resilience and adaptability in a challenging global to record some positive points in our performance.
economic environment. The year was marked by economic
recovery, technological innovation, and strategic shifts in In our last AGM, we announced total revenue of about
airline operations. N11.1 billion for 2022, but as of the end of the 2023
CHAIRMAN’S SPEECH Cont’d
financial year, our company’s revenue stood at N16.5

billion. We have also grown our gross profit from N4.3 We improved our stakeholder
billion in 2022 to N8.2 billion in the year under review.
engagement strategy with a
Our asset base is not excluded from the impressive
performance of our company, as our total assets currently renewed vigour, as we forged
stand at N34 billion, a massive leap from the N29.2
billion we recorded in 2022.
beneficial partnerships and
Ladies and gentlemen, you will have more details about
relationships with key groups like
the financial performance of the company when the regulators, customers, agents,
audited financial report is presented.
and unions.
During the year in review, we invested in eco-friendly
equipment, a new trend in the industry that has kept us
at par with other renowned international ground handling
and aviation cargo companies.
board over the years. We don’t take your support and
We improved our stakeholder engagement strategy with a encouragement for granted. Be assured we are working
renewed vigour, as we forged beneficial partnerships and hard to make your company great and to generate a better
relationships with key groups like regulators, customers, dividend for you.
agents, and unions.
To the board members, you have demonstrated visionary
Our staff were not left out of this all-inclusive strategy. leadership and guidance not just during the year in review
Regular engagements, consultations, and training helped but in previous years. I thank you.
us improve their capacity to contribute substantially to the
growth and profitability of the company. And to our wonderful staff who show up to work
every day and give their best just to keep the business
All these positive steps, you will agree with me, have going, I appreciate you all. You all are heroes and your
yielded enormous results for us as a company. commitment, loyalty, and steadfastness to the company
do not go unnoticed.
Future Growth
In this business year, we wish to reiterate our commitment Without the clients, there is no business. This is to
to positioning our dear company for better and improved appreciate all our clients, both old and new, for your
profitability and keeping customers happy. For the abiding faith in our company. While we hope we have
shareholders, we are working for you and we can assure added value to your business, we promise to keep
you that your investment in our business is secured and improving our standards to your satisfaction.
your returns will be bountiful.
Before I close, let me, on behalf of the board, formally
We won’t relent in investing in state-of-the-art equipment welcome the new Managing Director, Mrs. Adenike
to help meet our customers’ needs. That has been one of Aboderin, on board. Your appointment is a testament to
our unique selling points over the years and 2024 will not the board’s confidence in your leadership ability and we
be any different. wish you a great and profitable tenure.
Conclusion I thank you all for your attention and wish you a successful
As I round up, I would like to commend the shareholders. AGM.
We greatly value your support for the management and
Thank you for joining us today at the

Annual General Meeting (AGM) of
Skyway Aviation Handling Company PLC
(SAHCO) for the year 2023. It is indeed a
pleasure to stand before you and reflect on
the achievements of the past year, as well
as share our strategic vision for the future.
Mr. Basil Agboarumi

Managing Director
(Resigned w.e.f 31st January 2024)
MANAGING DIRECTOR/CEO’s SPEECH
First and foremost, I extend my heartfelt gratitude to our will have an impact on discretionary travel if sustained
esteemed shareholders, distinguished board members, through the next peak leisure travel season.
dedicated staff, and all stakeholders who have played a
crucial role in our success. Your unwavering support has According to IATA, as the airline industry looks forward to
been the driving force behind SAHCO’s accomplishments, taking delivery of more than $100 billion of new aircraft
and we are truly grateful for your commitment. this year, lessors, lenders, investors and rating agencies will
need to look beyond the near-term to ensure that sufficient
On a personal note, I am honored to announce that this and affordable liquidity is available for deployment.
marks my final AGM as the Managing Director/CEO of
SAHCO PLC. Serving in this role has been a privilege, NIGERIA ECONOMY
and I am proud of the strides we have made together According to the Nigerian Bureau of statistics, Nigeria
as a company. As we transition to a new chapter, I am Gross Domestic Product (GDP) grew by 2.51% (year-on-
confident that SAHCO is in capable hands. year) in real terms in the second quarter of 2023. This
growth rate is lower than the 3.54% recorded in the
It is my pleasure to introduce to you our new Managing second quarter of 2022 and may be attributed to the
Director/CEO, Mrs. Adenike Aboderin. Mrs. Aboderin challenging economic conditions being experienced.
brings a wealth of competence and experience in the
aviation sector, and I have full confidence that under her The performance of the GDP in the second quarter of
leadership, SAHCO will continue to thrive and reach new 2023 was driven mainly by the Services sector, which
heights. You are in safe hands, and I am excited about the recorded a growth of 4.42% and contributed 58.42% to
promising future that lies ahead for our company. the aggregate GDP.
AVIATION INDUSTRY The agriculture sector grew by 1.50%, an improvement

Last year’s Industry Outlook predictions were generally from the growth of 1.20% recorded in the second quarter
upbeat, so it is particularly gratifying to report that most of 2022. The growth of the industry sector was -1.94%
of them came to pass. Perhaps the most important relative to -2.30% recorded in the second quarter of
prediction was that the world would come to treat 2022. In terms of share to the GDP, agriculture, and the
COVID as an endemic disease, rather than a pandemic, industry sectors contributed less to the aggregate GDP
paving the way to the lifting of travel restrictions and the in the second quarter of 2023 compared to the second
restoration of other personal freedoms. Until very recently, quarter of 2022.
China was the only major hold-out for a zero-COVID policy
(also another prediction), but the reversal of the country’s Data from the National Bureau of Statistics (NBS) shows
entire COVID policy, announced in early December, has that Aviation Sector has contributed about 117 billion
eventually set China on a path to normality, albeit with Naira which is 4% to the National GDP in the first quarter
some major concerns to overcome along the way. of 2023; it supports about 200,000 jobs and pays about
8.5 billion Niara in tax annually.
With most countries now welcoming overseas visitors
once again without requiring Covid testing or quarantine,
passenger’s demand has continued to accelerate, Our total assets
providing airlines with the unexpected challenge of having currently stand at
to scramble to return to sufficient capacity to service in
order to meet the demand. Most, if not all, readers will
N34b
have noticed how much more expensive air fares have
become – 23% higher on average compared to 2021,
according to IATA. Whilst providing a financial boost for
the airlines at this point in the Covid recovery process, this
MANAGING DIRECTOR/CEO’S SPEECH Cont’d
we have also gone green by acquiring more environmentally/eco-

friendly electric-powered Baggage Tow Tractors, Forklifts amongst
others, I am happy to report that we have sustained that trajectory by
investing N2.282 billion naira in equipment in 2023.
MAJOR INITIATIVES INVESTMENT IN ULTRA-MODERN EQUIPMENT

Financial Performance During the 2022 AGM, I reported that we have also gone
In the year under review, we recorded revenue of green by acquiring more environmentally/eco-friendly
N16,546,685,000.00 against the N11,125,330,000.00 electric-powered Baggage Tow Tractors, Forklifts amongst
recorded in 2022. However, SAHCO PLC made a gross others, I am happy to report that we have sustained that
profit of N8,195,984,000.00 in 2023 compared to trajectory by investing N2.282 billion naira in equipment
N4,366,047,000.00 recorded in 2022. in 2023.
Our Total assets for 2023 is N34,065,897,000.00 Conclusion:

against N29,218,539,000.00 recorded in 2022. In conclusion, the year 2023 has been a year of
The recorded growth was achieved as a result of growth, resilience, and strategic positioning for SAHCO.
commitment of our workforce and resolve to always offer I am confident that with the unwavering support of our
best Aviation Ground Handling Services to our Clients shareholders, the dedication of our staff, and the guidance
across all the commercially operated Airports in Nigeria. of our esteemed board, we will continue to soar to new
heights in the coming years.
New Clients won and business improvement in the
period under review I would like to extend my gratitude to each and every one
zz Ibom Air Regional operations (Accra) of you for your trust and confidence in SAHCO. Together,
we will navigate the challenges and seize the opportunities
zz Ethiopian Airlines Cargo ramp operation
that lie ahead.
zz Air Peace International operations (Tel Aviv, Mumbai
and London) Thank you.
zz Extension of British Airways contracts to five years
zz Rano Air additional station (Abuja)
zz Green Africa extended its routes (Ibadan and Sokoto)
zz NG Eagle domestic operations increased its frequency
zz Air Peace extended its routes
zz Uganda Airlines’ International operations
zz Bristow contract renewed
zz United Nigeria contract renewed
zz Overland contract renewal
FINANCIAL HIGHLIGHTS
For The Year Ended 31 December 2023
2023 2022 Increase / (Decrease)

N’000 N'000 N'000 %
Statement Of Financial Position Items:
Total Assets 34,065,897 29,218,539 4,847,358 17
Non-Current Assets 20,968,577 20,001,363 967,214 5
Total liabilities 11,285,550 9,680,618 1,604,931 17
Borrowings 3,496,527 3,635,450 (138,923) (4)
Retained Earnings 6,396,426 4,665,090 1,731,336 37
Ordinary Share Capital 676,790 676,790 - -
Equity 22,780,348 19,537,921 3,242,426 17
Non-current liabilities 6,409,158 5,679,297 729,861 13
Statement Of Profit Or Loss And Other Comprehensive Income Items:

Revenue 16,546,685 11,125,330 5,421,355 49
Direct Cost 8,350,701 6,759,284 1,591,417 24
Gross Profit 8,195,984 4,366,047 3,829,937 88
Administrative Expenses 5,545,464 4,074,381 1,471,083 36
Profit Before Income Tax Expenses 2,630,287 469,583 2,160,704 460
Profit for the year 1,954,678 309,336 1,645,342 532
Total Other comprehensive Income 1,511,090 155,287 1,355,803 873
Ratios:
Gross Profit % 50 39 10 26
Direct Cost to Revenue Ratio % 50 61 (10) (17)
Administrative Expenses to Revenue % 34 65 (31) (48)
Ratio
Net Profit % 12 3 9 325
Current Ratio 2.1 2.69 2.30 0 17
Return on Capital Employed % 9 2 7 442
Gearing % 18 13 6 47
Per Share Data

Earnings Per Share Kobo 144.41 22.85 122 532
Dividend Per Share Kobo 16.50 16.50 - -
Net Assets Per Share Kobo 1,683 1,443 240 17
Number of Issued Ordinary Share Units 1,353,580,000 1,353,580,000 - -
Capital
Market Capitalisation Naira 34,313,253,000 7,173,974,000 27,139,279,000 378
Market price per share Naira 25.35 5.30 20 378
Current ratio indicates the company’s ability to pay its current liabilities from its current assets.
Return on capital employed (ROCE) ratio measures the company’s profitability and the efficiency with which its capital is
employed.
Gearing ratio measures the proportion of the company’s borrowed funds to its equity.
Earnings per share and net assets per share are based on profit after income tax expenses and net assets respectively and the
number of issued and fully paid ordinary shares at the end of each financial year.
FINANCIAL HIGHLIGHTS Cont’d
STATEMENT OF FINANCIAL POSITION ITEMS
2023 2023
40
Millions
35
30
25
20
15
10
5
0
ets
ts
ies
s
ta
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itie
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ar
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No
din
No
Or
STATEMENT OF PROFIT OR LOSS AND OTHER

COMPREHENSIVE INCOME ITEMS
2023 2023
18
Millions
16
14
12
10
8
6
4
2
0
e
st
fit
es
es
e
ea
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To
THE BOARD
The Board is made up of a group of

individuals from diverse academic and
professional background. The Board size
is in line with Corporate Governance and
International best practices. Ultimate
responsibility for governance rests with
the board of directors of the company,
who ensure that appropriate controls,
systems and practices are in place.
Barrister (Dr.) Taiwo Afolabi

Chairman
Mr. Basil Agboarumi1 Mrs Adenike Aboderin2

Managing Director Managing Director
Dr. Oluropo Owolabi Mr. Oladipo Kayode Filani Captain Shehu Usman Iyal
Non-Executive Director Non-Executive Director Non-Executive Director
1 Mr. Basil Agboarumi Managing Director (Resigned w.e.f 31st January 2024)
2 Mrs Adenike Aboderin (Appointed w.e .f 1st February 2024)
OUR DIRECTORS Cont’d
Dr. Bukola Bello Jaiyesimi Mrs. Laila Jean St. Matthew-Daniel Mr. Anogwi Anyanwu
Independent Non-Executive Director Independent Non-Executive Director Independent Non-Executive Director
Mr. Babatunde Afolabi Mr. Olaniyi Adigun3 Mrs. Boma Ukwunna

Executive Director Executive Director Executive Director
Mr. Herbert Odika4 Mr Abiodun Adegbesan5 Jesuyemisi Odeyemi

Executive Director Executive Director Company Secretary
3 Mr. Olaniyi Adigun Executive Director (Resigned w.e.f 31st January 2024)
4 Mr. Herbert Odika Executive Director (Appointed w.e.f 7th June 2023)
5 Mr Abiodun Adegbesan Executive Director (Appointed w.e.f 1st February 2024)
REPORT OF THE DIRECTORS

For The Year Ended 31 December 2023
The Directors are pleased to present their annual report on the state of affairs of the Company (also referred to as SAHCO
PLC) together with the financial statements for the year ended 31 December 2023.
1 PRINCIPAL ACTIVITIES
The principal activities of the Company include provision of services including aircraft/ramp handling, cargo handling,
passenger handling, premium lounge, aviation security and baggage reconciliation.
2 LEGAL FORM
On 3rd of December, 2009, SIFAX Shipping Limited and Global Apex Logistic Limited through Skyway Aviation
Handling Company Limited acquired 100% interest of the Federal Government in Skypower Aviation Handling
Company Limited due to the privatisation of the company.
Skyway Aviation Handling Company Limited became a Public Limited Company on 5th October, 2018.
The Corporate Headquarters is located at Skyway Aviation Handling Company Plc. Complex, Cargo Terminal, Murtala
Muhammed International Airport, Ikeja, Lagos State.
3 RESULT FOR THE YEAR

The profit after Income tax expenses recorded by the Company for the year ended 31 December, 2023 was NGN
1.955 billion (31 December 2022: NGN309 million). Highlights of the Company’s operating results for the year
ended 31 December 2023 is as follows: -
31 December 2023 31 December 2022

N'000 N'000
Revenue 16,546,685 11,125,330
Profit Before Income Tax Expenses 2,630,287 469,583

Income Tax Expense (675,609) (160,247)
Profit After Income Tax Expenses 1,954,678 309,336
Total Other Comprehensive Income 1,511,090 155,287
Total Comprehensive Income 3,465,769 464,623
Earnings Per Share (Kobo) 144.41 22.85
4 OPINION OF THE DIRECTORS

In the opinion of the Board of Directors: -

i. The Financial Statements of the Company together with the notes therein are drawn up so as to give a true and fair
view of the financial position of the Company as at 31 December, 2023 and of the financial performance, changes
in equity and cash flows for the year then ended and;

ii. As at the date of reporting, there are reasonable grounds to believe that the Company will be able to pay its
liabilities as and when they fall due.
REPORT OF THE DIRECTORS Cont’d
5 DIRECTORS AND DIRECTORS’ INTEREST

The names of the Directors that served during the year under review are detailed on page 2. The interests of the
Directors in the Issued Ordinary Share Capital of the company are listed below in accordance with Section 301 of
the Companies and Allied Matters Act, CAP C20 LFN 2020 and the listing requirements of the Nigerian Exchange
Limited:
Number of shares held (Unit)

As at 31 December 2023
Directors Direct Indirect
Barr. Dr. Taiwo Afolabi 379,041,989 443,331,091 (SIFAX Shipping Ltd)

Dr. Bukola Jaiyesimi Bello - -
Mrs. Laila Jean St. Matthew-Daniel - -
Dr. Oluropo Owolabi 5,332,500
4,000,000 4,000,000 (Through Kaydidson Nigeria Limited)
Mr. Kayode Filani 4,000,000 (Through KFA Investment and Property
Dev. Co. Ltd.)
Mr. Babatunde Afolabi - -
Captain Shehu Iyal - -
Mr. Anogwi Anyanwu 50,000 -
Mr. Basil Agboarumi 55,000 -
Mr. Olaniyi Adigun - -
Mrs. Boma Ukwunna - -
Number of shares held (Unit)

Directors Direct Indirect
Barr. Dr. Taiwo Afolabi 379,041,989 443,331,091 (SIFAX Shipping Ltd)

Dr. Bukola Jaiyesimi Bello - -
Mrs. Laila Jean St. Matthew-Daniel - -
Dr. Oluropo Owolabi 5, 332,500 -
4,000,000 4,000,000 (Through Kaydidson Nigeria Limited)
Mr. Kayode Filani 4,000,000 (Through KFA Investment and Property
Dev. Co. Ltd.)
Mr. Olutoye Ariyo - -
Mr. Babatunde Afolabi - -
Captain Shehu Iyal - -
Mr. Anogwi Anyanwu 50,000 -
Mr. Basil Agboarumi 55,000 -
Mr. Olaniyi Adigun - -
Mrs. Boma Ukwunna - -
6 APPOINTMENT / RESIGNATION OF DIRECTORS

There was an appointment of one new member of the Board of Director during the year.

Appointed
i Mr. Herbert Odika

7 ANALYSIS OF SHAREHOLDING
The shareholding structure of the Company is as stated below:
Num. of Holders Cumulative
Range of Shareholding Holders Holder % Cumulative Units Units % Units
1 - 1,000 675 46.26456477 675 345,832 0.03 345,832

1,001- 5,000 382 26.18231666 1,057 1,168,250 0.09 1,514,082
5,001- 10,000 128 8.773132282 1,185 1,154,414 0.09 2,668,496
10,001- 50,000 169 11.58327622 1,354 4,406,470 0.33 7,074,966
50,001- 100,000 47 3.22138451 1,401 4,054,699 0.30 11,129,665
100,001- 500,000 34 2.330363263 1,435 7,725,646 0.57 18,855,311
500,001- 1,000,000 6 0.411240576 1,441 4,477,017 0.33 23,332,328
1,000,000- 5,000,000 9 0.616860864 1,450 28,929,100 2.14 52,261,428
10,000,001- 50,000,000 5 0.34270048 1,455 178,367,932 13.18 230,629,360
50,000,001-100,000,000 4 0.274160384 1,459 1,122,950,640 82.96 1,353,580,000
Grand Total 1,459 100% 1,353,580,000 100%
Num. of Holders Cumulative
Range of Shareholding Holders Holder % Cumulative Units Units % Units
1 - 1,000 675 46.26456477 675 345,832 0.03 345,832

1,001- 5,000 382 26.18231666 1,057 1,168,250 0.09 1,514,082
5,001- 10,000 128 8.773132282 1,185 1,154,414 0.09 2,668,496
10,001- 50,000 169 11.58327622 1,354 4,406,470 0.33 7,074,966
50,001- 100,000 47 3.22138451 1,401 4,054,699 0.30 11,129,665
100,001- 500,000 34 2.330363263 1,435 7,725,646 0.57 18,855,311
500,001- 1,000,000 6 0.411240576 1,441 4,477,017 0.33 23,332,328
1,000,000- 5,000,000 9 0.616860864 1,450 28,929,100 2.14 52,261,428
10,000,001- 50,000,000 5 0.34270048 1,455 178,367,932 13.18 230,629,360
50,000,001-100,000,000 4 0.274160384 1,459 1,122,950,640 82.96 1,353,580,000
Grand Total 1,459 100% 1,353,580,000 100%
SUBSTANTIAL INTEREST IN SHARES

According to the Register of Members as at 31 December, 2023, the following shareholders of the Company held
more than 5% of the issued ordinary share capital of the Company;
2023 2022
Num. of share Shareholding (%) Num. of share Shareholding (%)
Sifax Shipping Company Limited 443,331,091 32.75 443,331,091 32.75

Afolabi Taiwo 379,041,989 28.00 379,041,989 28.00
Afolabi Folashade 241,816,960 17.86 241,816,960 17.86
1,064,190,040 78.62 1,064,190,040 78.62
In line with the Nigeria Exchange Limited’s rules on the requirement for all listed companies to maintain a free float of
20% and above, the issued Ordinary Share capital of the Company in free float is 21.38% as at 31 December, 2023.
8 DIVIDEND
The Board of Directors, subsequent to the reporting date, recommended the payment of a dividend of 30 kobo
(2022: 16.5 kobo) per share on the issued ordinary share capital of 1,353,580,000 ordinary shares, amounting to
NGN406,074,000 (2022:NGN223,340,700). The dividend proposed is subject to the approval of shareholders at
the next Annual General Meeting (AGM). Withholding tax will be deducted at the point of payment.
9 EMPLOYMENT AND EMPLOYEES

(a) Employment of disabled persons:
The Company has an employment policy which does not discriminate against the disabled persons.
(b) Health Safety and Welfare

The Company is fully committed to employees’ well being and would continue to seek better ways of guaranteeing
their well being.
(c) Employees Involvement and Training:

The Company attaches great importance to staff training and encourages employees to pursue self development that
will impact positively on the Company’s service delivery. The Company is committed to keeping employees as fully
informed as possible regarding its focus, performance and progress.
10 GIFTS AND DONATIONS

In accordance with Section 43 (2) of the Companies and Allied Matters Act CAP C20 LFN, 2020, the Company did
not make any donation or gift to any political party, political association or for any political purpose in the course of the
year under review.
The Company made contributions to charitable and non-political organisations amounting to N122,150,899
(2022:N71,649,375 ) during the year. Details of the Charitable Gifts and Donations are as follows;
Amounts
N
AAA Foundation 12,000,000

Others 110,150,899
122,150,899
Amounts
N
AAA Foundation 12,000,000

Others 59,649,375
71,649,375
11 PROPERTY, PLANT AND EQUIPMENT Mrs. Adenike Aboderin was appointed with effect
Movements in property, plant and equipment during from 1 February 2024 as Managing Director and
the year are shown in Note 13. In the opinion of Mr Abiodun Adegbesan appointed with effect from 1
the Directors, the market value of the Company’s February 2024 as Executive Director.
property, plant and equipment are not less than the
value shown in the financial statements. 13.3 Mrs Adenike Aboderin was appointed as Managing
Director/CEO effective 1st February, 2024. Mr Abiodun
12 ACQUISITION OF OWN SHARES Adegbesan was appointed as Executive Director effective
The Company did not purchase any of its own shares 1st February, 2024.
during the year (2022-Nil).
14 WHISTLE BLOWING POLICY
13 EVENTS AFTER THE REPORTING PERIOD
The Board encourages the exposure of unethical
practices and all reported cases are investigated while
13.1
A dividend of 30 kobo (2022-16.5kobo) was the whistle blower is protected. SAHCO’s whistle
proposed by the directors for approval at the Annual blowing policy is displayed on the Company’s website
General Meeting . This will result in a dividend and strategic places at the Head Office. SAHCO Plc.
payment of NGN406,074,000 once it is approved conducts its business with integrity and diligence
by the shareholders at the Annual General Meeting. and with total consideration for the interest of the
shareholders and other stakeholders.
13.2
The Managing Director - Mr. Basil Agboarumi
and Executive Director - Mr Olaniyi Adigun retired 15 COMPLAINTS MANAGEMENT POLICY
with effect from 31 January 2024 in line with the SAHCO Plc is committed to providing high standards
Corporate Governance policy of the Company and of services for shareholders including a platform for
efficient handling of shareholders’ complaints and external stakeholders to respect the safeguarding of
enquiries, enabling shareholders to have shareholder confidential information and potentially price sensitive
related matters acknowledged and addressed, information.
providing sufficient resources to ensure the
shareholders’ complaints and enquiries are dealt with 17 SAFETY POLICY
adequately, and in an efficient and timely manner and
SAHCO is committed to ensuring the Conduct
facilitating efficient and easy access to shareholders’ and Provision of Safe and Efficient Operations for
information. our Customer Airlines, Aircraft Operators and our
Employees. All Managers and Employees are required
The Company has therefore formulated a Complaint to have Safety considerations as of prime importance
Management policy designed to ensure the complaints in their job functions.
and enquiries from the Company’s shareholders are
managed in a fair, impartial, efficient and timely A Safe operation is the result of combining qualified
manner. staff, well-maintained Equipment, appropriate
Processes and procedures, adequate Training and

Furthermore, this policy has been prepared in Supervision. As Safety is everyone’s responsibility,
recognition of the importance of effective engagement personnel safety reporting process on hazards,
in promoting shareholders / investors’ confidence in anomalies and deficiencies is established. All reported
the company. issues are investigated, are reviewed and amended to
improve SAHCO’s Management System.
This policy sets out the broad framework by which
Skyway Aviation Handling Company Plc. (“SAHCO This Safety culture is enhanced by embracing human
PLC”) and its Registrar will provide assistance factors principles and includes encouraging personnel
regarding shareholder issues and concerns. It also to report related errors/ incidents. SAHCO embraces
provides the opportunity for Skyway Aviation Handling this Just Reporting Policy, whereby no action shall
Company Plc.’s shareholders to provide feedback to be taken against one reporting an unintentional error,
the company on matters that affect shareholders. unless such report indicates beyond reasonable
doubt, an illegal act, gross negligence or deliberate
This policy only relates to the Company’s shareholders willful disregard for regulations or procedures.
and does not extend to its customers, suppliers or
other stakeholders. The Management of SAHCO is committed to support
the Management of Safety through allocation
16 INSIDER INFORMATION POLICY of resources and to the principles stated in the
The Company has a policy on insider information safety policy. This policy shall be communicated,
and prohibition of Insider dealings as required by understood, implemented at all levels within the
rules and regulations and the policy has been made Organization and shall be periodically reviewed. The
publicly available to all stakeholders. Management of SAHCO is totally committed to the
principles stated in this Safety Policy.
Skyway Aviation Handling Company Plc.’s Insider
Information policy is to generally ensure the board It is the responsibility of each and every SAHCO
members, employees and its external stakeholders employee to be conscious of the security of its
who have knowledge of confidential and potentially property, its Customers, themselves, and protection
price sensitive information are aware of the prohibition of SAHCO business interests at all times.
imposed by law against using, disclosing (other than
in the normal course of the performance of their 18 QUALITY POLICY
duties) or encouraging transactions in securities on It is the objective of SAHCO to provide Safe, Reliable
the basis of such insider information. In addition to and an Efficient Standard of Customer Service. It
obligations imposed by law, Skyway Aviation Handling has chosen Quality as a way and means to realize
Company Plc. wants board members, employees and its goals and thus continuously improve its services,
to provide what really meets the aspirations of its exposed to hazards arising from the use and abuse
Customer Airlines, Aircraft operators and exceeds of alcohol and/or drugs. We have a “zero tolerance”
their expectations. policy for the consumption of alcohol or the use of
non-prescriptive drugs whilst on duty. All employees

SAHCO is committed to maintaining the highest are required to report for work in a fit and proper
standards of Quality and performance in its condition in order to perform their duties in a safe
Operations and Customer Service to accomplish this and efficient manner. Any employee found under
goal; and will employ the latest technology, methods the influence of alcohol or non-prescriptive drugs /
and procedures. psychoactive substances - drugs that are considered
clinically harmful to disorient normal human
19 NON-PUNITIVE POLICY (NO BLAME POLICY) functioning and endanger operational safety shall be
SAHCO encourages a voluntary incident reporting removed immediately from safety critical functions
system to facilitate the collection of information and strict disciplinary action including termination of
that may not be captured by a mandatory incident services will be initiated against the staff.
reporting system and provides immunity from
disciplinary action for employees that report Safety All employees have a legal obligation not to endanger
and Security deficiencies, hazards or occurrences. themselves or others because of being in an alcohol
This policy is in the true spirit of ICAO Annex 13 or drug impaired condition, either within or outside
document. the workplace. Employees are required to disclose to
their manager or supervisor the use of any prescriptive

All SAHCO Personnel are encouraged to report drugs or medicines for the treatment of sickness or
Safety concerns and errors and to cooperate with illness that may affect their performance or behavior.
the investigation of incidents. The Primary aim is to This is extremely important for personnel assigned
identify the causes and eliminate them, and not to duties in the operational area and safety critical
identify and punish the individuals concerned”. It is a functions. Such personnel shall be redeployed
SAHCO policy that an unpremeditated or inadvertent to functions that are not directly associated with
lapse will not incur any punitive action, but a breach operations.
of professionalism may do so. It may be necessary
to suspend an individual pending an investigation. 22 SEXUAL HARASSMENT POLICY
This should not be interpreted as punitive action but,
SAHCO is committed to ensuring that all staff
rather, as a precautionary measure. enjoys a workplace free from sexual harassment.
Our commitment is to create and sustain a work
It is reiterated that a voluntary incident reporting environment that supports mutual trust and assists
system is non-punitive and affords protection to the each individual to reach his or her maximum potential.
sources of information i.e. the concerned employee. Sexual harassment is considered to be a form of
However, in the case of willful negligence, intentional unacceptable behaviour that will not be tolerated
violation and the use of illicit substances the non- under any circumstances. Individuals found to have
punitive immunity will not apply. breached this policy or found engaging in a sexually
harassing conduct are subjected to appropriate
20 SECURITY POLICY disciplinary action that may include instant dismissal.
It is the responsibility of each and every SAHCO
employee to be conscious of the security of its This policy applies to all staff including Management,
property, its Customers, themselves, and protection Supervisors, full time, part time, temporary, contract,
of SAHCO business interests at all times”. and casual employees.
21 ALCOHOL AND DRUG POLICY 23 ENVIRONMENTAL POLICY

SAHCO is committed to providing and maintaining a SAHCO aims to ensure that the highest standard of
working environment in which its employees are not environmental care is achieved and will continually
seek new ways to maintain and improve these high adoption of the going concern basis of accounting in
standards. Our employees must ensure that all preparing the annual financial statements.
reasonable steps are taken to improve our impact
upon the environment and to ensure compliance with 26 APPROVAL OF THE FINANCIAL STATEMENTS
all relevant environment legislation. Every employee These financial statements for the year ended 31
through his daily work has a potential impact on our December, 2023 have been approved for issue by the
environment. As an employee we expect all staff to Directors on 14 March , 2024.
adhere to the company’s philosophy and policies in
relation to the environment. 27 AUDITORS
Messrs. Gbenga Badejo & Co. (Chartered Accountants),
24 INTEGRITY having satisfied the relevant corporate governance

The Company strives to maintain the highest rules on their tenure in office, have indicated their
standards of integrity in its operation. Accordingly, willingness to continue in office as auditor to the
the Company condemns and does not give nor Company. In accordance with Section 401 (2) of the
receive directly or otherwise any bribes, gratifications Companies and Allied Matters Act of Nigeria, 2020
or obtain improper advantages for any business or therefore, the auditor will be re-appointed at the next
financial gains. It is our policy to avoid any situation annual general meeting of the Company .
that will impact negatively on our operations.

25 GOING CONCERN STATUS BY ODER OF THE BOARD

The Directors have made assessment of the
Company’s ability to continue as a going concern and
have no reason to believe that the Company will not
remain a going concern in the years ahead.
Resulting from the above, the directors have a Jesuyemisi Odeyemi

reasonable expectation that the company has Company Secretary
adequate resources to continue operations for the FRC/2023/PRO/ICSAN/002/887904
foreseeable future. Thus, directors continued the Dated this: 14 March, 2024

CORPORATE GOVERNANCE REPORT
Skyway Aviation Handling Company Plc. is committed 4. Dr. Oluropo Owolabi

to observing high standards of Corporate Governance. 5. Mrs. Laila St. Matthew-Daniel
The Board of Directors recognises the importance of 6. Captain S.U Iyal
applying best Corporate Governance principles, its
valuable contribution to long term business prosperity and Independent Director
accountability to its shareholders. 7. Mr. Anogwi Anyanwu
8. Dr. Bukola Bello Jaiyesimi
Consequently, the Company has undertaken to create 9. Mrs. Laila St. Matthew-Daniel
the institutional framework conducive to defending
the integrity of our directors and is convinced that, on Executive Director
account of this, the Board of “SAHCO PLC” is functioning 10. Basil Agboarumi (Resigned 2024)
in a highly effective manner. The Board will continue to 11. Mrs Adenike Aboderin (Appointed 2024)
challenge itself to improve the standard in areas where 12. Mr. Olaniyi Adigun (Resigned 2024)
the need for improvement is identified. 13. Mrs. Boma Ukwunna
14. Mr. Babatunde Afolabi
Relationship with Shareholders 15. Mr. Herbert Odika (Appointed 2023)
As a deliberate policy, SAHCO PLC maintains an effective 16. Mr Abiodun Adegbesan (Appointed 2024)
and candid communication with its shareholders which
enables them to understand the Company’s business, Board Structure and Independence
financial conditions and operating performance and trends. The Board is made up of a group of individuals from
The Board places considerable importance on effective diverse academic and professional background. The Board
communication with its shareholders as it recognises the size is in line with Corporate Governance and International
importance of ensuring an appropriate balance in meeting best practices. Ultimate responsibility for governance
their needs. The Company strives at all times to build rests with the board of directors of the company, who
enduring relationships with the shareholders. The Board ensure that appropriate controls, systems and practices
ensures that shareholders receive prior notice of meetings are in place. The company has a unitary board structure
and that all other statutory notices and information where the roles of Chairman and Chief Executive Officer
are communicated regularly. Shareholders can freely are separate and distinct in accordance with corporate
communicate their thoughts and recommendations governance best practices. The company’s Chairman
whenever they feel the need to do so by contacting the is a non-executive director. The majority of directors on
Company Secretary or the Managing Director/CEO. the Board are non-executive directors of which one is
an independent director; with no material relationship
Shareholders’ responsibilities with the company except as directors’. The number and
The shareholders’ role is to approve appointments to the structure of non-executive directors ensure that sufficient
board of directors and the external auditors as well as consideration and debate are brought to bear on decision
to grant approval for certain corporate actions that are thereby contributing to the efficient running of the board.
by legislation or the company’s articles of association
specifically reserved for shareholders. Their role is Working Procedures
extended to holding the board accountable and responsible The Board meets at least once every quarter. Additional
for efficient and effective corporate governance. meetings are scheduled whenever matters arise which
require the attention of the Board. Prior to meetings,
THE BOARD the company secretariat circulates the agenda for
The names of Directors who held office during the year the meeting along with all documents the Directors
and at the date of this report are as follows: would be required to deliberate upon. This enables the
Directors to contribute effectively at the Board Meetings.
Non-Executives Directors. The Board through the Company Secretary keeps detailed
1. Dr. Taiwo Afolabi minutes of its meetings that adequately reflect the Board’s
2. Mr. Kayode Filani discussions.
3. Dr. Bukola Bello Jaiyesimi
CORPORATE GOVERNANCE REPORT Cont’d
Constructive Use of Annual General Meeting Board Appointment Process

The notice of meeting is sent to shareholders at least To ensure the highest standards of corporate governance,
21 days before the AGM. The Directors encourage the Governance and Nominations Committee have the
the participation of shareholders at the AGM, and overall responsibility for the appointment process subject
are available both formally during the meeting and to final approval by the Board. The fundamental principles
informally afterwards for questions. The Chairperson of the process includes: evaluation of the balance of skills,
of each Committee including the Audit Committee and knowledge and experience on the Board, leadership needs
Governance and Nominations Committee are available to of the company and the ability of the candidate to fulfill
answer questions at the AGM. his/her skill and obligations as a Director.
Re-Election of Directors Board Authority

In accordance with the Section 285 of CAMA all directors A range of decisions are specifically reserved for the Board
shall retire from office at the first annual general meeting to ensure it retains proper direction and control of the
of the company and in every subsequent year, one third Company. The board is entitled to delegate some of these
of the Directors who are longest in office since their last functions to the Executive Directors who are responsible for
appointment or election are required to retire by rotation the day to day management of the business or to Committees
and, if eligible offer themselves up for re-election. The of the Board. The Delegation of Authority Policy sets the
Board has the power to appoint a new director and financial limits on the decisions that can be taken by
any director so appointed is subject to Shareholder Executive Directors and various Committees of the Board.
election at the next Annual General Meeting (AGM). The schedule of matters reserved for the Board includes
In line with the above all the directors are retiring and (but is not limited to) the following:
presenting themselves for re-election at the Company’s
first AGM. zz Strategy and objectives.
Appointment of Audit Committee zz Business plans and budgets
According to Section 404(4) of CAMA, all Public zz Changes in capital and corporate structure.
Companies are mandated to have a Statutory Audit
zz Accounting policies and financial reporting
Committee to ensure accounting and reporting
policies of the Company is in accordance with zz Internal controls
legal requirements and agreed ethical standards. zz Major contracts

The Committee shall have a maximum of six (6) members
zz Capital projects
of which three (3) shall be Shareholder representative
and three (3) (Non-Executive) directors. Therefore, zz Acquisitions and disposals
Shareholders are requested to vote to elect the nominees zz Board membership

to serve on the Audit Committee for the financial year.
The day-to-day operational management of the Company’s
1. Mrs. Samiat Odunuga (Shareholders’ Representative) activities is delegated to the Chief Executive Officer (CEO)
2. Mr. Ismaila Adamu (Shareholders’ Representative) and is supported by the Executive Director Sales and
3. Mr. Rotimi Aina (Shareholders’ Representative) Marketing, Executive Director Business Development, IT
& Strategy and Executive Director Cargo Services.
In addition to the three representatives of the Shareholders
to be elected at the meeting, the following two members of Board Duties and Responsibilities
the Board who are retiring and have presented themselves The Directors act in good faith, with due care and in the
for re-election, are being proposed as the two designated best interest of the Company and all its stakeholders. Each
Board Members of the Statutory Audit Committee for the Director is expected to attend and actively participate in
2023 financial year. Board meetings.
4. Mr. Anogwi Anyanwu (Director)

5. Mrs. Laila Jean St. Matthew-Daniel (Director)
The key terms of reference in the board’s mandate, which The Company does not prohibit its Directors from serving
forms the basis for its responsibilities, are to: on other boards. However, Directors should ensure that
other commitments do not interfere with the discharge
zz
annually review the corporate governance process of their duties and shall not divulge confidential or inside
and assess achievement against objectives; information about the Company.
zz
review its mandate at least annually and approve The board adopts the following best practice principles in
recommended changes; the discharge of its duties.
zz delegate to the chief executive or any director holding
any executive office or any senior executive any of zz The Company believes that the role of the Chairman
the powers, authorities and discretions vested in and Chief Executive Officer should be separate
the board’s directors, including the power of sub- and that the Chairman should be a Non-Executive
delegation; and to delegate similarly such powers, Director;
authorities and discretions to any committee as the
zz
To maintain appropriate balance of interest and
board may deem fit from time to time;
ensure transparency and impartiality, we have an
zz determine the terms of reference and procedures of
independent Director. The independent directors
all board committees and review their reports and is one who have no material relationship with the
minutes; Company beyond their directorship;
zz consider and evaluate reports submitted by members
zz Directors are to abstain from actions that may lead
of the executive; to “conflict of interest” situations; and shall comply
zz
review and monitor the performance of the chief fully with the Company’s Related Party Transactions
executive and the executive team; Policies;
zz approve the remuneration of non-executive directors
Board Meetings
on the board and board committees,
The Board and its Committee meets at a minimum, once
zz based on recommendations made by the remuneration every quarter and whenever they are deemed necessary.
committee, and recommend to shareholders for During the year under review, the Board met at various
approval; times to provide strategic directions, policy and leadership
zz
consider and approve capital expenditure in chaining the objectives of the Company. The Directors
recommended by the executive committee; are provided with comprehensive Board documentation
at least seven (7) days prior to each of the scheduled
zz consider and approve the annual financial statements,
meetings.
quarterly results and dividend announcements and

notices to shareholders, and consider the basis for
Dates of Board Meetings
determining that the group will be a going concern
January 26th 2023
as per the recommendation of the audit committee;
March 23rd 2023
zz assume ultimate responsibility for financial, April 25th 2023 (Virtual)
operational and internal systems of control, and July 20th 2023
ensure adequate reporting on these by committees to October 26th 2023
which they are delegated

Board meetings attendance:

Date of Meeting and Attendance
25/04/2023
NAMES OF BOARD MEMBERS 1/26/2023 3/23/2023 (Virtual) 7/20/2023 10/26/2023
NON-EXECUTIVE DIRECTORS
Barrister (Dr.) Taiwo Afolabi     
Dr. Bukola Bello Jaiyesimi     
Mrs. Laila Jean St. Matthew-Daniel     
Oluropo Owolabi     
Mr. Anogwi Anyanwu     
Mr. Oladipupo Kayode Filani     
Captain Shehu Usman Iyal     
EXECUTIVE DIRECTORS
Mr. Basil Agboarumi     
Mr. Olaniyi Adigun     
Mrs. Boma Ukwunna     
Mr. Babatunde Afolabi     
Mr. Herbert Odika     
NB:  = Present,  = Apology, = Not applicable
Board Committees Board Committee on Governance and Nominations.

Under the Company’s Articles of Association, the Directors The Board Nominations Committee is a sub-committee of
may appoint Committees consisting of members of the the Board of Directors (“the Board”) of the Company.
Board and such other persons as they think fit and may
delegate any of their powers to such committees. The The goal of the committee is to oversee and advise
Committees are required to use their delegated powers in the Board on matters relating to the annual evaluation
conformity with the regulations laid by the Board. One of of its performance and the performance of other
the features of the manner in which the board operates Board Committees in compliance with the corporate
is the role played by its Committees, which facilitate the governance regulations and codes. It shall review and
discharge of board responsibilities. make recommendations to the Board on the Company’s
organizational structure, succession planning and also
Committee members are expected to attend each Committee propose amendments. It shall deliberate on any other
meeting, unless exceptional circumstances prevent them matter which the Company may refer to it from time to
from doing so. The Board and the Committee’s terms of time.
references spell out the responsibilities, appointment,
composition, and their review among other things. zz Review the structure, size, composition of the Board
at least annually and make recommendations on any
The following Committees are currently operating at the proposed changes to the Board.
Board Level;
zz Establish a formal and transparent process for Board

appointments, including establishing the criteria for
i. Board Audit Committee
appointment to the Board and Board committees’
ii. Governance and Nominations Committee
memberships, reviewing prospective candidates’
iii. Strategic Planning and Finance Committee
qualifications and any potential conflict of interest; Directors, as well as the Company’s corporate
assessing the contribution of current Directors governance practices.
against their re-nomination suitability, and making zz
Ensure the development and periodic review of
appropriate recommendations to the Board. Board charters, Board committee charters and other
zz Prepare a job specification for the Board Chairman’s governance policies, such as the code of ethics,
position, including an assessment of time commitment conflict of interest and whistleblowing policies among
required of the candidate. others.
zz Identify individuals suitably qualified to become zz Review and make recommendations to the Board for
Board members and make recommendations to the approval of the Company’s organizational structure
Board for nomination and appointment as Directors. and any proposed amendments.
zz
Periodically determine the skills, knowledge and zz
Annually review and recommend changes to the
experience required on the Board and its committees Governance and Nominations Committee’s Terms of
zz
Make recommendations on experience required by Reference for the Board’s consideration and approval.
Board committee members, committee appointments zz The Governance and Nominations Committee should
and removal, operating structure, reporting and other ensure that proposed Directors are fit and proper
committee operational matters. persons before recommending them to the Board for
zz
Make recommendations on compensation structure consideration for directorship positions.
for Executive Directors and key management zz At Board meetings, the chairman of the Governance
executives such as the Chief Finance Officer and and Nominations Committee should present a written
Company Secretary. report of the key recommendations made at all the
zz Provide input to the annual report of the Company in
meetings held by the Committee since the last Board
respect of director compensation. meeting.

zz Ensure that the Company has a formal program for Composition.
the induction and training of Directors. The Committee as at 31st of December 2023, consist of
zz Undertake the annual assessment of the independent 3 members of the Board of Directors who are appointed
status of each Independent Non-Executive Director. by a stand-alone committee assigned by the Board for the
purpose of nominating members of the Committee.
zz
Review the performance and effectiveness of the
subsidiary company Boards on an annual basis
The Members of the Governance and Nominations
where applicable.
Committee comprises solely of Non-Executive Directors,
zz Ensure that the Company has a succession policy and and a majority of them should be Independent Non-
plan in place for the Chairman of the Board, the MD/ Executive Directors where possible. However, Senior
CEO and all other Executive Directors, Non-Executive Management may be in attendance at meetings, as and
Directors and senior management positions to ensure when appropriate.
leadership continuity. Succession planning should
be reviewed periodically, with provision made for Dates of Governance and Nominations Committee
succession in emergency situations as well as long- Meetings
term vacancies. January 17th, 2023
zz
Deal with all matters pertaining to executive March 15th, 2023
management selection and performance, including April 13th, 2023 (Virtual)
an annual evaluation of the performance of the MD/ April 27th 2023 (Virtual)
CEO and executive management. July 11th 2023
October 17th 2023
zz
Develop a process for, and ensure that the Board
undertakes, an annual Board performance evaluation
of itself, its committees, the Chairman and individual
The Statutory Board Audit Committee zz Review the independence of the external auditors in
The role of the Board Audit Committee shall be in line with line with the policy developed on the nature, extent
regulatory requirements separate from the Statutory Audit and terms under which the external auditors may
Committee. It shall assess the integrity and effectiveness perform non-audit services prior to their appointment
of accounting, financial, compliance and other control to perform non-audit services to ensure that where
systems. It is to consider and provide the Board with approved non-audit services are provided by the
recommendations with regards to the financial reporting external auditors, there is no real or perceived conflict
process and matters, audit process of the company, of interest, or other legal or ethical impediment.
activities of the Statutory Audit Committee and the zz Preserve auditor independence, by setting clear hiring
Company’s internal controls and compliance with laws policies for employees or former employees of external
and regulations and any other matter which the Company (independent) auditors.
may refer to it from time to time.
zz
At least on an annual basis, obtain and review a
report by the internal auditor describing the strength
The Committee’s key terms of reference comprise various
and quality of internal controls including any issues
categories of responsibilities and include the following:
or recommendations for improvement, raised by the
most recent internal control review of the Company.
zz
Ensure the development of a comprehensive
zz Discuss the annual audited financial statements and
internal control framework for the Company, obtain
half yearly unaudited statements with management
appropriate (internal and/or external) assurance and
and external auditors.
report annually in the Company’s audited financial
report, on the design and operating effectiveness of zz
Discuss policies and strategies with respect to risk
the Company’s internal controls over the financial assessment and management.
reporting systems. zz Meet separately and periodically with management,
zz Oversee the management process for the identification internal auditors and external auditors.
of significant fraud risks across the Company and zz
Consider any related party transactions that may
ensure that adequate prevention, detection and arise within the company or group.
reporting mechanisms are in place.
zz Invoke its authority to investigate any matter within
zz Discuss the interim or annual audited financial its terms of reference and the Company must make
statements as well as significant financial reporting available the resources to the internal auditors with
findings and recommendations with management which to carry out this function including access to
and external auditors prior to recommending same external advice where necessary.
to the Board for their consideration and appropriate
zz Report regularly to the Board.
action.
zz
zz Maintain oversight of financial and non-financial
Committee’s Terms of Reference for the Board’s
reporting.
consideration and approval.
zz
Review and ensure that adequate whistle-blowing
zz At least once in a year, the Committee should hold a
policies and procedures are in place and that the issues
discussion with the head of the internal audit function
reported through the whistle-blowing mechanism are
and the external auditors without the presence of
summarized and presented to the Board.
management, to facilitate an exchange of views
zz Review, with the external auditors, any audit scope and concerns that may not be appropriate for open
limitations or significant matters encountered and discussion.
management’s responses to same.
zz
Where the Board Audit Committee requires the
zz
Develop a policy on the nature, extent and terms advice of any director on a particular matter, it may
under which the external auditors may perform non- co-opt him for such period as it thinks fit to assist in
audit services. the discharge of any of its functions under this Act.
zz
Exercise/Assist in oversight over management’s The committee undertakes the following
processes to ascertain the integrity of the Company’s responsibilities;
financial statements, compliance with all applicable zz To exercise their business judgment to take decisions
legal and other regulatory requirements; and assess which they reasonably believe is in the best interests
the qualifications and independence of the external of the Company and its shareholders.
auditors, and the performance of the Company’s
zz
Develop the strategic management of the Company
internal audit function as well as that of the external
and assess the overall direction and strategy of the
auditors.
business
zz Ensure the establishment of and exercise oversight on
zz Evaluate the Company’s capital structure and develop
the internal audit function which provides assurance
recommendations based upon that information
on the effectiveness of the internal controls. On a
quarterly basis, obtain and review a report by the zz
Advise management and the Board regarding
internal auditor describing the strength and quality of financial matters including global financial policies
internal controls including identification of any issues and practices, capital structure, annual financing
or recommendations for improvement raised by the plans, restructuring, acquisitions and divestitures
most recent internal audit review of the Company. zz Analyze and recommend basic financial goals to be
zz Establish an internal audit function and ensure there achieved by the Company, ensuring that financial
are other means of obtaining sufficient assurance of objectives are aligned with the Company’s overall
regular review or appraisal of the system of internal objectives, strategic vision and direction
controls in the company. zz Review significant relationships with analysts, banks
and investment banks
Composition
zz Review the Company’s performance on major capital
As at 31 December 2023, the Committee was made
up of five members of the Board, two of whom are non- investment projects versus original projections
executive director and an Independent director, while the zz
Review and recommend a dividend policy for the
other three members are shareholder representatives. Company.
Only non-executive directors should be members of the zz Review the parameters and underlying assumptions
Board Audit Committee. However, senior management of the preliminary annual budget and advise
may be in attendance. management regarding the preliminary annual budget
at the Committee meeting.
Dates of Board Audit Committee Meetings
zz Provide input from the Board to management in the
January 23rd, 2023
development of the Company’s strategic plan.
March 21st 2023
April 19th, 2023 zz Serve as a resource in assisting management in the
July 17th, 2023 development of the Company’s strategic plan. Act
October 19th, 2023 in an advisory capacity in assessing the strategies
and action plans designed to meet the Company’s
Board Committee on Strategic Planning and Finance strategic objectives.
The goal of the committee is to consider and advise the zz
Serve as representatives of the Board in evaluating
Board on matters relating to the review and analysis of the Company’s strategic planning process.
financial matters and finance oversight as well as give an
zz The Strategic Planning and Finance Committee shall
objective view of the financial position of the company. It
shall also assist the Board in long-range strategic planning review and reassess the adequacy of the Terms of
in achieving delivery of financial activity and operational Reference annually and recommend any proposed
performance targets in the company; and any other matter changes to the Board for approval.
which the company may refer to it from time to time.
zz Review any potential impact specifically related to Composition

the Company’s operational performance. The Committee consist of at least 3 members of the
zz The Strategic Planning and Finance Committee shall Board of Directors who are appointed by the Board on
annually review its own performance. the recommendation of the Governance and Nominations
Committee. Only Directors should be members of the
zz
Strategic Planning and Finance Committees however,
Strategic Planning and Finance Committee’s terms of
Senior Management may be in attendance. Members. The
reference for the Board’s consideration and approval.
Chairman of the Committee is appointed by the Board of
zz
At Board Meetings, the chairman of the Strategic Directors and presides over the Committee meetings.
Planning and Finance Committee should present a
written report of the key recommendations made at Dates of Strategic Planning and Finance Committee
all the meetings held by the Committee since the last Meetings
Board meeting. January 19th 2023
March 14th 2023
July 12th, 2023
October 18th 2023
Attendance at Committee Meetings during the year ended 31 December, 2023

Governance and Strategic Planning
Statutory Board Nominations and Finance
Members of Committee Audit Committee Committee Committee
Non-Executive Directors
Mrs Laila Jean St. Matthew-Daniel 1/4 6/6
Dr. Bukola Jaiyesimi Bello 6/6
Dr. Oluropo Owolabi - - 4/4
Mr. Anogwi Anyanwu 4/4 - -
Mr. Oladipupo Kayode Filani - 5/6 -
Captain Shehu Usman Iyal - - 3/4
Executive Directors
Mr. Basil Agboarumi 4/4
Mr. Olaniyi Adigun - - 4/4
Mrs. Boma Ukwunna - - 4/4
Mr. Babatunde Afolabi - - 4/4
Mr. Herbert Odika 2/4
Shareholder Representative
Samiat Odunuga 4/4
Ismaila Adamu 4/4
Rotimi Aina 4/4
Senior Management in Attendance

Rotimi Omotoso 4/4 - -
Benjamin Akinola 4/4 - -
Jesuyemisi Odeyemi 3/4 3/4 3/4
Directors Declaration zz
Ever been barred from entry into a profession or
None of the Directors have:- occupation
zz Ever been convicted in any jurisdiction of any criminal
zz
Ever been convicted of an offence resulting from offence or an offence under any Nigerian Legislation.
dishonesty, fraud or embezzlement.
zz Ever been declared bankrupt or sequestrated in any
jurisdiction. BY ORDER OF THE BOARD
zz At any time been a party to a scheme of arrangement

or made any other form of compromise with their
creditors.
zz
Ever been found guilty in disciplinary proceedings
by an employer or regulatory body, due to dishonest Jesuyemisi Odeyemi
activities. Company Secretary
zz Ever been involved in any receiverships, compulsory
FRC/2023/PRO/ICSAN/002/887904
liquidations or creditors’ voluntary liquidations. Dated this 14 March, 2024
REPORT OF THE STATUTORY AUDIT COMMITTEE

FOR THE YEAR ENDED 31 DECEMBER 2023
In accordance with the provision of Section 404 (7) of the Companies and Allied Matters, Act CAP C20, Laws of the
Federation of Nigeria 2020, the members of the Audit Committee of Skyway Aviation Handling Company PLC hereby
report as follows:

i. We have exercised our statutory functions under Section 404 (7) of the Companies and Allied Matters, Act CAP C20,
Laws of the Federation of Nigeria 2020 and acknowledge the cooperation of management and staff in the conduct of
these responsibilities.

ii. We are of the opinion that the accounting and reporting policies of the company are in accordance with legal
requirements and agreed ethical practices and that the scope and planning of both the external and internal audits for
the year ended 31 December 2023 were satisfactory and reinforce the company’s internal control systems.
iii. We have deliberated with the External Auditors, who have confirmed that necessary co-operation was received from
management in the course of their statutory audit and we are satisfied with the management’s response to the External
Auditor's recommendations on accounting and internal control matters and with the effectiveness of the company's
system of accounting and internal control.
Mr. Anogwi Anyanwu

Chairman, Audit Committee
FRC/2013/ICAN/00000002213
Date: 14 March, 2024
Members of Audit Committee are:
Mr. Anogwi Anyanwu

Mrs. Laila Jean St. Matthew-Daniel
Mrs. Samiat Odunuga (Shareholders' Representative)
Mr. Ismaila Adamu (Shareholders' Representative)
Mr. Rotimi Aina (Shareholders' Representative)
INTERNAL CONTROL OVER FINANCIAL REPORTING

In accordance with the requirements of Skyway Aviation Handling Company Plc, we performed a limited assurance
engagement and reported on our assessment of the Company's internal control over financial reporting as of December 31,
2023.

The work performed was done in accordance with the Guidance on Implementation of Sections 60 – 63 of the Investments
and Securities Act 2007, which requires public companies (subject to the reporting requirements of the Act) to include in
their annual reports a report of management on the company’s internal control system.

The Management of Skyway Aviation Handling Company Plc is responsible for establishing and maintaining adequate
Internal Controls over Financial Reporting (ICFR). It refers to the controls designed by, or under the supervision of, the
company’s principal executive and principal financial officers, or persons performing similar functions, and effected by the
entity's board of directors, management, and other personnel, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with Generally Accepted
Accounting Principles (GAAPs) and International Financial Reporting Standards (IFRS).

We have performed a review of the Internal Control over Financial Reporting of the company for the purpose of determining
the existence and adequacy of the Internal Controls around the preparation of its financial statements.

We conducted our review using the criteria established by the Financial Reporting Council Guidelines on Management
Report on Internal Control Over Financial Reporting and the Treadway Commission's Committee of Sponsoring Organizations
(COSO) on Internal Control—Integrated Framework 2013. Our procedures included examining entity-level controls, general
controls, and transaction-specific controls. We observed a few inadequacies for which the management has advanced the
implementation of planned corrective programs.

In our opinion, the internal controls designed and effected by the management of Skyway Aviation Handling Company Plc
over operations, reports, corporate governance and compliances were reasonably adequate and sufficient to ensure that the
financial statements and report for the period ended December 31, 2023 do not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which
such statements were made, misleading with respect to the period ended December 31, 2023.

Yours faithfully,
Seyi Katola
FRC/2014/ICAN/00000006285
Engagement Partner
Seyi Katola & Company
(Chartered Accountants)
Lagos-Nigeria
March 27, 2024
STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Companies and Allied Matters Act (sections 377 and 378) , CAP C20 LFN, 2020 requires the directors to prepare
financial statements for each financial year that give a true and fair view of the state of financial affairs of the Company at
the end of the year and its profit or loss. The responsibilities include ensuring that the company;
(a) Keeps proper accounting records that disclose, with reasonable accuracy, the financial position of the company
and comply with the requirements of the Companies and Allied Matters Act, CAP C20 LFN, 2020:
(b)
Establishes adequate internal controls to safeguard its assets and to prevent and detect fraud and other
irregularities; and
(c) Prepares its financial statements using suitable accounting policies supported by reasonable and prudent
judgments and estimates, and are consistently applied.
The Directors accept responsibility for the financial statements, which have been prepared using appropriate accounting
policies supported by reasonable and prudent judgments and estimates, in conformity with International Financial Reporting
Standards as issued by the International Accounting Standards Board, and the requirements of the Financial Reporting
Council of Nigeria Act, No 6, 2011 and the Companies and Allied Matters Act, CAP C20 LFN, 2020.
The Directors are of the opinion that the financial statements give a true and fair view of the state of the financial affairs of
the company and of its profit or loss. The directors further accept responsibility for the maintenance of accounting records
that may be relied upon in the preparation of financial statement, as well as adequate systems of internal financial control.
Nothing has come to the attention of the directors to indicate that the company will not remain a going concern for at least
twelve months from the date of this statement.
Barr. (Dr.) Taiwo Afolabi Mr. Basil Agboarumi

Chairman Managing Director/CEO
FRC/2015/NBA/00000013106 FRC/2019/IODN/00000019784
Date:14 March, 2024 Date: 14 March , 2024
Mr. Rotimi Omotoso

Chief Finance Officer
FRC/2016/ICAN/00000014593
Date: 14 March, 2024
REPORT OF THE INDEPENDENT AUDITORS
Lagos Office:
Plot 8A, Ajumobi Olorunoje Street,
Off Acme Road,
Ikeja, Lagos State
Abuja Liaison Office:

Suite 317, Lozumba Complex,
Area 10, Garki, Abuja
Tel: 08096227865
[email protected]
[email protected]
www.gbcconsult.com
TO THE MEMBERS OF SKYWAY AVIATION HANDLING COMPANY PLC.
OPINION
We have audited the financial statements of Skyway Aviation Handling Company Plc. (SAHCO PLC) herein referred to as
“the company”, which comprise of:

the company’s statement of financial position as at December 31, 2023;
the company’s statement of profit or loss and other comprehensive income for the year ended 31 December, 2023;
the company’s statement of changes in equity as at 31 December, 2023;

the company’s statement of cash flows for the year ended 31 December, 2023;
the notes comprising a summary of the significant accounting policies and other explanatory information.
The accompanying Financial Statements give a true and fair view of the financial position of the company as at 31
December 2023 and its financial performance and cash flows for the year then ended in accordance with the Companies
and Allied Matters Act, CAP C20 LFN, 2020, the International Financial Reporting Standards (IFRSs) as issued by the
International Accounting Standards Board and in the manner required by Financial Reporting Council of Nigeria Act, No 6,
2011.

BASIS FOR OUR OPINION
We conducted our audit in accordance with the International Standards on Auditing (ISAs) issued by the International
Auditing and Assurance Standards Board (IAASB). Our responsibilities under those standards are further described in
the Auditors’ responsibilities for the audit of the Financial Statements section of our report. We are independent of the
company in accordance with the ICAN codes of ethics for professional accountants and we have fulfilled our other ethical
responsibilities in accordance with the code. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
KEY AUDIT MATTERS
Key audit matters are those matters that in our professional judgments were of most significance in our audit of the financial
statements of the current period. These matters were addressed in the context of our audit of the financial statements as
a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
REPORT OF THE INDEPENDENT AUDITORS Cont’d
We have determined the matters described below to be the key audit matters to be communicated in our report. The key
audit matters below relate to the audit of the financial statements.
Key Audit Matter(s)

Receivable Loss Impairment: See Note 17 to the Financial How the matter was addressed in the Audit
Statements.
IFRS 9 requires SAHCO Plc to recognize impairment using Our audit procedures to assess the Receivable loss
the Expected Credit Loss (ECL) model. The ECL model impairment included the following:
is dependent on significant judgement and estimates by
i. U
pdated our understanding of the controls put in place
management in the measurement and determination
by the management to identify impaired receivables
of impairment on Receivables and other financial
and provisions against those assets and determined
instruments. Our focus on this area was premised on
whether these controls have been appropriately
the significant judgement and subjectivity inherent or
designed and implemented.
applied by management in the estimation of the level of
impairment, and the size of this Receivables. ii. W
e reviewed the appropriateness of the company's
determination of significant increase in credit risk and
The ECL model is forward looking which incorporates
ensured compliance with IFRS 9.
industry and prevailing economic events and requires an
application of historical financial data of the Compay. All of iii. W
e involved our internal credit specialists in the
these are combined to develop and apply relevant models review of the assessment of the overall compliance of
to the receivables of the Company. the model to the requirements of the IFRS 9.
Receivable Loss Impairment: See Note 17 to the Financial How the matter was addressed in the Audit
Statements.
Trade and other Receivables make up a significant portion iv. W
e challenged the key data input and assumptions for
of the total assets of Company with the total of NGN9.7 data input into the ECL model used by the Company.
billion representing about 74% of the Company's current
v. O
n a sample basis, we reviewed recievables for
assets. The total amount of impairment on Receivables
evidence of significant increase in credit risk with
recognised in the Statement of Profit or Loss for the year is
major focus on receivables that were not reported as
NGN 218 million as stated in note 17(a).
being impaired.
The basis of the provisions is summarized in the accounting
vi. W
e subjected the data used in the models to test as
policies in the financial statements (See Note 2.12.7). The
well as assessing the model's methodology.
Company's impairment model addresses the three stages
of credit classifications. Based on our review, we found that the company's
impairment methodology, including the model,
Because of the significance of these estimates, judgments
assumptions and key inputs used by management to
and the size of Trade Receivables, economic conditions
estimate the amount of receivable impairment losses
experienced in Nigeria during the year which affected
were comparable with historical performance, and
the performance of Receivables, the audit of receivable's
prevailing economic situations and that the estimated
impairment is considered a key audit matter.
receivable impairment loss determined was appropriate
in the circumstances.
Other information in the Annual Report
The directors are responsible for the other information. The other information comprises all the information in the Skyway
Aviation Handling Company Plc. 2023 annual report other than the company financial statements and our auditor’s report
thereon (“the Other Information”).

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the Other Information and, in doing so,
consider whether the other Information is materially inconsistent with the financial statements or our knowledge obtained
in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that
there is a material misstatement of this other Information; we are required to report that fact. We have nothing to report in
this regard.
Responsibilities of the directors and those charged with Governance for the Financial Statements
The directors are responsible for the preparation and fair presentation of the financial statements in accordance with
International Financial Reporting Standards and the requirement of the Companies and Allied Matters Act CAP C20 LFN
2020, circulars and guidelines issued by the Financial Reporting Council Act 2011 and for such internal control as the
directors determine is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless the directors either intends to liquidate the company or to cease operations, or have no realistic alternative but to
do so.
Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
i. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error; design
and perform audit procedures responsive to those risks; and, obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
ii. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
iii. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by directors.
iv. Conclude on the appropriateness of directors’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a
going concern.
v. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
vi. We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identified during
our audit.
vii. We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.
viii. From the matters communicated with the Audit Committee, we determine those matters that were of most significance
in the audit of the financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on other legal requirements
The Companies and Allied Matters Act, CAP C20 LFN, 2020 requires that in carrying out our audit we consider and report
to you on the following matters. We confirm that:
i. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purpose of our audit;
ii. In our opinion, proper books of account have been kept by the company; and
iii. The company's statement of financial position and statement of profit or loss and other comprehensive income are in
agreement with the books of account.
The Engagement Partner on this audit resulting in this independent auditor's report is :-
Emmanuel Igemokhai Ogiaga, FCA

FRC/2021/PROF/00000024269
Gbenga Badejo & Co.,
(Chartered Accountants),
Plot 8A, Ajumobi Olorunoje Street,
Off Acme Road, Agidingbi,
Ikeja, Lagos State.
Date: 27 March, 2024.
STATEMENT OF PROFIT OR LOSS AND

OTHER COMPREHENSIVE INCOME
For The Year Ended 31 December,
2023 2022
Note N'000 N'000
Revenue 6 16,546,685 11,125,330

Direct Cost 7 (8,350,701) (6,759,284)
Gross Profit 8,195,984 4,366,047
Other Operating Income 8 293,912 475,413

Administrative Expenses 9 (5,545,464) (4,074,381)
Profit from operations 2,944,432 767,079
Finance Income 10 400,283 19,829
Finance Expense 10 (714,428) (317,325)
Operating Profit Before Income Tax Expenses 2,630,287 469,583

Income Tax Expense 32 (675,609) (160,247)
Profit for the year 1,954,678 309,336
Other comprehensive income

Item that will not be reclassified to profit or loss
Recognition of foreign exchange difference 28 1,304,796 -
(Reversal)/recognition of actuarial loss on defined benefit obligation 24 - -
Recognition of related tax on defined benefit obligation 24 206,294 155,287
Other comprehensive income for the year, net of tax 1,511,090 155,287
Total comprehensive income for the year 3,465,769 464,623
Earnings per share

Basic earnings - kobo 30 144.41 22.85
Diluted earnings - kobo 30 144.41 22.85
The accompanying notes form an integral part of these financial statements.
STATEMENT OF FINANCIAL POSITION

2023 2022
Note N'000 N'000
NON-CURRENT ASSETS
Property, Plant and Equipment 13 15,082,194 14,258,905
Investment Properties 14 733,627 734,531
Intangible Assets 15 4,079,240 4,081,010
Deferred Tax Assets 33 1,073,516 926,918
20,968,577 20,001,363
CURRENT ASSETS
Inventories 16 915,915 615,653
Trade and Other Receivables 17 9,716,297 4,217,783
Cash and Bank Balances 18 950,488 4,015,148
Short Term Investment 18 1,514,620 368,593
13,097,320 9,217,176
TOTAL ASSETS 34,065,897 29,218,539
EQUITY
Ordinary Share capital 23 676,790 676,790
Share Premium 28 4,784,010 4,784,010
Retained Earnings 25 6,396,426 4,665,090
Actuarial Valuation Reserve 27 529,431 323,137
Foreign Exchange Translation Reserve 28 1,304,796 -
Revaluation Reserve 26 9,088,895 9,088,895
22,780,348 19,537,921
NON-CURRENT LIABILITIES
Long Term Borrowings 20 3,372,124 3,430,457
Deferred Income 31 13,483 8,753
Deferred Tax Liability 33 - -
Defined Benefit Obligations 24 3,023,551 2,240,086
6,409,158 5,679,297
CURRENT LIABILITIES
Trade Payable and Other Payables 19 4,123,184 3,550,928
Short Term Borrowings 20 124,403 204,993
Deferred Income 31 46,014 35,014
Income Tax Liabilities 32 582,791 210,387
4,876,392 4,001,321
TOTAL EQUITY AND LIABILITIES 34,065,897 29,218,539
The financial statements were approved by the Board of Directors on 14 March , 2024 and signed on its behalf by:
Barr. (Dr.) Taiwo Afolabi, MON Mr. Basil Agboarumi Mr. Rotimi Omotoso
Chairman Managing Director/CEO Chief Finance Officer
FRC/2015/NBA/00000013106 FRC/2019/IODN/00000019784 FRC/2016/ICAN/00000014593
STATEMENT OF CHANGES IN EQUITY

FOREIGN
ORDINARY ACTUARIAL EXCHANGE
SHARE SHARE RETAINED VALUATION TRANSLATION REVALUATION TOTAL
CAPITAL PREMIUM EARNINGS RESERVE RESERVE RESERVE EQUITY
NOTE N'000 N'000 N'000 N'000 N'000 N'000 N'000
Balance at 1 January 2022 676,790 4,784,010 4,623,746 167,850 - 9,088,895 19,341,291

Impact of correction of errors 25 (44,650) - (44,650)
Balance after adjustment for Prior year errors 676,790 4,784,010 4,579,096 167,850 9,088,895 19,296,641
Total Comprehensive Income for the year
Profit for the year - - 309,336 - - - 309,336
Other comprehensive income for the year - - - 155,287 - 155,287
Total Comprehensive Income for the year - - 309,336 155,287 - - 464,623
Transactions with owners recorded directly in equity

Dividend Paid (Note 33) - - (223,342) - - - (223,342)
Issue of Ordinary Shares - - (223,342) - - - (223,342)
Balance at 31 December 2022 676,790 4,784,010 4,665,090 323,137 - 9,088,895 19,537,921
FOREIGN
ORDINARY ACTUARIAL EXCHANGE
SHARE SHARE RETAINED VALUATION TRANSLATION REVALUATION TOTAL
CAPITAL PREMIUM EARNINGS RESERVE RESERVE RESERVE EQUITY
NOTE N'000 N'000 N'000 N'000 N'000 N'000 N'000
Balance at 1 January 2023 676,790 4,784,010 4,665,090 323,137 - 9,088,895 19,537,921

Total Comprehensive Income for the year
Profit for the year - - 1,954,678 - 1,954,678
Other comprehensive lncome for the year - - - 206,294 1,304,796 - 1,511,090
Total Comprehensive Income for the year - - 1,954,678 206,294 1,304,796 - 3,465,769
Transactions with owners recorded directly in equity

Dividend Paid (Note 33) (223,342)
Issue of Ordinary Shares -
- - (223,342) - - - (223,342)
Balance at 31 December 2023 676,790 4,784,010 6,396,426 529,431 1,304,796 9,088,895 22,780,348
STATEMENT OF CASH FLOWS

2023 2022
Note N'000 N'000
Cash flows from operating activities:
Adjustments for net income to net cash provided by

operating activites
Impact of Prior year Adjustment - (44,650)
Finance Expenses 10 714,428 314,546
Allowance for Impairment on Receivables 166,724 128,073
Provision for Employee Benefit 24 662,986 460,533
Foreign Exchange Difference 1,304,796 -
Investment Property- Depreciation 14 27,268 28,342
Intangible Asset- Amortisation 1,770 1,770
Property Plant and Equipment-Depreciation 13 2,125,083 1,992,747
7,633,342 3,350,944
Changes in working capital

Increase in Trade and Other Receivables (5,665,238) (977,239)
Decrease/(Increase) in Inventories (300,262) (304,891)
(Decrease)/ increase in Trade and Other Payables 572,257 846,455
(Decrease/)Increase in Deferred Income 15,729 (68,494)
Cash generated from operations 2,255,827 2,846,775
Tax Paid 32 (243,509) (636,545)

Payment made by the employer on Employee Benefit 24 (226,736) (130,921)
Finance Expenses Paid (367,214) (73,133)
Net cash inflow from operating activities 1,418,368 2,006,176
Cash flows from investing activities

Purchase of Property, Plant and Equipment 13 (2,948,373) (2,630,103)
Acquisition of Investment Properties 14 (26,364) (7,015)
Purchase of Intangible Asset 15 - (16,018)
Net cash outflow used in investing activities (2,974,737) (2,653,136)
Financing Activities:
Dividend Paid (223,341) (223,341)
Loan Received - 3,500,000
Repayment of Borrowings 20 (138,923) (80,415)
Net cash inflow used in financing activities (362,264) 3,196,244
Net increase/ (decrease) in cash and cash equivalents (1,918,632) 2,549,283

Cash and cash equivalents at the beginning 4,383,740 1,834,458
Cash and cash equivalents at 31 December 18 2,465,108 4,383,740
Represented By
Cash and Bank Balances 950,488 4,015,148
Short Term Investment 1,514,620 368,593
2,465,108 4,383,740
NOTES TO THE FINANCIAL STATEMENTS

1 General Information The financial statements were authorised for issue by

The principal activities of the Company include the Board of Directors on 14 March, 2024.
provision of services including aircraft/ramp handling,
cargo handling, passenger handling, premium lounge, 2.2 Basis of Preparation
aviation security and baggage reconciliation. The financial statements have been prepared under
the historical cost convention except for some
On 3rd of December 2009, SIFAX Shipping Limited financial assets and liabilities measured at fair value
and Global Apex Logistic Limited through Skyway and amortised cost; inventory at net realisable value;
Aviation Handling Company Limited acquired 100% and the liability for defined benefit obligations is
interest of the Federal Government in Skypower recognised as the present value of the defined benefit
Aviation Handling Company Limited due to the obligation and related current service cost.
privatisation of the company.
2.3 Fair Value
In 2018, SAHCOL undertook a business combination Fair value is the price that would be received to sell
with Skypower wherein both companies were an asset or paid to transfer a liability in an orderly
consolidated with SAHCOL as the surviving entity. transaction between market participants at the
measurement date, regardless of whether that price
Skyway Aviation Handling Company Limited became is directly observable or estimated using another
a Public Limited Company on 5th October, 2018. valuation technique. In estimating the fair value of an
asset or a liability, the Company takes into account
The Corporate Headquarters is located at Skyway the characteristics of the asset or liability that market
Aviation Handling Company Plc. Complex, Cargo participants would take into account when pricing
Terminal, Murtala Muhammed International Airport, the asset or liability at the measurement date. Fair
Ikeja, Lagos State, Nigeria. value for measurement and/or disclosure purposes in
these financial statements is determined on such a
2 Significant Accounting Policies basis, except for leasing transactions that are within

The principal accounting policies applied in the the scope of IFRS 16, and measurements that have
preparation of these financial statements are set out some similarities to fair value but are not fair value,
below. These policies have been consistently applied such as net realisable value in IAS 2 or value in use
to all the years presented unless otherwise stated. in IAS 36.
2.1 Statement of Compliance 2.4 Going Concern

The Company's financial statements for the year The directors assess the Company's future performance
ended 31 December, 2023 have been prepared in and financial position on a going concern basis and
conformity with International Financial Reporting have no reason to believe that the Company will not
Standards as issued by the International Accounting be a going concern in the year ahead. For this reason,
Standards Board (IASB) and interpretations issued by the financial statements have been prepared on a
the International Financial Reporting Interpretations going concern basis.
Committee (IFRIC) that are effective at 31 December,
2023 and requirements of the companies and 2.5 Use of estimates and judgement
Allied Matters Act (CAMA) of Nigeria and Financial The preparation of financial statements in conformity
Reporting Council (FRC) Act of Nigeria. with IFRS requires the use of certain critical
accounting estimates and judgments. It also requires
The financial statements comprise the statement management to exercise its judgement in the process
of financial position, the statement of profit or loss of applying the company’s accounting policies.
and other comprehensive income, the statement of The areas involving a higher degree of judgement
changes in equity, the statement of cash flows and or complexity, or areas where assumptions and
the notes. estimates are significant to the financial statements
are disclosed in note 4.
NOTES TO THE FINANCIAL STATEMENTS Cont’d

2.6 Revenue recognition as this provides information that is reliable and more
Revenue is measured based on the consideration relevant than their nature.
specified in a contract with a customer. The Company
recognises revenue when it transfers control over a The Company classifies its expenses as follows:
good or service to a customer. Transfer of control is zz Cost of sales;
believed to be transferred to the customer at the point
zz Administration expenses;
of delivery to the customer.
a) Cost of Goods Sold

2.6.1 Rendering of Services - Cargo Income
These are the direct costs attributable to the service
The company is into Cargo handling in the aviation
rendered by the company. These costs includes
industry. Services rendered is recognised in proportion
directly attributable costs such as the concession
to the stage of completion of the transaction at the
fee, direct labour, cargo shed/warehouse, Hajj and
reporting date. The proportion recognised in the
Christian Pilgrimage operation, as well as overheads,
Statement of Profit or Loss and Other Comprehensive
including depreciation.
Income is assessed by reference to services
performed to date as a percentage of total services to

The cost of goods sold includes write-downs of
be performed.
inventories where necessary.
Revenue from cargo services is also recognised when
b) Administrative Expenses
control of the goods have passed to the clearing
Administrative expenses are recognised as they accrue
agents or customers, usually on delivery of the goods.
during the course of the year. Analysis of expenses
Delivery occurs when a customer's truck has been
recognised in the statement of profit or loss and other
loaded with the cargo goods specified in the invoice.
comprehensive income is presented in classification
based on the function of the expenses as this provides
Revenue is recognised net of discount and rebates
information that is reliable and more relevant than
given on volume trade.
their nature. However, analysis by nature is presented
2.6.2 Aircraft Handling Income in the notes.
The company also renders aircraft handling
2.8 Finance Income and Expense
which include crew and passenger transportation,
Finance income comprises interest income on short-
passenger profiling, equipment rentals and ground
term deposits with banks and foreign exchange gains.
handling services. Income from aircraft handling are
recognised in the profit or loss in proportion to stage
Interest income on short-term deposits is recognised
of completion of the transaction as the reporting
by reference to the principal outstanding and at the
date. However, when the services under a single
effective interest rate applicable, which is the rate
arrangement are rendered in different reporting
that exactly discounts estimated future cash receipts
periods, the consideration is allocated on a relative
through the expected life of the financial asset to that
fair value basis between the services.
asset's net carrying amount on initial recognition
2.6.3 Rental Income
Rentals from sub-leased property are recognised as
Finance costs comprise interest expense on
rental income which is determined over the term of borrowings, exchange differences in financial
lease. instruments and bank charges.
2.7 Expenditure Borrowing costs that are not directly attributable

Expenditures are recognised as they accrue during the to the acquisition, construction or production of a
course of the year. Analysis of expenses recognised qualifying asset are recognised in the Statement of
in the statement of profit or loss is presented in Comprehensive Income using the effective interest
classification based on the function of the expenses method.

oreign currency gains or losses are reported on a net

F is, from the acquisition date, allocated to each of the
basis as either finance income or finance cost depending Company’s cash-generating units that are expected to
on whether foreign currency movements are in a net gain benefit from the combination, irrespective of whether
or net loss position. other assets or liabilities of the acquire are assigned
to those units. Where goodwill has been allocated to a
2.9 Intangible Assets cash-generating unit (CGU) and part of the operation
a) Software within that unit is disposed of, the goodwill associated
In accordance with criteria set out in IAS 38 – with the disposed operation is included in the
“Intangible assets”, intangible assets are recognised carrying amount of the operation when determining
only if identifiable; controlled by the entity because the gain or loss on disposal of the operation. Goodwill
of past events; it is probable that the expected future disposed in these circumstances is measured based
economic benefits that are attributable to the asset on the relative values of the disposed operation and
will flow to the company and the cost of the asset the portion of the cash generating unit retained.
can be measured reliably. Intangible assets primarily
include amortizable items such as software that meet c) Derecognition of Intangible Assets
the IAS 38 criteria. An intangible asset is derecognised on disposal,
or when no future economic benefits are expected
Intangible assets with finite useful lives that from use or disposal. Gains or losses arising from
are acquired separately are carried at cost less derecognition of an intangible asset, measured as
accumulated amortisation and accumulated the difference between the net disposal proceeds
impairment losses. Intangible assets are amortized and the carrying amount of the asset, are recognised
using the straight-line method over their useful lives. in statement of profit or loss when the asset is
Amortization expense is recorded in Direct Cost or derecognised.
administrative expenses, based on the function of
the underlying assets. The estimated useful lives and 2.10 Borrowing Costs
amortisation method are reviewed at the end of each General and specific borrowing costs directly
reporting period, with the effect of any changes in attributable to the acquisition, construction or
estimate being accounted for on a prospective basis. production of qualifying assets, which are assets that
necessarily take a substantial period of time to get
b) Goodwill ready for their intended use or sale, are added to the
Goodwill is initially measured at cost (being cost of those assets, until such time as the assets are
the excess of the aggregate of the consideration substantially ready for their intended use or sale.
transferred and the amount recognised for non-
controlling interests) and any previous interest
Investment income earned on the temporary
held, over the net identifiable assets acquired and investment of specific borrowings pending their
liabilities assumed. If the fair value of the net assets expenditure on qualifying assets is deducted from the
acquired is in excess of the aggregate consideration borrowing costs eligible for capitalisation.
transferred, the Company re-assesses whether it has
correctly identified all of the assets acquired and all All other borrowing costs are recognised in profit or
of the liabilities assumed and reviews the procedures loss in the period in which they are incurred.
used to measure the amounts to be recognised at the
acquisition date. If the reassessment still results in 2.11 Inventories
an excess of the fair value of net assets acquired over Inventories are stated at the lower of cost and net
the aggregate consideration transferred, then the gain realisable value after providing for any obsolescence
is recognised in profit or loss. After initial recognition, and damages determined by the management. Costs
goodwill is measured at cost less any accumulated are those expenses incurred in bringing each product
impairment losses. For the purpose of impairment to its present location and condition which are
testing, goodwill acquired in a business combination computed as follows:

Spare parts and Consumables 2.12.1 Financial Assets

Spare parts which are expected to be fully utilized in Financial assets are initially recognised at fair
production within the next operating cycle and other value plus directly attributable transaction costs.
consumables are valued at weighted average cost Subsequent remeasurement of financial assets is
after making allowance for obsolete and damaged determined by their designation that is revisited at
stocks. each reporting date.
Net realisable value is based on estimated selling The classification of financial assets depends on
price less any further costs expected to be incurred the purpose for which the financial assets were
on completion and disposal. acquired. Management determines the classification
of its financial assets at initial recognition. On

The company’s management determines the initial recognition, financial assets is classified as
estimated amount of slow moving inventories. This measured at amortised cost, fair value through other
estimate is based on the age of items in inventories comprehensive income (FVTOCI) and fair value
and this provision is subject to change as a result of through profit or loss (FVTPL).
technical innovations and the usage of items.
a Financial Assets at amortised cost
Weighted average cost is used to determine the cost These assets are subsequently measured at
of ordinarily interchangeable items. amortised cost using the effective interest method.
The amortised cost is reduced by impairment losses.
2.12 Financial Instruments Interest Income, foreign exchange gains and losses
A financial instrument is any contract that gives rise to and impairment are recognised in profit or loss. Any
a financial asset of one entity and a financial liability gain or loss on derecognition is recognised in profit or
or equity instrument of another entity. loss.
Financial instruments are recognised in the statements A financial assets is measured at amortised cost if
of financial position when the Company becomes a it meets both of the following conditions and is not
party to the contractual obligations of the instrument. designated as at FVTPL
Regular way purchases or sales of financial assets,
i.e. purchases or sales under a contract whose terms i It is held within a business model whose objective
require delivery of the asset within the time frame is to hold assets to collect contractual cash flow;
established generally by regulation or convention in
the market place concerned, are accounted for at the ii Its contractual terms give rise on specified
trade date dates to cash flows that are solely payments of
principal and interest on the principal amount
Initially, financial instruments are recognized at their outstanding.
fair value. Transaction costs directly attributable to
the acquisition or issue of financial instruments are A debt investment is measured at FVTOCI, if it meets
recognized in determining the carrying amount except both of the following conditions and is not designated
for financial instruments at fair value through profit or as at FVTPL:
loss. For financial instruments classified as Fair Value
Through Profit or Loss (FVTPL) transaction costs i It is held within a business model whose objective
incurred are recognized in profit or loss. Subsequently, is achieved by both collecting contractual cash
financial assets and liabilities are measured flows and selling financial assets; and
according to the category to which they are assigned.
The Company does not make use of the option to ii Its contractual terms give rise on specified
designate financial assets or financial liabilities at fair dates to cash flows that are solely payments of
value through profit or loss at inception (Fair Value principal and interest on the principal amount
Option). outstanding.

The Company does not have debt instruments that Investments in equity instruments at FVTOCI are
are measured subsequently at fair value through initially measured at fair value plus transaction costs.
profit or loss (FVTPL) or (FVTOCI). Subsequently, they are measured at fair value with
gains and losses arising from changes in fair value
Despite the foregoing, the Company may make the recognised in other comprehensive income and
following irrevocable election/designation at initial accumulated in the investments revaluation reserve.
recognition of a financial asset: The cumulative gain or loss is not be reclassified to
profit or loss on disposal of the equity investments,
i The Company may irrevocably elect to present instead, it is transferred to retained earnings.
subsequent changes in fair value of an equity
investment in other comprehensive income if Dividends on these investments in equity instruments
certain criteria are met; and are recognised in profit or loss in accordance with IFRS
9, unless the dividends clearly represent a recovery of
ii The Company may irrevocably designate a debt part of the cost of the investment. Dividends will be
investment that meets the amortised cost or included in the ‘finance income’ line item (note 10) in
FVTOCI criteria as measured at FVTPL if doing so the statement of profit or loss
eliminates or significantly reduces an accounting
mismatch. c Debt Investments designated as at FVTOCI
These assets are subsequently measured at fair value.
On initial recognition of an equity investment that is not Interest income calculated using the effective interest
held for trading, the company may irrevocably elect to method, foreign exchange gains and losses and
present subsequent changes in the investment's fair impairment are recognised in the statement of profit
value on OCI. This election is made on an investment or loss. Other net gain and losses are recognised in
by investment basis. OCI. On derecognition, gain and losses accumulated
in OCI are reclassified to the statement of profit or
b Equity Instruments designated as at FVTOCI loss
On initial recognition, the Company may make an
irrevocable election (on an instrument‑by‑instrument All financial assets not classified as measured at
basis) to designate investments in equity instruments amortised cost or FVOCI as declared above are
as at FVTOCI. Designation at FVTOCI is not permitted measured at FVTPL. This includes all derivative
if the equity investment is held for trading or if it is financial assets.
contingent consideration recognised by an acquirer in
a business combination. d
Financial Assets at FVTPL: These assets are
subsequently measured at fair value. Net gains and
A financial asset is held for trading if: losses, including any interest or dividend income are
recognised in the statement of profit or loss.
i it has been acquired principally for the purpose
of selling it in the near term; or The company's financial assets are mainly measured
at amortised cost and they comprise cash and Cash
ii on initial recognition it is part of a portfolio of equivalents, trade receivables, due to related parties
identified financial instruments that the Company and other receivables.
manages together and has evidence of a recent
actual pattern of short‑term profit‑taking; or (i) Cash and Cash Equivalents
The Company considers all highly liquid unrestricted
ii it is a derivative (except for a derivative that is a investments with less than three months maturity
financial guarantee contract or a designated and from the date of acquisition to be cash equivalents.
effective hedging instrument). Bank overdrafts that are repayable on demand
and form an integral part of the Company’s cash

management are included as a component of cash recognises its retained interest in the asset and an
and cash equivalents for the purpose of the statement associated liability for amounts it may have to pay.
of cash flows. If the Company retains substantially all the risks and
rewards of ownership of a transferred financial asset,
(ii) Trade Receivables the Company continues to recognise the financial
Trade receivables are amounts due from customers for asset and also recognises a collateralised borrowing
services rendered in the ordinary course of business. for the proceeds received.
If collection is expected within one year or less (or in
the normal operating cycle of the business if longer), 2.12.3 Financial Liabilities
they are classified as current assets. If not, they are Classification as Debt or Equity
presented as non-current assets. Debt and equity instruments issued by the Company
are classified as either financial liabilities or as equity

Trade receivables are recognised initially at fair in accordance with the substance of the contractual
value and subsequently measured at amortised cost arrangements and the definitions of a financial liability
using the effective interest method less provision for and an equity instrument
impairment. Discounting is ignored if insignificant.
A provision for impairment of trade receivables is Equity Instruments
established when there is objective evidence that the An equity instrument is any contract that evidences
Company will not be able to collect all the amounts a residual interest in the assets of an entity after
due according to the original terms of the receivables. deducting all of its liabilities. Equity instruments
Significant financial difficulties of the debtor, issued by the Company are recognised at the proceeds
probability that debtor will enter bankruptcy and received, net of direct issue costs. Repurchase of the
default or delinquency in payment, are the indicators Company's own equity instruments is recognised and
that a trade receivable is impaired. The carrying deducted directly in equity.
amount of the asset is reduced through the use of
an allowance account and the amount of the loss is Financial Liabilities
recognised in the statement of profit or loss and other All financial liabilities are measured subsequently at
comprehensive income within the administrative amortised cost using the effective interest method
cost. or at FVTPL. The Company does not hold financial
liabilities measured at FVTPL.

The amount of the impairment provision is the
difference between the asset's nominal value and Financial liabilities measured subsequently at
the recoverable value, which is the present value amortised cost
of estimated cash flows, discounted at the original
effective interest rate. Changes to this provision are Financial liabilities that are not
recognised under administrative costs. When a trade (i) contingent consideration of an acquirer in a
receivable is uncollectable, it is written off against the business combination,
provision for trade receivables. (ii) held‑for‑trading, or
(iii)
designated as at FVTPL, are measured
2.12.2 Derecognition of Financial Assets subsequently at amortised cost using the effective
The Company derecognises a financial asset only interest method.
when the contractual rights to the cash flows from
the asset expire, or when it transfers the financial
The effective interest method is a method of
asset and substantially all the risks and rewards calculating the amortised cost of a financial liability
of ownership of the asset to another entity. If the and of allocating interest expense over the relevant
Company neither transfers nor retains substantially period. The effective interest rate is the rate that
all the risks and rewards of ownership and continues exactly discounts estimated future cash payments
to control the transferred asset, the Company (including all fees and points paid or received that
form an integral part of the effective interest rate,

transaction costs and other premiums or discounts) For financial assets other than purchased or
through the expected life of the financial liability, or originated credit‑impaired financial assets (i.e. assets
(where appropriate) a shorter period, to the amortised that are credit‑impaired on initial recognition), the
cost of a financial liability. effective interest rate is the rate that exactly discounts
estimated future cash receipts (including all fees and
(i) Trade Payables points paid or received that form an integral part
Trade payables are obligations to pay for goods or of the effective interest rate, transaction costs and
services that have been acquired in the ordinary other premiums or discounts) excluding expected
course of business from suppliers. Trade payables are credit losses, through the expected life of the debt
classified as current liabilities if payment is due within instrument, or, where appropriate, a shorter period,
one year or less (or in the normal operating cycle of to the gross carrying amount of the debt instrument
the business if longer). If not, they are presented as on initial recognition. For purchased or originated
non-current liabilities. credit‑impaired financial assets, a credit‑adjusted
effective interest rate is calculated by discounting the
Trade payables are recognised initially at fair value estimated future cash flows, including expected credit
and subsequently measured at amortised cost using losses, to the amortised cost of the debt instrument
the effective interest method. on initial recognition
(ii) Bank Borrowings The amortised cost of a financial asset is the amount
Borrowings are recognised initially at fair value, as at which the financial asset is measured at initial
the proceeds received, net of any transaction cost recognition minus the principal repayments, plus the
incurred. Borrowings are subsequently recorded at cumulative amortisation using the effective interest
amortised cost. Finance charges, including premiums method of any difference between that initial amount
payable on settlement or redemption and direct and the maturity amount, adjusted for any loss
issue costs, are accounted in profit or loss using allowance. The gross carrying amount of a financial
the effective interest method and are added to the asset is the amortised cost of a financial asset before
carrying amount of the instrument to the extent they adjusting for any loss allowance.
are not settled in the period in which they arise

Interest income is recognised using the effective
2.12.4 De-recognition of Financial Liabilities interest method for debt instruments measured
The Company derecognises financial liabilities subsequently at amortised cost and at FVTOCI. For
when, and only when, the Company's obligations are financial assets other than purchased or originated
discharged, cancelled or they expire. The difference credit‑impaired financial assets, interest income is
between the carrying amount of the financial liability calculated by applying the effective interest rate to
derecognised and the consideration paid and payable the gross carrying amount of a financial asset, except
is recognised in profit or loss. for financial assets that have subsequently become
credit‑impaired (see below). For financial assets that
2.12.5 Offsetting have subsequently become credit‑impaired, interest
Financial assets and liabilities are offset and the income is recognised by applying the effective interest
net amount presented in the statement of financial rate to the amortised cost of the financial asset. If,
position when, and only when, the Company has a in subsequent reporting periods, the credit risk on
legal right to offset the amounts and intends either to the credit‑impaired financial instrument improves so
settle on a net basis or to realise the asset and settle that the financial asset is no longer credit‑impaired,
the liability simultaneously. interest income is recognised by applying the effective
interest rate to the gross carrying amount of the
2.12.6 Amortised Cost and Effective Interest Method
financial asset.
The effective interest method is a method of
calculating the amortised cost of a debt instrument
and of allocating interest income over the relevant
period.

For purchased or originated credit‑impaired financial recognition, the Company compares the risk of a
assets, the Company recognises interest income by default occurring on the financial instrument at the
applying the credit‑adjusted effective interest rate to reporting date with the risk of a default occurring on the
the amortised cost of the financial asset from initial financial instrument at the date of initial recognition.
recognition. The calculation does not revert to the In making this assessment, the Company considers
gross basis even if the credit risk of the financial asset both quantitative and qualitative information that
subsequently improves so that the financial asset is is reasonable and supportable, including historical
no longer credit‑impaired. experience and forward‑looking information that is
available without undue cost or effort. Forward‑looking
2.12.7 Impairment information considered includes the future prospects
of the industries in which the Company’s debtors
Financial Assets operate, obtained from economic expert reports,
The Company recognises a loss allowance for expected financial analysts, governmental bodies, relevant
credit losses on investments in debt instruments that think‑tanks and other similar organisations, as well
are measured at amortised cost or at FVTOCI, lease as consideration of various external sources of actual
receivables, trade receivables and contract assets, as and forecast economic information that relate to the
well as on financial guarantee contracts. The amount Company’s core operations.
of expected credit losses is updated at each reporting
date to reflect changes in credit risk since initial In particular, the following information is taken into
recognition of the respective financial instrument. account when assessing whether credit risk has
The Company always recognises lifetime ECL for increased significantly since initial recognition:
trade receivables and contract assets. The expected
credit losses on these financial assets are estimated an actual or expected significant deterioration in the
using a provision matrix based on the Company’s financial instrument’s external (if available) or internal
historical credit loss experience, adjusted for factors credit rating;
that are specific to the debtors, general economic
conditions and an assessment of both the current significant deterioration in external market indicators
as well as the forecast direction of conditions at the of credit risk for a particular financial instrument, e.g.
reporting date, including time value of money where a significant increase in the credit spread, the credit
appropriate. For all other financial instruments, the default swap prices for the debtor, or the length of
Company recognises lifetime ECL when there has time or the extent to which the fair value of a financial
been a significant increase in credit risk since initial asset has been less than its amortised cost;
recognition. However, if the credit risk on the financial
instrument has not increased significantly since existing or forecast adverse changes in business,
initial recognition, the Company measures the loss financial or economic conditions that are expected to
allowance for that financial instrument at an amount cause a significant decrease in the debtor’s ability to
equal to 12‑month ECL. Lifetime ECL represents the meet its debt obligations;
expected credit losses that will result from all possible
default events over the expected life of a financial an actual or expected significant deterioration in the
instrument. In contrast, 12‑month ECL represents operating results of the debtor
the portion of lifetime ECL that is expected to result
from default events on a financial instrument that are significant increases in credit risk on other financial
possible within 12 months after the reporting date. instruments of the same debtor;
an actual or expected significant adverse change in the

(i) Significant Increase in Credit Risk regulatory, economic, or technological environment of
In assessing whether the credit risk on a financial
instrument has increased significantly since initial

the debtor that results in a significant decrease in the The Company regularly monitors the effectiveness of
debtor’s ability to meet its debt obligations. the criteria used to identify whether there has been a
significant increase in credit risk and revises them as
Irrespective of the outcome of the above assessment, appropriate to ensure that the criteria are capable of
the Company presumes that the credit risk on a identifying significant increase in credit risk before the
financial asset has increased significantly since amount becomes past due.
initial recognition when contractual payments are
more than 30 days past due, unless the Company (ii) Definition of Default
has reasonable and supportable information that The Company considers the following as constituting
demonstrates otherwise. an event of default for internal credit risk management
purposes as historical experience indicates that
Despite the foregoing, the Company assumes that the financial assets that meet either of the following
credit risk on a financial instrument has not increased criteria are generally not recoverable:
significantly since initial recognition if the financial
instrument is determined to have low credit risk at the zz when there is a breach of financial covenants by
reporting date. A financial instrument is determined the debtor; or
to have low credit risk if:
zz
information developed internally or obtained
from external sources indicates that the debtor
zz The financial instrument has a low risk of default, is unlikely to pay its creditors, including the
zz
The debtor has a strong capacity to meet its Company, in full (without taking into account any
contractual cash flow obligations in the near collateral held by the Company). Irrespective of
term, and the above analysis, the Company considers that
default has occurred when a financial asset is
zz
Adverse changes in economic and business
more than 90 days past due unless the Company
conditions in the longer term may, but will not
has reasonable and supportable information to
necessarily, reduce the ability of the borrower to
demonstrate that a more lagging default criterion
fulfil its contractual cash flow obligations.
is more appropriate.
The Company considers a financial asset to have
(iii) Credit‑Impaired Financial Assets
low credit risk when the asset has external credit
A financial asset is credit‑impaired when one or
rating of ‘investment grade’ in accordance with the
more events that have a detrimental impact on the
globally understood definition or if an external rating
estimated future cash flows of that financial asset
is not available, the asset has an internal rating of
have occurred. Evidence that a financial asset is
‘performing’. Performing means that the counterparty
credit‑impaired includes observable data about the
has a strong financial position and there is no past
following events:
due amounts
(a) significant financial difficulty of the issuer or the

For financial guarantee contracts, the date that
borrower;
the Company becomes a party to the irrevocable
(b) a breach of contract, such as a default or past due
commitment is considered to be the date of initial
event (see (ii) above);
recognition for the purposes of assessing the financial
(c) the lender(s) of the borrower, for economic or
instrument for impairment. In assessing whether there
contractual reasons relating to the borrower’s
has been a significant increase in the credit risk since
financial difficulty, having granted to the borrower a
initial recognition of a financial guarantee contracts,
concession(s) that the lender(s) would not otherwise
the Company considers the changes in the risk that
consider;
the specified debtor will default on the contract.
(d) it is becoming probable that the borrower will enter
bankruptcy or other financial reorganisation; or

(e)
the disappearance of an active market for that ECL in the previous reporting period, but determines
financial asset because of financial difficulties at the current reporting date that the conditions
for lifetime ECL are no longer met, the Company
(iv) Write‑off Policy measures the loss allowance at an amount equal to
The Company writes off a financial asset when there 12‑month ECL at the current reporting date, except
is information indicating that the debtor is in severe for assets for which simplified approach was used.
financial difficulty and there is no realistic prospect
of recovery, e.g. when the debtor has been placed
The Company recognises an impairment gain or
under liquidation or has entered into bankruptcy loss in profit or loss for all financial instruments
proceedings, or in the case of trade receivables, with a corresponding adjustment to their carrying
when the amounts are over two years past due, amount through a loss allowance account, except for
whichever occurs sooner unless in case where there investments in debt instruments that are measured at
is sufficient security. Financial assets written off may FVTOCI, for which the loss allowance is recognised in
still be subject to enforcement activities under the other comprehensive income and accumulated in the
Company’s recovery procedures, taking into account investment revaluation reserve.
legal advice where appropriate. Any recoveries made
are recognised in profit or loss. 2.13 Non-Financial Assets
The carrying amounts of the Company’s non-financial
(v) Measurement and Recognition of Expected Credit assets are reviewed at each reporting date to determine
Losses whether there is any indication of impairment. If any
The measurement of expected credit losses is a such indication exists then the asset’s recoverable
function of the probability of default, loss given amount is estimated. For intangible assets that have
default (i.e. the magnitude of the loss if there is a indefinite useful lives or that are not yet available for
default) and the exposure at default. The assessment use, the recoverable amount is estimated at each
of the probability of default and loss given default is reporting date.
based on historical data adjusted by forward‑looking
information as described above. As for the exposure
The recoverable amount of an asset or cash-
at default, for financial assets, this is represented by generating unit is the greater of its value in use and
the assets’ gross carrying amount at the reporting its fair value less costs to sell. In assessing value in
date; for financial guarantee contracts, the exposure use, the estimated future cash flows are discounted
includes the amount drawn down as at the reporting to their present value using a pre-tax discount rate
date, together with any additional amounts expected that reflects current market assessments of the time
to be drawn down in the future by default date value of money and the risks specific to the asset.
determined based on historical trend, the Group’s An impairment loss is recognised if the carrying
understanding of the specific future financing needs amount of an asset or its cash generating unit
of the debtors, and other relevant forward‑looking exceeds its recoverable amount. Impairment losses
information. are recognized in profit or loss. Impairment losses
are reversed when there is an indication that the
For financial assets, the expected credit loss is impairment loss may no longer exist and there has
estimated as the difference between all contractual been a change in the estimates used to determine the
cash flows that are due to the Company in accordance recoverable amount. An impairment loss is reversed
with the contract and all the cash flows that the Group only to the extent that the asset’s carrying amount
expects to receive, discounted at the original effective does not exceed the carrying amount that would have
interest rate. For a lease receivable, the cash flows been determined, net of depreciation or amortisation,
used for determining the expected credit losses is if no impairment loss had been recognised. A reversal
consistent with the cash flows used in measuring the of an impairment loss is recognised immediately in
lease receivable in accordance with IFRS 16 Leases. the Profit or loss.
If the Company has measured the loss allowance for

a financial instrument at an amount equal to lifetime

2.14 Prepayments determines the net interest expense (income) on

Prepayments are payments made in advance relating the net defined benefit liability (asset) for a period
to the following year and are recognised and carried by applying the discount rate used to measure the
at original amount less amounts utilised in the defined benefit obligation at the beginning of the
statement of profit or loss and other comprehensive annual period to the then net defined benefit liability
income. (asset), taking into account any changes in the net
defined benefit liability (asset) during the period as
At each reporting date, the Company assesses whether a result of contributions and benefit payments. Net
its financial assets have been impaired. Impairment interest expense and other expense related to defined
losses are recognised in the income statement where benefit plans are recognised in the ststement of profit
there is objective evidence of impairment. or loss.
2.15 Employee Benefits When the benefits of a plan are changed or when a
The company operates two benefits scheme for its plan is curtailed, the resulting change in benefit that
employees: relates to past service or gain or loss on curtailment is
recognised immediately in profit or loss. The Company
i) Defined Contribution Pension Scheme recognises gains and losses on the settlement of a
The company operates a defined pension contribution defined benefit plan when the settlement occurs.
plans, based on a percentage of pensionable earnings
funded by both employer (10%) and employees 2.16 Income Tax Liability
(8%), the fund of which are generally administered The tax currently payable is based on taxable profit for
by Pension Fund Administrators. Contributions to the year. Taxable profit differs from profit as reported
these plans are recognised as an expense in profit or in profit or loss because of items of income or expense
loss in the periods during which services are rendered that are taxable or deductible in future years and items
by employees. that are never taxable or deductible. The Company's
liability for current tax is calculated using tax rates
ii) Defined Benefit Schemes that have been enacted or substantively enacted by
The Company's net obligation in respect of defined the end of the reporting period.
benefit plans is calculated separately for each plan
by estimating the amount of future benefits that 2.16.1 Deferred Tax Expenses
employees have earned in the current and prior Deferred tax is recognised on temporary differences
periods, discounting that amount and deducting the between the carrying amounts of assets and liabilities
fair value of any plan assets. in the consolidated financial statements and the
corresponding tax bases used in the computation of
The calculation of defined benefits obligations is taxable profit. Deferred tax liabilities are generally
performed annually by a qualified actuary using the recognised for all taxable temporary differences.
projected unit credit method. When the calculation Deferred tax assets are generally recognised for all
results in a potential asset for the Company, the deductible temporary differences to the extent that
recognised asset is limited to the present alue of it is probable that taxable profits will be available
economic benefits, consideration is given to any against which those deductible temporary differences
applicable minimum funding requirements. can be utilised. Deferred tax is not recognized for
the following temporary differences: (i) the initial
Remeasurements of the net defined benefit liability, recognition of goodwill, (ii) the initial recognition
which comprise actuarial gains and losses, the return of assets or liabilities in a transaction that is not
on plan assets (excluding interest) and the effect of a business combination and that affects neither
the asset ceiling ( if any, excluding interest) and the accounting nor taxable profit, and (iii) differences
effect of the asset ceiling ( if any, excluding interest), relating to investments in subsidiaries and jointly
are recognised immediately in OCI. The Company controlled entities to the extent that it is probable that
they will not reverse in the foreseeable future.


Deferred tax liabilities are recognised for taxable 2.18 Earnings Per Share
temporary differences associated with investments Basic earnings per share is computed by dividing the
in subsidiaries and associates, and interests in profit or loss attributable to owners of the Company by
joint ventures, except where the Company is able the weighted average number of shares outstanding
to control the reversal of the temporary difference during the period.
and it is probable that the temporary difference will
not reverse in the foreseeable future. Deferred tax Diluted earnings per share is calculated by dividing
assets arising from deductible temporary differences the profit or loss attributable to the owners of the
associated with such investments and interests are Company, by the weighted average number of shares
only recognised to the extent that it is probable that outstanding after adjusting for the effects of all
there will be sufficient taxable profits against which dilutive potential ordinary shares.
to utilise the benefits of the temporary differences and
they are expected to reverse in the foreseeable future. 2.19 Statement of Cash Flows
The statement of cash flows shows the changes in
The carrying amount of deferred tax assets is reviewed cash and cash equivalents arising during the period
at each reporting date and reduced to the extent that from operating activities, investing activities and
it is no longer probable that sufficient taxable profits financing activities.
will be available to allow all or part of the asset to be
recovered. The cash flows from operating activities are determined
by using the indirect method. Net income is therefore
Deferred tax liabilities and assets are measured at adjusted by non-cash items, such as changes from
the tax rates that are expected to apply in the period receivables and liabilities. In addition, all income and
in which the liability is settled or the asset realised, expenses from cash transactions that are attributable
based on tax rates (and tax laws) that have been to investing or financing activities are eliminated for
enacted or substantively enacted by the end of the the purpose of preparing the statement.
reporting period. The measurement of deferred tax
liabilities and assets reflects the tax consequences In the statement of cash flows, cash and cash
that would follow from the manner in which the equivalents includes cash in hand, deposit held
Company expects, at the end of the reporting period, at call with banks, other short term highly liquid
to recover or settle the carrying amount of its assets investments with original maturities of three months
and liabilities. or less and bank overdrafts.
2.16.2 Current and Deferred Tax Expenses for the year The cash flows from investing and financing activities
Current and deferred tax are recognised in the are determined by using the direct method.
statement of profit or loss, except when they relate
to items that are recognised in other comprehensive 2.20 Contingencies
income or directly in equity, in which case, the Contingent liabilities are not recognized in the
current and deferred tax are also recognised in statement of financial position but are disclosed
other comprehensive income or directly in equity unless the possibility of any outflow in settlement is
respectively. Where current tax or deferred tax arises remote. A contingent asset is not recognised in the
from the initial accounting for a business combination, statement of financial position but disclosed when an
the tax effect is included in the accounting for the inflow of economic benefits is probable.
business combination.
2.21 Foreign Currency
2.17 Rounding of Amounts In preparing the financial statements of the Company,
All amounts disclosed in the financial statements and transactions in currencies other than the entity's
notes have been rounded off to the nearest thousand presentation currency (foreign currencies) are
currency units unless otherwise stated. recognised at the rates of exchange prevailing at the
dates of the transactions.

At the end of each reporting period , monetary items iv. Post-employment benefit plan which is for the benefit
denominated in foreign currencies are retranslated at the of employees of the company or of any entity that is a
rates prevailing at that date. Non-monetary items carried related party of the company.
at fair value that are denominated in foreign currencies are
retranslated at the rates prevailing at the date when the Key management personnel comprise the Board of
fair value was determined. Non-monetary items that are Directors and key members of management having
measured in terms of historical cost in a foreign currency authority and responsibility for planning, directing and
are not retranslated. controlling the activities of the company.
Foreign exchange gains and losses resulting from the The company enters into transactions with related parties
settlement of such transactions and from the translation at on an arm’s length basis. Prices for transactions with
year-end exchange rates of monetary assets and liabilities related parties are determined using the current market
denominated in foreign currencies are recognised in the price or admissible valuation methods.
statement of profit or loss.
The company includes Company Secretary, Head of all
2.22 Provisions department in its definition of key management personnel.
A Provision is recognized if, as a result of a past event, Disclosure of their compensation such as short term
the company has a present legal or constructive obligation benefit and emolument are stated.
that can be estimated reliably, and it is probable that an
outflow of economic benefits will be required to settle the 2.24 Profit from operations
obligation. Operating profit is the result generated from the continuing
principal revenue producing activities of the company as
The amount recognised as a provision is the best estimate well as other income and expenses related to operating
of the consideration required to settle the present obligation activities. Operating profit excludes net finance costs,
at the end of the reporting period, taking into account the share of profit of equity accounted investees and income
risks and uncertainties surrounding the obligation. When taxes.
a provision is measured using the cash flows estimated
to settle the present obligation, its carrying amount is the 2.25 Share Capital, Reserves and Dividends
present value of those cash flows (when the effect of the (i) Share Capital
time value of money is material). The Company has only one class of shares; ordinary
shares. Ordinary shares are classified as equity.
When some or all of the economic benefits required to Incremental costs directly attributable to the issue of
settle a provision are expected to be recovered from a new ordinary shares or options are shown in equity as
third party, a receivable is recognised as an asset if it is a deduction, net of tax, from the proceeds.
virtually certain that reimbursement will be received and
the amount of the receivable can be measured reliably. (ii) Reserves
Reserves include all current and prior period retained
2.23 Related Party Disclosures earnings, share premium, revaluation reserve and
Parties are considered to be related if one party has the reserve on actuarial valuation of defined benefit
ability to control the other party or exercise significant obligations.
influence over the other party in making financial and
operating decisions. Related parties include: (iii) Dividends
Dividends on ordinary shares are recognised as a
i. Entities over which the company exercises significant liability and deducted from equity when they are
influence approved by the company’s shareholders. Interim
ii. Shareholders and key management personnel of the dividends are deducted from equity when they
company. are declared and no longer at the discretion of the
iii. Close family members of key management personnel company. Dividends for the year that are approved

after the statement of financial position date are income to the extent of any credit balance existing
disclosed as an event after the statement of financial in the equity in respect of that asset and reduces the
position. amount accumulated in equity. All other decreases in
carrying amounts are recognised in profit or loss.
(iv) Share Premium
Premium from the issue of shares are reported in Subsequent Expenditure
share premium. Subsequent Expenditure is capitalised only if it is
probable that the future economic benefits associated
2.26 Property Plant and Equipment with the expenditure will flow to the company and the
cost of the item can be measured reliably. All other
i. Leasehold Land (Right-of-use assets) repair and maintenance expenses are recognised in
The Company recognises right-of-use assets at the profit or loss when incurred.
commencement date of the lease (i.e. the date the
underlying asset is available for use). Right-of-use Depreciation
assets are measured at cost, less any accumulated
Depreciation is calculated over the depreciable
depreciation and impairment losses, and adjusted amount, which is the cost of an asset, or its
for any remeasurement of lease liabilities. The cost subsequent revalued amount less its residual value.
of right-of-use assets includes the amount of lease
liabilities recognised, initial direct costs incurred, and Depreciation on assets under construction does not
lease payments made at or before the commencement commence until they are complete and available for
date less any lease incentives received. Unless the use. Depreciation is provided on all other items of
Company is reasonably certain to obtain ownership property, plant and equipment so as to write off their
of the leased asset at the end of the lease term, the carrying value over their expected useful lives.
recognised right-of-use assets are depreciated on a
straight-line basis over the shorter of its estimated Years of useful lives
useful life and the lease term. Right-of-use assets are Leasehold Land 15 years
subject to impairment.
Computer Equipment 5 years
ii. Other Property, Plant and Equipment Building 28.5 years
All other items of property, plant and equipment are Plant and Machinery 10 years
initially recognised at cost and subsequently carried at Furniture and Fittings 4 years
the revalued amounts less accumulated depreciation Office Equipment 5 years
and accumulated impairment losses.
Motor Vehicle 4 years

Cost includes directly attributable costs and the
estimated present value of any future unavoidable
Any gain or loss arising on de-recognition of the
costs of dismantling and removing items. The
asset (calculated as the difference between the net
corresponding liability is recognised within
disposal proceeds and the carrying amount of the
provisions. However, the company does not have
asset) is charged to income in the year the asset is
such dismantling cost provisioning.
derecognized.
Increases in carrying amounts arising from revaluation

Capital Work-in-Progress
are recognised in other comprehensive income

Capital work-in-progress is stated at cost less
and accumulated in equity, unless they reverse a
impairment in value, if any. It consists of expenditure
revaluation decrease of the same asset previously
incurred and advances made in respect of tangible
recognised in profit or loss. In this case, the increase
fixed assets in the course of their erection, installation
are recognised in profit or loss. Decreases in carrying
and acquisition.
amounts are recognised in other comprehensive


This includes cost of construction, plant and the carrying amount of the goodwill allocated to the
equipment and other direct costs plus borrowing CGU if any, and then, to the other assets of the unit
costs which includes interest charges used to finance pro rata on the basis of the carrying amount of each
these projects during the construction period to the asset in the unit. After the impairment loss, the new
extent that they are regarded as an adjustment to carrying value of the asset is depreciated prospectively
borrowing costs. over its remaining life.

Capital work-in-progress is not depreciated until Assets other than goodwill that suffered impairment
such time as the assets are completed and ready are reviewed for possible reversal of the impairment
for operational use which are transferred to the at each year end. The carrying value of the assets,
relevant category of property, plant and equipment revised due to the increase of the recoverable value
and depreciated in accordance with the depreciation of the assets, cannot exceed the carrying amount (net
policy. of depreciation) that would have been determined
had no impairment been recognized in prior periods.
2.27 Impairment of Non-Financial Assets Such reversal is recognized in the statement of profit
The carrying amounts of the Company’s non-financial or loss.
assets are reviewed at each reporting date to determine
whether there is any indication of impairment. If any The following criteria are also applied in assessing
such indication exists then the asset’s recoverable impairment of specific assets:
amount is estimated. For intangible assets that have
indefinite useful lives or that are not yet available for a) Goodwill
use, the recoverable amount is estimated at each Goodwill is tested for impairment annually as at 31
reporting date. December and when circumstances indicate that
the carrying value may be impaired. Impairment is

The recoverable amount of an asset or cash- determined for goodwill by assessing the recoverable
generating unit is the greater of its value in use and amount of each CGU (or group of CGUs) to which
its fair value less costs to sell. In assessing value in the goodwill relates. Where the recoverable amount
use, the estimated future cash flows are discounted of the cash-generating unit is less than their
to their present value using a pre-tax discount rate carrying amount, an impairment loss is recognised.
that reflects current market assessments of the time Impairment losses relating to goodwill cannot be
value of money and the risks specific to the asset. An reversed in future periods.
impairment loss is recognised if the carrying amount
of an asset or its cash generating unit exceeds its b) Software
recoverable amount. Impairment losses are recognised Intangible assets with indefinite useful lives are tested
in the statement of profit or loss. Impairment losses for impairment annually as at 31 December either
are reversed when there is an indication that the individually or at the CGU level, as appropriate and
impairment loss may no longer exist and there has when circumstances indicate that the carrying value
been a change in the estimates used to determine the may be impaired
recoverable amount. An impairment loss is reversed
only to the extent that the asset’s carrying amount 2.28 Lease
does not exceed the carrying amount that would have The Company as a lessee
been determined, net of depreciation or amortisation, The Company assesses whether a contract is or
if no impairment loss had been recognised. A reversal contains a lease, at inception of the contract. The
of an impairment loss is recognised immediately in Company recognises a right-of-use asset and a
the profit or loss. corresponding lease liability with respect to all lease
arrangements in which it is the lessee, except for
When an impairment loss is recognized for a cash- short-term leases (defined as leases with a lease term
generating unit, the loss is allocated first to reduce of 12 months or less) and leases of low value assets

(such as tablets and personal computers, small ii The lease term has changed or there is a significant
items of office furniture and telephones). For these event or change in circumstances resulting in a
leases, the Company recognises the lease payments change in the assessment of exercise of a purchase
as an operating expense on a straight-line basis option, in which case the lease liability is remeasured
over the term of the lease unless another systematic by discounting the revised lease payments using a
basis is more representative of the time pattern in revised discount rate.
which economic benefits from the leased assets are
consumed. The lease payments change due to changes in an
index or rate or a change in expected payment under
The lease liability is initially measured at the present a guaranteed residual value, in which cases the lease
value of the lease payments that are not paid at the liability is remeasured by discounting the revised
commencement date, discounted by using the rate lease payments using an unchanged discount rate
implicit in the lease. If this rate cannot be readily (unless the lease payments change is due to a change
determined, the Company uses its incremental in a floating interest rate, in which case a revised
borrowing rate. discount rate is used).
Lease payments included in the measurement of the A lease contract is modified and the lease modification
lease liability comprise: is not accounted for as a separate lease, in which
case the lease liability is remeasured based on the
i Fixed lease payments (including in-substance fixed lease term of the modified lease by discounting the
payments), less any lease incentives receivable; revised lease payments using a revised discount rate
at the effective date of the modification.
Variable lease payments that depend on an index or
rate, initially measured using the index or rate at the
The right-of-use assets comprise the initial
commencement date; measurement of the corresponding lease liability,
lease payments made at or before the commencement
The amount expected to be payable by the lessee day, less any lease incentives received and any initial
under residual value guarantees; direct costs. They are subsequently measured at
cost less accumulated depreciation and impairment
The exercise price of purchase options, if the lessee is losses.
reasonably certain to exercise the options; and
Whenever the Company incurs an obligation for costs
Payments of penalties for terminating the lease, if to dismantle and remove a leased asset, restore the
the lease term reflects the exercise of an option to site on which it is located or restore the underlying
terminate the lease. asset to the condition required by the terms and
conditions of the lease, a provision is recognised and
The lease liability is presented as a separate line in measured under IAS 37. To the extent that the costs
the consolidated statement of financial position. relate to a right-of-use asset, the costs are included in
the related right-of-use asset, unless those costs are

The lease liability is subsequently measured by incurred to produce inventories.
increasing the carrying amount to reflect interest on
the lease liability (using the effective interest method) Right-of-use assets are depreciated over the shorter
and by reducing the carrying amount to reflect the period of lease term and useful life of the underlying
lease payments made. asset. If a lease transfers ownership of the underlying
asset or the cost of the right-of-use asset reflects that
The Company remeasures the lease liability (and the Company expects to exercise a purchase option,
makes a corresponding adjustment to the related the related right-of-use asset is depreciated over the
right-of-use asset) whenever: useful life of the underlying asset. The depreciation
starts at the commencement date of the lease.

The right-of-use assets are presented as a separate Company’s net investment outstanding in respect of
line in the consolidated statement of financial the leases.
position.
When a contract includes both lease and non-lease
The Company applies IAS 36 to determine whether components, the Company applies IFRS 15 to
a right-of-use asset is impaired and accounts for any allocate the consideration under the contract to each
identified impairment loss. component.
Variable rents that do not depend on an index or rate 2.29 Investment Properties
are not included in the measurement the lease liability Investment properties are properties held to earn
and the right-of-use asset. The related payments are rentals. Investment properties are stated at cost
recognised as an expense in the period in which and not at fair value determined at reporting date
the event or condition that triggers those payments by an independent sworn appraiser based on market
occurs. evidence of the most recent prices achieved in arm’s
length transactions of similar properties in the same

As a practical expedient, IFRS 16 permits a areas.
lessee not to separate non-lease components, and
instead account for any lease and associated non- Investment properties are measured initially at cost,
lease components as a single arrangement. The including transaction costs. Subsequent to initial
Company has not used this practical expedient. For recognition, investment properties are stated at
a contracts that contain a lease component and one fair value, which reflects market conditions at the
or more additional lease or nonlease components, reporting date. Gains or losses arising from changes
the Company allocates the consideration in the in the fair values of investment properties are included
contract to each lease component on the basis of in statement of profit or loss in the period in which
the relative stand-alone price of the lease component they arise, including the corresponding tax effect. Fair
and the aggregate stand-alone price of the nonlease values are determined based on an annual evaluation
components. performed by an accredited external, independent
valuer, applying a valuation model recommended by
The Company as a lessor the regulatory authorities.
Leases for which the Company is a lessor are classified
as finance or operating leases. Whenever the terms Investment properties are derecognised either when
of the lease transfer substantially all the risks and they have been disposed of or when the investment
rewards of ownership to the lessee, the contract is property is permanently withdrawn from use and no
classified as a finance lease. All other leases are future economic benefit is expected from its disposal.
classified as operating leases. The difference between the net disposal proceeds
and the carrying amount of the asset is recognised
Rental income from operating leases is recognised in the statement of profit or loss in the period of
on a straight-line basis over the term of the relevant derecognition.
lease. Initial direct costs incurred in negotiating
and arranging an operating lease are added to the Transfers are made to (or from) investment property
carrying amount of the leased asset and recognised only when there is a change in use. For a transfer
on a straight-line basis over the lease term. from investment property to owner-occupied
property, the deemed cost for subsequent accounting
Amounts due from lessees under finance leases is the fair value at the date of change. If owner-
are recognised as receivables at the amount of the occupied property becomes an investment property,
Company’s net investment in the leases. Finance the Company accounts for it in accordance with the
lease income is allocated to accounting periods so policy stated under property, plant and equipment up
as to reflect a constant periodic rate of return on the to the date of change.

3 Application of new and revised International New and revised IFRSs in issue but not yet
Financial Reporting Standards (IFRSs) effective
3.1 New and revised IFRSs/IFRICs affecting Amendment to IFRS 16 – Leases on sale and
amounts reported and/or disclosures in these leaseback
financial Statement These amendments include requirements for sale and
leaseback transactions in IFRS 16 to explain how an
In the current year, the Company has applied a entity accounts for a sale and leaseback after the date
number of amendments to IFRSs issued by the of the transaction. Sale and leaseback transactions
International Accounting Standards Board (IASB) that where some or all the lease payments are variable
are mandatorily effective for an accounting periods lease payments that do not depend on an index or
that begin on or after 1 January 2023. rate are most likely to be impacted
Classification of Liabilities as Current or Non- The implementation of the Standard is unlikely to

Current (Amendments to IAS 1) bring significant changes entity’s processes, systems
The amendment applies to annual periods beginning and financial statements as the Company does not
on or after 1 January 2023, with earlier application hold insurance contracts.
permitted. The amendments aim to promote
consistency in applying the requirements by helping IFRS 16 is effective for annual reporting periods
companies determine whether, in the statement of beginning on or after 1 January 2024
financial position, debt and other liabilities with an
uncertain settlement date should be classified as Amendment to IAS 1 – Non-current liabilities with
current (due or potentially due to be settled within covenants
one year) or non-current. These amendments clarify how conditions with which
an entity must comply within twelve months after the
These amendments had no impact on the financial reporting period affect the classification of a liability.
statements of, nor is there expected to be any future The amendments also aim to improve information an
impact on the Company. entity provides related to liabilities subject to these
conditions.
IFRS 17 Insurance Contracts

The new Standard establishes the principles for The amendments is not expected to have a significant
the recognition, measurement, presentation and impact on the financial statements.
disclosure of insurance contracts and supersedes
IFRS 4 Insurance Contracts. The Standard outlines Amendment to IAS 7 and IFRS 7 - Supplier finance
a General Model, which is modified for insurance These amendments require disclosures to enhance
contracts with direct participation features, described the transparency of supplier finance arrangements
as the Variable Fee Approach. The General Model is and their effects on an entity’s liabilities, cash
simplified if certain criteria are met by measuring the flows and exposure to liquidity risk. The disclosure
liability for remaining coverage using the Premium requirements are the IASB’s response to investors’
Allocation Approach. The General Model will use concerns that some companies’ supplier finance
current assumptions to estimate the amount, timing arrangements are not sufficiently visible, hindering
and uncertainty of future cash flows and it will investors’ analysis
explicitly measure the cost of that uncertainty, it takes
into account market interest rates and the impact of The amendments is not expected to have a significant
policyholders’ options and guarantees. impact on the financial statements.
These amendments had no impact on the financial

statements of the company.

4. Critical Accounting Estimates and Judgements provisions and disclosures in its financial statements.

The Company makes certain estimates and Among the factors considered in making decisions
assumptions regarding the future. Estimates and on provisions are the nature of litigation, claim or
judgements are continually evaluated based on assessment, the legal process and potential level of
historical experience as other factors, including damages in the jurisdiction in which the litigation,
expectations of future events that are believed to be claim or assessment has been brought, the progress
reasonable under the circumstances. In the future, of the case (including the progress after the date of
actual experience may differ from these estimates the financial statements but before those statements
and assumptions. The estimates and assupmtions are issued), the opinions or views of legal advisers,
that have a significant risk of causing a material experience on similar cases and any decision of the
adjustment to the carrying amounts of assets and Company's management as to how it will respond to
liabilities within the next financial year are: the litigation, claim or assessment.
(a) Income and Deferred Tax Expenses (d) Trade Receivables

The Company incurs significant amounts of income
The Company assesses its trade receivables for
taxes payable, and also recognises significant changes probability of credit losses. Management considers
to deferred tax assets and deferred tax liabilities, all of several factors including past credit record, current
which are based on management’s interpretations of financial position and credibility of management,
applicable laws and regulations. The quality of these judgement is exercised in determining the allowances
estimates is highly dependent upon management’s made for credit losses.
ability to properly apply at times a very complex sets
of rules, to recognise changes in applicable rules and, (e) Employee Benefit Obligation (Defined Benefit
in the case of deferred tax assets, management’s Plan)
ability to project future earnings from activities that The cost of the defined benefit plans and the present
may apply loss carry forward positions against future value of retirement benefit obligations and long service
income taxes. awards are determined using actuarial valuations.
An actuarial valuation involves making various
(b) Impairment of Property, Plant and Equipment assumptions that may differ from actual developments
The Company assesses assets or groups of assets for in the future. These include the determination of the
impairment annually or whenever events or changes discount rate, future salary increases, mortality rates
in circumstances indicate that carrying amounts of and changes in inflation rates. Due to the complexities
those assets may not be recoverable. In assessing involved in the valuation and its long-term nature,
whether a write-down of the carrying amount of a these obligations are highly sensitive to changes in
potentially impaired asset is required, the asset’s assumptions.
carrying amount is compared to the recoverable
amount. Frequently, the recoverable amount of an (f) Impairment of Goodwill
asset proves to be the Company’s estimated value in
The Company assesses its goodwill for possible
use. impairment if there are events or changes in
circumstances that indicate that carrying values of the
The estimated future cash flows applied are based cash generating unit (CGU) may not be recoverable,
on reasonable and supportable assumptions over or atleast at every reporting date.
the remaining useful life of the cash flow generating
assets. The assessment for impairment entailed comparing
the carrying value of the cash generating unit
(c) Legal Proceedings containing the goodwill with its recoverable amount.

The Company reviews outstanding legal cases The recoverable amount is based on an estimate
following developments in the legal proceedings and of the value in use of these assets. Value in use is
at each reporting date, in order to assess the need for determined on the basis of discounted estimated

future net cash flows. During the year, the Company

The company's financial instruments are exposed to
recognised no impairment losses in respect of
certain financial risk including credit risk, liquidity
goodwill. See further details in Notes 15.
risk, commodity risk and interest rate risk. The
company's exposure to these risks and its methods of
5. RISK MANAGEMENT managing the risks remain consistent.
The Board of Directors has overall responsibility for The Board of Directors reviews and agrees policies for
the determination of the Company's risk management managing each of these risks which are summarised
objectives and policies and, whilst retaining ultimate below:
responsibility for them, it has delegated the authority
for designing and operating processes that ensure 5.1 CREDIT RISK
effective implementation and policies through the Credit risk is the risk of financial loss to the Company
company's senior management. if a customer or counterparty to a financial instrument
fails to meet its contractual obligations.

The Company’s senior management oversees
the management of these risks. The Company’s
Management assesses the credit risk of new
senior management is supported by a financial risk customers before entering into contracts with such
committee that advises on financial risks and the customers. Purchase limits are established for each
appropriate financial risk governance framework for customer based on the credit risk assessment.
the Company. The financial risk committee provides
assurance to the Company’s senior management
Management determines concentrations of credit
that the Company’s financial risk-taking activities risk by quarterly monitoring the creditworthiness of
are governed by appropriate policies and procedures existing customers and through a monthly review of
and that financial risks are identified, measured and the trade receivables' ageing analysis.
managed in accordance with company policies and
risk appetite.
The Company's current credit risk grading framework comprises the following categories
Category Description Basis for recognising Expected Credit Losses

The counter party has a low risk default and does
Performing not have any past due amounts 12 - Month ECL
Amount> 30 days past due or there has been
a significant increase in credit risk since initial
Doubtful recognition Lifetime ECL- not credit impaired
Amount is > 90 days past due or there is evidence
In default indicating the assets is credit impaired. Lifetime ECL- credit impaired
There is evidence indicating that the debtor is in
severe financial difficulty and the company has no
Write-off realistic prospect of recovery Amount is written off
For trade and other receivables, the company has applied the simplified approach in IFRS 9 to measure the loss
allowance at lifetime ECL. The Company determines the expected credit losses on these items by making provisions
based on historical credit loss experience, past due status of the customers, adjusted as appropriate to reflect current
conditions and estimates of future economic conditions. Accordingly, the credit profile of these assets is presented
based on their past due status. Further disclosures regarding trade and other receivables which are neither past due
nor impaired are provided in Note 17


5.2 Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company
has a planning and budgeting process in place to help determine the funds required to support the company's normal
operating requirements on an ongoing basis and its expansionary plans.
The Company ensures that there are sufficient funds to meet its short-term business requirements, taking into account its
anticipated cash flows from operations and its holdings of cash and cash equivalents.
The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. Access to
sources of funding is sufficiently available and debt maturing within 12 months can be rolled over with existing lenders.
To achieve this aim, it seeks to maintain cash balances (or agreed facilities) to meet expected requirements for a period of
not less than 90days.
The following table sets out the contractual maturities (representing undiscounted contractual cash-flows) of financial
liabilities:
Less Than 3 to 12
On Demand 3 months months Above 1 year Total
As at 31 December 2023 N'000 N'000 N'000 N'000 N'000
Financial Liabilities
Borrowings - - 124,403 3,372,124 3,496,527
Trade and Other Payables 376,219 1,128,656 877,844 125,406 2,508,124
376,219 1,128,656 1,002,248 3,497,531 6,004,652
Less Than 3 to 12
On Demand 3 months months Above 1 year Total
As at 31 December 2022 N'000 N'000 N'000 N'000 N'000
Borrowings - - 124,403 3,372,124 3,496,527
Trade and Other Payables 376,219 1,128,656 877,844 125,406 2,508,124
376,219 1,128,656 1,002,248 3,497,531 6,004,652
Value added tax, withholding tax, prepayment, advance to suppliers, provisions and other statutory related items are not
included as part of financial instruments.

5.3 Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Company is exposed to interest rate risk on its loans. The risk that the Company will realize a
loss as a result of a decline in the fair value of loans is limited because the company's loans are based on market interest
rate. The Company monitors its exposure to interest rates annually.
5.4 Foreign Exchange Risk

Foreign exchange risk arises when the Company enters into transactions denominated in a Currency other than its functional
Currency and this is very significant considering that the Company has assets denominated in foreign currency.
The Company is exposed to foreign exchange risk from its domiciliary accounts with commercial banks. The carrying
amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the end of the
reporting period are as follows:
Assets Liabilities Assets Liabilities

2023 2023 2022 2022
Cash and Cash Equivalents N'000 N'000 N'000 N'000
US dollars ($) 437,031 - 238,024 -

Pound Sterling (£) 4,171 - 4,347 -
Euro 5,045 - 1,292 -
5.5 Capital Management

Capital consists of share capital, retained earnings and other reserves attributable to the equity holders of the company.
The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and
healthy capital ratios in order to support its business and maximise shareholders value.
The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions. To
maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to
shareholders or issue new shares.
The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company’s
policy is to keep the gearing ratio between 35% and 50%. Included within net debt are interest bearing loans and
borrowings, trade and other payables less cash and cash equivalents:
Assets Assets
N'000 N'000
Borrowings 3,496,527 3,635,450

Trade and other payables 4,123,184 3,550,928
Less: Cash and short-term deposits (2,465,108) (4,383,740)
Net debt 5,154,604 2,802,638
Equity 22,780,348 19,537,921
Capital and net debt 27,934,952 22,340,559
Gearing ratio - Net debt divided by (capital/equity plus net debt) (%) 18.45 12.55

5.6 Fair value of financial assets and liabilities
The fair values of financial assets and liabilities are the same as their carrying amounts shown in the statement of financial
position.
The table below shows the analysis of the financial assets and liabilities:
31 December, 2023 31 December, 2022

Carrying Value Fair Value Carrying Value Fair Value
N'000 N'000 N'000 N'000
Financial Assets
Cash and Bank Balances 950,488 950,488 4,015,148 4,015,148
Short Term Investment 1,514,620 1,514,620 368,593 368,593
Trade and Other Receivables 7,413,378 7,413,378 2,867,265 2,867,265
9,878,486 9,878,486 7,251,005 7,251,005
Borrowings 3,496,527 3,496,527 3,635,450 3,635,450
Trade and Other Payables 2,508,124 2,508,124 2,173,519 2,173,519
6,004,652 6,004,652 5,808,969 5,808,969
Value added tax, withholding tax, prepayment, advance to suppliers, provisions and other statutory related items are not
included as part of financial instruments.
5.7 Financial instruments by category
31 December, 2023 31 December, 2022

Financial Financial Financial Financial
Assets Liabilities Assets Liabilities
Amortized Cost Amortized Cost Amortized Cost Amortized Cost
N'000 N'000 N'000 N'000
Financial Assets
Cash and Bank Balances 950,488 - 4,015,148 -
Trade and Other Receivables 7,413,378 - 2,867,265 -
Borrowings - 3,496,527 - 3,635,450
Trade and Other Payables - 2,508,124 - 2,173,519
9,878,486 6,004,652 7,251,005 5,808,969

6 REVENUE
The Company generates revenue primarily from foreign and domestic handling, cargo handling and equipment rental.
Other sources of revenue include rental income from investment properties.
2023 2022
N'000 N'000
Revenue from contract with Customers 16,546,685 11,125,330

Total Revenue 16,546,685 11,125,330
6.1 Disaggregation of revenue from contracts with customers:

The revenue from contracts with customers is disaggregated by major service lines and timing of revenue
recognition.
2023 2022
N'000 N'000
i. Major Service Lines

Foreign Handling 4,028,594 2,450,711
Domestic Handling 2,117,825 1,974,486
Ad-hoc Handling 22,327 36,454
Cargo Handling -Import 7,273,109 4,909,265
Cargo Handling -Export 1,162,788 670,908
VIP Lounge Service Income 57,911 15,277
Hajj Operations 664,399 173,835
Equipment Rental 1,086,770 833,150
Haulage/Crew Bus Services 1,740 23,421
DCS/PAX Handling Income - 1,150
Airport Security Services 58,262 36,673
Christian Pilgrimage Handling 72,961 -
16,546,685 11,125,330
Discount Allowed - -
16,546,685 11,125,329
ii. Timing of revenue recognition
Service transferred at a point in time - -
Service transferred over time 16,546,685 11,125,330
16,546,685 11,125,330

6.2 Contract balances

The following provides information about receivables, contract assets and contract liabilities from contracts with
customers:
2023 2022
N'000 N'000
Receivables, which are included in ‘trade and other receivables’ 3,668,658 2,135,888
Contract liabilities 59,496 43,767
3,728,154 2,179,655
The contract liabilities primarily relate to the advance consideration received from tenants for rent of the investment
properties, for which revenue is recognised upon usage by the tenants.
6.3 Performance obligations and revenue recognition policies

Revenue is measured based on the consideration specified in a contract with a customer. The Company recognises
revenue when it transfers control over a good or service to a customer.

6.4 Description of Major Sources of income:
Foreign and Domestic Handling: This include income from aircraft handling raised for Ramp Services, passenger
profiling, security and baggage handling (Loading and off-loading).
Cargo Handling: These includes income from Cargo documentation services rendered to airlines which include import
and export cargo facilitation through Nigeria's biggest network of customers bonded warehouses in Lagos, Kano,
Abuja and Port-Harcourt, using Hermes computerisation system, which ensures safe storage and easy retrieval of
cargos
Equipment Rental and Maintenance: The company leases it equipment to airlines for services that are not covered in
the standard Ground Handling Agreement.

7 DIRECT COST
-"
2023 2022
N'000 N'000
Cargo Shed/ Warehouse 750,895 612,128

Concession Fees 887,853 581,330
Pax Handling - -
Oil and Lubricants 272,941 228,684
VIP Lounge 29,588 3,562
DCS/Check-In Counter Expenses 58,119 37,019
Baggage Logistics Expenses 9,342 2,753
Equipment Running 874,521 809,410
Equipment Repairs 1,068,802 641,020
RAMP Expenses 125,555 200,515
Hajj Operation 64,029 7,044
Christian Pilgrimage 1,539 987
Crew Bus Operation expenses - 7,040
Direct Labour Cost 2,387,693 1,993,757
Other Direct Costs 27,552 30,204
Miscellaneous Cost 97,183 51,835
6,655,611 5,207,287
Depreciation 1,695,090 1,551,997
8,350,701 6,759,284
Expenses by nature have been disclosed in the statement of comprehensive income as above. Costs directly relates to
income generating activities are labelled as direct cost. Depreciation of assets used directly in generating revenue are
classified as part of direct cost.
8 OTHER INCOME
2023 2022
N'000 N'000
Scraps 33,683 177,996

Refund 72,215 63,155
Rental Income from Investment Properties 188,014 234,262
293,912 475,413

9 ADMINISTRATION EXPENSES
2023 2022
N'000 N'000
Employee Benefit Expenses (Note 11) 2,367,343 1,582,775

Depreciation and Amortisation 459,032 470,862
Printing and Stationery 105,258 84,066
Transport and Traveling 310,064 166,432
Vehicle Running Expenses 101,800 72,730
Telecommunication and Courier 40,455 39,240
Staff Training and Development 104,465 99,007
Advertisement and Publications 19,903 12,592
Public Relations 68,239 51,915
Sales Promotion 114,946 5,986
Subscription 5,956 5,819
Newspaper, Periodical and Magazine 1,110 1,244
Rent and Electricity 248,202 270,204
Medical Expenses 197,773 206,007
Insurance Premium 83,230 78,128
Legal Expenses 1,869 5,352
Audit Fees (Note 9(a)) 9,675 9,675
Repairs of Office Equipment 3,751 4,801
Repairs and Maintenance of Building 198,883 158,574
Repair of Furniture and Fittings 22,956 27,334
Entertainment 47,791 30,134
Gifts and Donations 122,151 71,649
Hotel and Accommodation 9,947 19,457
Computer Support and Accessories 145,134 96,982
Lighting and Fitting Expenses 30,067 16,179
Premises Upkeep and Cleaning 70,805 63,788
Special Security Expenses 26,277 28,425
Office Running Expenses 24,039 15,006
Board Meeting Expenses 28,437 21,103
Recruitment Expenses - 6
Professional and Business Fees 51,662 61,908
Directors Expenses 128,000 85,617
Bank Charges 46,325 36,353
Government Levies 13,846 9,716
Impairment Allowance on Receivables 217,724 128,073
Uniforms and Aprons Expenses 118,350 37,241
5,545,464 4,074,381

9(a) AUDIT AND NON- AUDIT SERVICES
2023 2022
N'000 N'000
i) Audit Services 9,675 9,675

ii) Non- Audit Services - -
9,675 9,675
10 FINANCE INCOME AND FINANCE COST
2023 2022
N'000 N'000
Finance Income 400,283 19,829

Interest Income 400,283 19,829
Finance Expense 367,214 73,133

Interest on Loan 347,213 241,412
Interest on Defined Benefit Obligation 714,428 314,546
- 2,780
Foreign Exchange Loss 714,428 317,325
No Interest was capitalized to property, plant and equipment during the year (2022: Nil)
The schedule below shows the exchange rates presented in one unit of foreign currency to Naira for the significant
currencies used in the company
2023 2022
Year end rate Year end rate
United States Dollar to Naira 898.89 448.55

Great Britain Pound Sterling to Naira 1,143.30 540.10

11 EMPLOYEE BENEFIT EXPENSES
2023 2022
N'000 N'000
Salaries and Wages 905,649 716,854

Pension Fund Contribution 55,452 44,215
Leave Allowance 66,619 51,251
Gratuity and Terminal Benefits 659,439 467,756
Long Service Award - -
Overtime 34,513 36,024
13th Month Salary 238,017 192,384
Other Allowance 16,093 15,480
ITF Contribution 30,642 24,739
NSITF Employee Compensation 26,023 22,906
Staff Welfare Expenses 334,895 11,167
2,367,343 1,582,775
11.1 The Average number of employees per department:
2023 2022
Number Number
Operations 1,774 1,312

Administrations 39 45
1,813 1,357
11.2 Employees remuneration Scale

2023 2022
Number Number
RANGE
< 1,000,000 729 594
1,000,000-2,000,000 837 413
2,000,001-3,000,000 190 52
3,000,001-4,000,000 29 13
4,000,001-5,000,000 15 11
5,000,001-6,000,000 4 -
6,000,001-7,000,000 - -
7,000,001-8,000,000 3 -
8,000,001-15,000,000 6 3
1,813 1086

11.3 Directors' Remuneration:
2023 2022
N'000 N'000
Directors' Remuneration 180,950 155,817

Board Meeting Expenses 28,437 21,103
209,387 176,920
12 Profit for the year
2023 2022
N'000 N'000
Profit for the year

Profit for the year is arrived at after deducting or charging the following:
Depreciation of Property, Plant and Equipment 2,125,083 1,992,747

Auditors' Remuneration 9,675 9,675
Employee Benefits Expense 2,367,343 1,582,775

13. PROPERTY, PLANT AND EQUIPMENTS

Motor Furniture,
Leasehold Vehicle and Plant and Fixture and Computer Office Sundry
Land Building Trucks Machinery Fittings Equipment Equipment Tools Total
N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000
Cost:
At 1 January 2023 40,950 5,065,492 526,676 16,476,845 790,326 145,370 250,806 131,296 23,427,761
Additions - 497,553 62,403 2,282,702 55,039 32,552 9,909 8,215 2,948,373
At 31 December 2023 40,950 5,563,046 589,078 18,759,547 845,365 177,922 260,715 139,511 26,376,134
At 1 January 2022 40,950 4,863,535 404,293 14,274,720 734,111 116,160 250,328 113,560 20,797,657
Additions - 201,957 122,383 2,202,125 56,215 29,209 478 17,736 2,630,103
At 31 December 2022 40,950 5,065,492 526,676 16,476,845 790,326 145,370 250,806 131,296 23,427,761
Accumulated Depreciation:
At 1 January 2023 30,030 889,657 300,350 6,925,097 640,872 83,170 217,648 82,032 9,168,856
Charge for the year 9,828 192,321 94,985 1,695,115 65,068 21,853 20,833 25,080 2,125,083
At 31 December 2023 39,858 1,081,977 395,335 8,620,213 705,940 105,023 238,482 107,111 11,293,939
At 1 January 2022 30,030 705,717 212,469 5,373,100 556,215 65,093 175,637 57,713 7,175,974
Charge for the year - 183,940 87,881 1,551,997 84,657 18,077 42,011 24,319 1,992,882
At 31 December 2022 30,030 889,657 300,350 6,925,097 640,872 83,170 217,648 82,032 9,168,856
Carrying amount:
At 31 December 2023 1,092 4,481,068 193,743 10,139,334 139,425 72,899 22,233 32,399 15,082,194
At 31 December 2022 10,920 4,175,836 226,326 9,551,747 149,454 62,200 33,158 49,264 14,258,905
Property, plant and equipment includes right‑of‑use assets of NGN10.9Million (2022: NGN10.9 Million) related to
leased hold land.
13.1 Revaluation
The Company's Property, Plant and Equipment were revalued on March 29 , 2018 by Messrs. Ubosi Eleh & Company
(FRC/2014/NIESV/00000003997) an accredited independent valuer who has valuation experience for similar offices
using the Market Value Basis of valuation.
Leasehold Land is stated at cost and as such do not fall under any class of the revalued assets by the Independent
Valuers.
13.2 Assets pledged as security

Borrowings are secured by a debenture on fixed and floating assets of the company (Note 20).
13.3 Depreciation charged during the period are included in:

2023 2022
N'000 N'000
Cost of Sales 1,695,090 1,551,997

Administrative Expenses 429,993 440,750
2,125,083 1,992,747

14 INVESTMENT PROPERTIES
Building
N'000
Cost
At 1 January 2023 851,188
Additions 26,364
At 31 December 2023 877,553
At 1 January 2022 844,173

Additions 7,015
At 31 December 2022 851,188
Accumulated Depreciation
At 1 January 2023 116,658
Charge for the period 27,268
At 31 December 2023 143,926
At 1 January 2022 88,316

Charge for the year 28,342
At 31 December 2022 116,658
Carrying amount
At 31 December 2023 733,627
At 31 December 2022 734,531
The fair value of the Investment Properties as at the reporting period was N1.264 billion (2022: N1.398 billion).
The investment property was independently valued by J. Ajayi Patunola & Co. (a registered estate surveyor & valuer)
FRC/2013/0000000000679 as at 31 December 2023 (2022: J. Ajayi Patunola & Co.(a registered estate surveyor &
valuer) FRC/2013/0000000000679 ), using the open market value. The rental income arising from these properties
during the year is included in Other Revenue.
The Investment properties are depreciated using the straight-line method. The rate of depreciation used is 3.5% based
on the useful lives of the lease on the landed property.
a) Description of the Investment Properties

Investment properties include Skyway Aviation Handling Company Plc. corporate office and Skyway Aviation Handling
Company Plc. Office Complex located at Murtala Mohammed Airport Lagos State, Nigeria which were made available
for rental during the year.

b) Net amounts recognised in the statement of profit or loss for investment properties are as follows:
2023 2022
N'000 N'000
Rental income 188,014 234,262

Direct operating expenses (39,777) (31,715)
Depreciation (27,268) (28,342)
120,969 174,205
Depreciation has been included in Administrative Expenses in the Statement of Profit or Loss and Other Comprehensive
Income.
c) Non-current assets pledged as security

Refer to note 20 for information on non-current assets pledged as security by the company.
d) Contractual Obligations
The Company's lease agreement with FAAN on the Investment Property Lands places a restriction on the realization
of the investment properties. The company has no contractual obligations to purchase the Land but can construct or
develop investment properties or for repairs, maintenance and enhancements.
e) Leasing arrangements
Some of the investment properties are leased to tenants under long-term operating leases with rentals payable annually.
Minimum lease payments under non-cancellable operating leases of investment properties recognised in the financial
statements as payables are as follows:
2023 2022
N'000 N'000
Within one year 46,014 35,014

Later than one year but not later than 5 years 13,483 8,753
59,496 43,767

15 INTANGIBLE ASSETS
Website Software Goodwill Total

N'000
Cost
Balance at 1 January 2023 1,050 26,320 4,057,388 4,084,758
Addition - - - -
Balance at 31 December 2023 1,050 26,320 4,057,388 4,084,758
Balance at 1 January 2022 1,050.00 10,302.00 4,057,388 4,068,740

Addition - 16,017.50 - 16,018
Balance at 31 December 2022 1,050 26,320 4,057,388 4,084,758
Amortisation
Balance at 1 January 2023 298 3,451 - 3,748
Impairment Loss - - - -
Amortisation - 1,770 - 1,770
Balance at 31 December 2023 298 5,221 - 5,518
Balance at 1 January 2022 298 1,681 - 1,978

Impairment Loss - - - -
Amortisation - 1,770 - 1,770
Balance at 31 December 2022 298 3,451 - 3,748
Carrying amount
31 December 2023 753 21,099 4,057,388 4,079,240
31 December 2022 753 22,869 4,057,388 4,081,010
a Impairment test
There was no impairment loss on Goodwill during the year.
i. Impairment testing for CGUs (Cash Generating Unit) containing Goodwill
Aircraft Handling (Foreign and Domestic) and Cargo Handling

The recoverable amount of these CGUs( Cash Generating Unit) was based on its value in use, determined by the
discounted future cash flows to be generated from the continue use of the CGUs. The carrying amount of the CGUs
(N4.05 billion) was determined to be lower than the recoverable amount of N5.9 billion. Hence no impairment loss
was recognised during the period (2022:Nil).

The key assumptions used in the estimation of value in use were as follows;

2023 2022
% %
Discounted Rate 15 15
Terminal Value Growth Rate 14 14
Budgeted EBITDA Growth Rate (average of next five year) 2 2
The discount rate was a pre-tax measure based on the rate of 5-year government bonds issued by the government in
the relevant market and in the same currency as the cashflows.

Five years of cash flows were included in the discounted cash flow model. A long term growth rate into perpetuity has
been determined as the lower of the nominal gross domestic product rate and the long term compound annual EBITDA
growth rate estimated by the management.

Budgeted EBITDA was based on the expectations of future outcomes taking into account past experience, adjusted
for anticipated revenue growth. The revenue growth was projected taking into account the average growth levels
experienced over the past five years.

Following an annual test of impairment carried at the reporting date, the estimated recoverable amount exceeded its
carrying amount by approximately N1.9 billion.
16 INVENTORIES
2023 2022
N'000 N'000
Spares 885,660 597,068

Oil and Lubricants 30,255 18,586
915,915 615,653
During the year 2023, N2,599,008,946(2022: N983,673,517.21) was recognised as an expense for inventories
carried at net realisable value. This is recognised in cost of sales.
None of the company's inventories were pledged as collateral for borrowings.
The company's inventories were also not written down during the period (2022 : Nil).


17 TRADE AND OTHER RECEIVABLES
2023 2022
N'000 N'000
Trade Receivables 4,758,264 3,124,454

Less: Allowance for Impairment (Note 17(a)(i)) (1,089,605) (988,565)
3,668,658 2,135,888
Due from related parties (Note 22.2) 3,541,376 628,278

Advance to Suppliers (Note 17(b)) 1,604,207 1,197,861
Other Receivables (Note 17(c)) 525,499 101,327
Staff Loan Receivable (Note 17(d)) 203,343 103,099
Prepayments (Note 17(e)) 173,213 51,331
9,716,297 4,217,783
The company determines its recoverability of trade receivable after considering any changes in the credit quality of the
trade receivables from the date credit is granted up to the end of the reporting period.
The following table details the risk profile of trade receivables based on the Company’s provision matrix. As the
Company’s historical credit loss experience does not show significantly different loss patterns for different customer
segments, the provision for loss allowance based on past due status is not further distinguished between the company’s
different customer base.
Not Past Due <30 31 to 90 >90 Total

N'000 N'000 N'000 N'000 N'000
Estimated total carrying amount at default 1,115,072 1,237,439 795,385 1,610,367 4,758,264
Expected credit loss rate (%) 3.00 5.00 8.00 85.00
Lifetime expected credit loss 33,452 61,872 63,631 1,368,812 1,528,059
a) Allowance for impairment on trade receivables

2023 2022
N'000 N'000
Balance at the beginning of the period 1,144,565 1,450,688

Bad Debts Written-Off (116,684) (517,018)
Adjustment for reversals - 82,822
Allowance for Impairment for the period 166,724 128,073
Balance at the end of the period 1,194,605 1,144,565

i.) Allowance for impairment is further analysed below

2023 2022
N'000 N'000
Trade Receivables 1,089,605 988,565

Advance to Suppliers 105,000 105,000
Other Receivables - 51,000
1,194,605 1,144,565
b) Advance to Suppliers
2023 2022
N'000 N'000
Cash with Suppliers 1,709,207 1,302,861

Allowance for impairment of advance to suppliers (Note 17(a)(i)) (105,000) (105,000)
1,604,207 1,197,861
c) Other Receivables
2023 2022
N'000 N'000
Staff Advance for Expenses 6,879 35,485

Withholding Tax Receivables 518,620 65,842
Loan to ABX World - 51,000
Allowance for impairment of loan to ABX World (Note 17(a)(i)) - (51,000)
525,499 101,327
d) Staff Loan Receivable

Staff Loan Receivable are non-interest bearing. They are repayable within 12month.
e) Prepayments
Prepayments relate to rent prepaid on its offices complex all over the country and insurance prepaid on its Property,
Plants and Equipment.

18 CASH AND CASH EQUIVALENTS
2023 2022
N'000 N'000
Cash Balance 7,536 5,430

Bank Balances 942,952 4,009,718
2,465,108 4,383,740
Short-term investment are made for varying periods of between one day and three months, depending on the immediate
cash requirements of the Company, and earn interest at the respective short-term deposit rates.
For the purpose of the statement of cash flows, cash and cash equivalents comprise the following:

18.1 CASH AND BANK BALANCES
2023 2022
N'000 N'000
Cash Balance 7,536 5,430

Bank Balances 942,952 4,009,718
950,488 4,015,148
18.2 SHORT TERM INVESTMENT
2023 2022
N'000 N'000

1,514,620 368,593
19 TRADE AND OTHER PAYABLES
2023 2022
N'000 N'000
Trade Payables 1,207,095 1,250,720

Customers Deposits 1,010,501 624,856
Due to Related Parties (Note 23.2) - -
Provision for Concession Fee 1,021,320 684,434
Other Payables 96,556 104,893
Accruals (Note 19.2) 183,153 133,472
Statutory Obligations Payables (Note 19.3) 604,559 752,552
4,123,184 3,550,928

19.1 Terms and conditions of the above financial liabilities:

• Trade payables are non-interest bearing and are normally settled within 12months.
• Other payables are non-interest bearing and have an average term of 6months.
19.2 Accruals
2023 2022
N'000 N'000
Stamp Duties 17,720 14,520

Others 165,433 118,952
183,153 133,472
19.3 Statutory Obligation Payables – tax and social security payments
2023 2022
N'000 N'000
Withholding Tax Payables 43,995 13,281

Value Added Tax Payable 330,996 355,320
ITF Contribution Payable 1,119 8,906
NSITF Contribution Payable 4,286 25,367
Pension Payable 196,306 170,317
PAYE Payable 23,110 15,251
Cooperative and Thrift Dues 3,907 149,561
Union Dues Payable 840 811
NHF Payable 1 1
Payroll Clearance - 147
Leave Allowance Accruals - 13,592
604,559 752,552
20 BORROWINGS
2023 2022
N'000 N'000
United Bank for Africa Plc. 54,861 135,450

Bank of Industry 3,441,667 3,500,000
3,496,527 135,450
Classification of Borrowings:
Current 124,403 204,993
Non-Current 3,372,124 3,430,457
3,496,527 3,635,450

United Bank for Africa Plc.-Term Loan

This is a facility of N319,041,494.72(€768,608) which was sourced to purchase a ground handling equipment. The
facility is for a tenor of 4 years effective 2020. The interest rate on the facility is 20% effective from November 2022.
The facility is secured against fixed and floating assets of the company and personal guarantee of the Chairman.
Bank of Industry Loan

This is a facility of N3,500,000,000 which was sourced for the procurement of equipment and machinery for aviation
ground handing services. It is for six(6) years (inclusive of a 12 (twelve) months moratorium on principal repayment
commencing from the date of first disbursement. The interest rate is 9% per annum "all in" (subject to review)
payable monthly in arrears commencing from the date of first disbursement.
21 Reconciliation of movements of Liabilities to cash flows arising from Financing Activities

2023 2022
N'000 N'000
Opening Balance 3,635,450 215,866

Changes from Financing Cash flows
Additional Borrowing - 3,500,000
Repayment of Borrowings (138,923) (80,415)
Other Changes
Interest Expense 367,214 73,133
Interest Paid (367,214) (73,133)
- -
Closing amount as at ending 3,496,527 3,635,450
22 RELATED PARTY
The company entered into various transaction with related parties in the ordinary course of business.
Details of the transactions between the Company and other related parties are disclosed below:
22.1 Identity of Related Party

Port and Cargo Handling Services Company Limited
Sifax Shipping Company Limited
Mac Folly Hospitality Limited

Port and Cargo Handling Services Company Limited
Ports and Cargo Handling Services is the port operations arm of SIFAX Group. The company entered into various
transactions with the related party, ranging from support services to expenses incurred by the related company. The
outstanding amount is from the various transactions entered with the related party.
Sifax Shipping Company Limited

SIFAX Shipping Company Limited was founded to provide a variety of complementary, quality shipping services. The
company’s bouquet of services includes Ship Agency, Ship Husbandry, Protective Agency/ Owners Representation,
Crew Change and Group age. The amount outstanding represent cost and expenses incurred by the company on behalf
of Skyway Aviation Handling Company Plc.


Mac Folly Hospitality Limited

Mac Folly Hospitality Limited prides itself as a leader in the hospitality industry in Nigeria. The amount outstanding
represent cost and expenses incurred by the company on behalf of Skyway Aviation Handling Company Plc.

22.2 Outstanding Balances

2023 2022
N'000 N'000
Due to related entities

Port and Cargo Handling Services Company Limited - -
Sifax Shipping Company Limited - -
Mac Folly Limited - -
- -
Due from related entities
Sifax Shipping Company Limited 3,541,376 628,278
3,541,376 628,278
22.3 Terms and conditions of transactions with related parties

zz No technical management fees were paid by Skyway Aviation Handling Company Plc. to its parent company
during the year.
zz The sales to and purchases from related parties are made at terms equivalent to those that prevail in arm’s length
transactions. Outstanding balances at the year-end are unsecured and interest free.
For the period ended 31 December 2023, the Company has not recorded any impairment of receivables to amounts
owed by related parties (2022: Nil). This assessment is undertaken each financial year by examining the financial
position of the related party and the market in which the related party operates.
22.4 Key Management Personnel

Key management personnel are those who have authority and responsibility of planning directing and controlling
activities in the company either directly or indirectly. These include:
1. Executive Director
2. Non-Executive Director
3. Management team that implements board strategy by board delegated authority.
Loans to Director
The company did not lend money to any of its directors during the year under review
Payment on behalf of Key Management Personnel

There were no payment on behalf of key management personnel during the year under review.
Key Management Personnel Compensation

Key management personnel compensation for the year comprise:


2023 2022
Number Number
Directors 11 11
Aggregate number of persons senior management 16 16
27 27

2023 2022
N'000 N'000
Salaries and Other Short Term Benefits 151,620 151,620

Pension and Other Post Employment Benefits 255,528 255,528
407,148 407,148
22 SHARE CAPITAL

2023 2022
Unit Unit
Issued and fully paid ordinary shares

Ordinary shares of 50k each 1,353,580,000 1,353,580,000
(2022: Ordinary shares of 50k each)
2023 2022
N'000 N'000
Issued and fully paid

Balance at the beginning and end of the year 676,790 676,790
24 Employee Benefits Obligation
a) Defined Contribution Plan

The company operates a defined contribution pension scheme in line with the provisions of the Pension Reform Act,
2004, with contributions based on the employees’ emoluments in the ratio 8% by the employee and 10% by the
employer.
2023 2022
N'000 N'000
Balance at beginning 170,317 151,095

Charge to the Statement of profit or loss 123,678 123,678
Payments during the year (102,140) (102,140)
Balance at the end 196,306 170,317


The company’s contributions to this scheme is The valuations of the present value of the defined
charged to the statement of profit or loss account benefit plan were carried out at 31 December 2023 by
in the period to which they relate. Contributions to Seyi Katola & Co (FRC/2013/ICAN/00000003609).
the scheme are managed by Stanbic IBTC pension The present value of the plan and the related current
manager, and other appointed pension managers service cost and past service cost, were measured
on behalf of the beneficiary staff in line with the using the Projected Unit Credit (PUC) Method.
provisions of the Pension Reform Act.
In calculating the liabilities, the method:

Consequently, the company has no legal or
constructive obligations to pay further contributions i. Recognises the company service rendered by each
if the funds do not hold sufficient assets to meet the member of staff at the review date.
related obligations to employees.
ii.
Anticipates that salaries will increase between
As at 31 December 2023, contributions of N196.306 the review date and the eventual exit date of the
million (2022:N 170.317 Million) due in respect of employee via withdrawal, death or retirement and
the 2023 reporting period had not been paid on to then;
the plans. The amounts were paid subsequent to the
end of the reporting period. iii. D
iscounts the expected benefit payment to the
review date.
b) Defined Benefit Plan
The Company also has a retirement benefits policy i) Valuation Assumptions
for all its full-time employees who have served the The valuation assumptions fall under two broad
company for a minimum of 1 year. The company has categories:
a post-retirement programme for any employee who
zz inancial Assumptions
has attained the terminal age limit of 60 years and
35 years in service whichever is earlier. zz Demographic Assumptions
a. Financial Assumptions
The principal financial assumptions used for the purposes of the actuarial valuations were as follows:

2023 2022
% %
Long Term Average Discount Rate (pa) 15 15

Average rate(s) of salary increase (pa) 16 16
Average Inflation rate (pa) 14 14
Discount Rate
In order to measure the liability, the projected benefit must be discounted to a net present value as at the current
statement of financial position date, using an interest assumption (called the discount rate).
IFRS through IAS 19 requires that the discount rate be determined on the company’s statement of financial position
date by reference to market yields on high quality corporate bonds (except where there is no deep market in such
bonds, in which case the discount rate should be based on market yields on Government bonds).
The discount rate should reflect the duration of the liabilities of the benefit programme.

The weighted average liability duration for the plan is 10 years. The average weighted duration of the closest Nigerian
Government bond as at 31st December, 2023 was 10 years with a gross redemption yield of 14.23%.
We have prudently adpoted 15.5% discount rate for this valuation. This is 0.77% above gross redemption yield of the
Nigerian Government Bond to account for the company's unsystematic risk.
Pay Increase
We have assumed salaries will on the average increase at a rate of 2% above inflation and adopted a long-term salary
increase of 16.0% p.a for future years after 2023
b. Demographic Assumptions
Mortality in Service
The rates of mortality assumed for employees are the rates published in the A67/70 Ultimate Tables, published jointly
by the Institute and Faculty of Actuaries in the UK.
Number of deaths
Sample in year of age
age out of 10,000 lives
25 7
30 7
35 9
40 14
45 26
Withdrawal from Service
Age Band 2023 Rate 2022 Rate
Less than or equal to 30 12.0% 12.0%

31 – 35 8.5% 8.5%
36 – 44 5.0% 5.0%
45 – 50 3.5% 3.5%
51 – 55 2.5% 2.5%
ii) The amount included in the statement of financial position as a result of the entity's obligation in respect of its defined
benefit plans is as follows:

2023 2022
N'000 N'000
Present value and funded Status of the defined benefit plan 3,023,549 2,240,086
Reconciliation of change in the present value of the defined benefit plan are as follows:

2023 2022
N'000 N'000
Balance at beginning of the year 2,240,086 1,669,197

Current Service Cost 136,350 119,419
Interest Cost 347,213 241,412
Actuarial Losses - Change in Assumption 215,798 -
Actuarial (Gains)/Losses - Experience Adjustment 234,928 329,423
Actuarial Losses/(Gains) - Settlement 75,909 11,557
Benefit Payment (226,736) (130,921)
Balance at end of the year 3,023,549 2,240,086
Amounts recognised in the Statement of Profit or Loss in respect of these defined benefit plans are as follows:

2023 2022
N'000 N'000
Current service cost (Employee cost) 136,350 119,419

Interest on obligation (Finance cost) 347,213 241,412
483,563 360,831
Amounts recognised in Other Comprehensive Income are as follows:

2023 2022
N'000 N'000
Actuarial (gain)/loss on defined benefit plan:

- Change in Assumption 215,798 -
- Change in Experience adjustment 234,928 329,423
450,726 329,423
Actuarial (gain)/loss on Settlement during the year 75,909 11,557
526,635 340,979

2023 2022
N'000 N'000
Net(Liability)/Asset recognized in the Statement of Financial Position

Net (Liability)/Asset recognised in the
Statement of Financial Position - Opening 2,240,086 1,669,197
Net Periodic Benefit Cost recognised in the Profit or loss 483,563 360,831
Benefit paid by employer during the year (226,736) (130,921)
Amount recognised in Other Comprehensive income 526,635 340,979
3,023,551 2,240,086

iii) Sensitivity Analysis on Accrued Liability

Accrued liabilities
2023 2022
N'000 N'000
Sensitivity Base Parameters 3,023,551 2,240,086

Discount rate +1% 1,950,761 1,950,761
-1% 2,500,048 2,500,048
Salary Increase +1% 2,582,745 2,582,745
-1% 2,006,237 2,006,237
25 RETAINED EARNINGS

2023 2022
N'000 N'000
As at the beginning of the year 4,665,090 4,623,746

Impact of correction of errors (Note 38) - (44,650)
Balance after adjustment of error 4,665,090 4,579,096
Dividend Paid (Note 33) (223,342) (223,342)
As at the end of the year 6,396,426 4,665,090
26 REVALUATION RESERVE

2023 2022
N'000 N'000
As at the beginning and ending of the year 9,088,895 9,088,895

The revaluation reserve relates to the revaluation of Property, Plant and Equipment (Refer to Note 13.1).
27 ACTUARIAL VALUATION RESERVE

2023 2022
N'000 N'000
As at beginning of the year 508,808 353,521

Other Comprehensive Income 206,294 155,287
As at the end of the year 715,102 508,808
Actuarial valuation reserve represents the actuarial gain or loss on remeasurement of defined benefits obligation.

28 FOREIGN EXCHANGE TRANSLATION RESERVE

2023 2022
N'000 N'000
As at beginning of the year - -

Other Comprehensive Income 1,304,796 -
As at the end of the year 1,304,796 -
This represents unrealized gain from foreign exchange translation as at the reporting date.
29 SHARE PREMIUM
2023 2022
N'000 N'000
As at beginning of the year 4,784,010 4,784,010

Issued during the year - -
This represent the amounts paid by shareholders above the nominal price of the shares
30 EARNINGS PER SHARE

Basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity
holders by the weighted average number of ordinary shares outstanding during the period.
2023 2022
N'000 N'000
Net profit attributable to ordinary equity holders 1,954,678 309,336
Number Number
Weighted average number of ordinary shares 1,353,580,000 1,353,580,000

Basic earning per Ordinary Shares (Kobo) 144.41 22.85
Diluted earnings per ordinary shares (Kobo) 144.41 22.85
31 DEFERRED INCOME

2023 2022
N'000 N'000
Rental Income 59,496 43,767
Amount received during the period are categorized as follows:

Current portion 46,014 35,014
Non-Current portion 13,483 8,753
59,496 43,767

32 INCOME TAX LIABILITY

The major components of income tax expense for the period are:
2023 2022
N'000 N'000
As per the Statement of Profit or Loss:

Current Income Tax Charge:
Income tax 468,619 224,986
Tertiary Education Tax 140,586 56,247
Police Trust Fund Levy 132 23
NASENI 6,576 1,174
Total Current Tax Liability 615,912 282,430
Deferred Tax:
Origination and reversal of temporary differences (Note 32) 59,696 (122,183)
Total Deferred Tax 59,696 (122,183)
Income Tax Expense 675,609 160,247
As per other comprehensive Income:

Origination and reversal of temporary differences (Note 32) (206,294) (155,287)
As Per Statement of Financial Position:
As at 1 January, 210,387 564,502

Current income tax charge for the period 615,912 282,430
826,300 846,932
Less: Payment during the period
Withholding Tax Credit Notes - (446,380)
Cash Paid (243,509) (190,165)
As at 31 December 582,791 210,387
Reconciliation of Income Tax Expense

Profit Before Income Taxes 2,630,287 469,583
Statutory Company Income Tax Rate 30% 30%

Expected income tax expense calculated at 30% (2022: 30%) 789,086 169,545
Effects of:
Tax Credit (937,239) (520,341)
Taxable and Non Taxable items 651,777 610,967
503,625 260,170
Tertiary Education Tax Expense at 3% (2022: 2.5%) of assessable profit 140,586 65,043
Total Current Income Tax Expense 644,210 325,213
Effective Tax Rate 24% 69%
The tax rate used for 2023 and 2022 reconciliation above is the company income tax rate of 30% based on the
provisions of the Companies Income Tax Act, CAP C21, LFN 2020, as amended.
The rate of 3% for tertiary education tax is based on the provisions of the Education Tax Act, CAP E4, LFN 2020 (as
amended).

33 DEFERRED TAX LIABILITIES/(ASSETS)
As Per Statement of Financial Position:

2023 2022
N'000 N'000
Deferred Tax Relates to the following:

Property, Plant and Equipment 367,371 195,828
Investment property 62,933 58,702
Impairment Allowance (358,382) (343,370)
Provision for Concession (306,396) (205,330)
Employee Benefit Liability (839,044) (632,750)
(1,073,517) (926,919)
As Per Profit or Loss:

2023 2022
N'000 N'000
Movement in deferred tax charge:

Property, plant and equipment 171,543 (175,874)
Investment property 4,231 3,360
Impairment Allowance (15,012) 91,837
Provision for Concession (101,066) (41,506)
59,696 (122,183)
As Per Other Comprehensive Income:

2023 2022
N'000 N'000

Employee Benefit Liability (206,294) (155,287)
(206,294) (155,287)
Summarized Reconciliation of Total Deferred Tax Assets (Net):

2023 2022
N'000 N'000

As at 1 January 926,918 649,449
Relating to origination and reversal of temporary differences 146,598 277,470
As at 31 December 1,073,516 926,918
Deferred tax assets and liabilities relates to the unutilised capital allowances, Employee benefit and receivables/
intangible assets to the extent that the realisation of the related tax benefits through future taxable profits is probable.
All deferred tax assets/liabilities are deemed to be recoverable after 12months.

Deferred tax on revaluation surplus is based on capital gains tax of 10%.

34 DIVIDEND PAID AND PROPOSED

Declared and paid during the year:
2023 2022
N'000 N'000
Dividends on ordinary shares 223,341 223,341

Proposed for approval at the annual general meeting (not recognised as a
liability as at 31 December):
Dividends on ordinary shares for 2023: XX (2022: 16.5K) 223,341 223,341
Dividend Per Share (Kobo) 16.50 16.50

35 CONTINGENT LIABILITIES, GUARANTEES AND FINANCIAL COMMITMENTS
35.1 Contingent Liabilities

The company in the ordinary course of business is presently in 4 cases as a defendant (2021: 4) and 4 case as a
plaintiff (2021: 3). The Directors of the company having sought advice of professional legal counsel are of the opinion
that none of the aforementioned cases is likely to have material adverse effect on the Company and not aware of any
other pending and or threatened claims or litigation claim which may be material to the financial statements. The
following are the current legal suits pending in the law court:
1. Skyway Aviation Handling Company Plc. VS Afrijet Airlines (FHC/IKJ/CS/777/10)

2. Skyway Aviation Handling Company Plc. VS Bellview Airlines(Suit No: FHC/IKJ/CS/40/2011
3. Skyway Aviation Handling Company Plc. VS AZMAN AIR
4. Comissioner of Police VS Teniola Kehinde and Others
5. Mitsumi VS Skyway Aviation Handling Company Plc.
6. Skyway Aviation Handling Company Plc. VS Medview Airline Plc.
7. Woeman Nigeria Ltd VS Skyway Aviation Handling Company Plc.
8. AFFLON VS Skyway Aviation Handling Company Plc.

35.2 Guarantees
The Company did not charge any of its assets to secure liabilities of third parties (2022-Nil).
35.3 Financial Commitments

As at the reporting date, there were no financial commitments made by the company (2022-Nil).
35.4 Operating Lease Commitments

The Company leases various cargo, warehouse and station offices under non-cancellable operating lease agreements.
The lease terms are within 1 year and the majority of lease agreements are renewable at the end of the lease period
at the prevailing market rate.
36. EVENTS AFTER THE REPORTING PERIOD
a. A dividend of 30 kobo was proposed by the directors for approval at the Annual General Meeting . This will
result in a dividend payment of NGN406,074,000 once it is approved by the shareholders at the Annual General
Meeting.
b. The Managing Director - Mr. Basil Agboarumi retired with effect from 31 January 2024 in line with the Corporate
Governance policy of the Company and Mrs. Adenike Aboderin was appointed with effect from 1 February 2024.
37. APPROVAL OF THE FINANCIAL STATEMENTS

The financial statements were approved by the board of directors and authorised for issue on 14 March, 2024

VALUE ADDED STATEMENT - (NON-IFRS)

2023 2022
N'000 % N'000 %
Revenue 16,546,685 11,125,330

Other Income 293,912 475,413
16,840,598 11,600,742
Bought in materials and services (Local and Imported) (6,363,384) (5,023,990)

VALUE ADDED 10,477,214 100 6,576,752 100
APPLIED AS FOLLOWS:
1. TO PAY EMPLOYEES:
Salaries, Wages and Other Benefits 4,755,036 45 3,576,532 54
2. TO PAY PROVIDERS OF FUNDS:

Finance Cost 714,428 6 314,546 5
Dividend Paid 223,342 223,342
3. TO PAY GOVERNMENT:
Income Taxes 615,912 6 282,430 4
4. TO PROVIDE FOR REPLACEMENT OF

ASSETS AND FUTURE GROWTH:
Depreciation and Amortisation 2,154,122 21 1,992,747 30
Deferred Tax Expense/(Charge) 59,696 1 (122,183) (2)
Profit for the year 1,954,678 19 309,336 5
10,477,214 98 6,576,752 97

Value Added represents the additional wealth created through the effort of the company and its employees. The Statement
shows the allocation of that wealth to employees, providers of fund, shareholders, government and the amount retained
for the future creation of wealth.
FIVE YEAR FINANCIAL SUMMARY - (NON-IFRS)

2023 2022 2021 2020 2019

N'000 N'000 N'000 N'000 N'000
ASSETS/LIABILITIES
Property, Plant and Equipment 15,082,194 14,258,905 13,621,684 13,251,459 14,216,328
Intangible Assets 4,079,240 4,081,010 4,066,762 4,065,906 4,058,351
Investment Property 733,627 734,531 755,858 383,621 291,748
Deferred Tax Assets 1,073,516 926,918 649,449 523,961 238,004
Current Assets 13,097,320 9,217,176 5,513,837 5,401,240 4,395,138
Current Liabilities (4,876,392) (4,001,321) (3,431,197) (2,752,486) (3,074,072)
Non-current Liabilities (6,409,158) (5,679,297) (1,835,102) (1,674,464) (1,100,457)
NET ASSETS 22,780,348 19,537,921 19,341,291 19,199,237 19,025,040
EQUITY
Ordinary Share Capital 676,790 676,790 676,790 676,790 676,790
Share Premium 4,784,010 4,784,010 4,784,010 4,784,010 4,784,010
Retained Earnings 6,396,426 4,665,090 4,623,746 4,565,058 4,306,022
Revaluation Reserve 9,088,895 9,088,895 9,088,895 9,088,895 9,088,895
Actuarial Valuation Reserve 529,431 323,137 167,850 84,484 169,323
Foreign Exchange Translation Reserve 1,304,796 - - - -
SHAREHOLDERS' FUND 22,780,348 19,537,921 19,341,291 19,199,237 19,025,040
STATEMENT OF PROFIT OR LOSS

Revenue 16,546,685 11,125,330 8,657,635 6,981,593 7,665,990
Gross Profit 8,195,984 4,366,047 3,806,957 3,028,693 3,346,657
Profit Before Income Tax Expense 2,630,287 469,583 565,148 566,665 360,930
Profit After Income Tax Expense 1,954,678 309,336 282,030 482,377 261,943
Per Share Data (50 kobo)

Earnings- Basic 1.44 0.23 0.21 0.36 0.19
Earnings- Diluted 1.44 0.23 0.21 0.36 0.19
Net Assets 16.83 14.43 14.29 14.18 14.06
Note:
1. Earnings per share are based on profit after income tax expense and the number of issued and fully paid ordinary
shares at the end of each financial year.
2. Net assets per share are based on net assets and the number of issued and fully paid ordinary shares at the end of
each financial year.
E-DIVIDEND MANDATE ACTIVATION FORM
RC 813022
SHAREHOLDER'S INFORMATION UPDATE
RC 813022
PROXY FORM
[PLEASE COMPLETE THIS FORM IN CAPITAL LETTERS]
The 14th Annual General Meeting (AGM) of Skyway Aviation Handling Company Plc will be held electronically on Thursday, 13th June 2024 at 11.00am
I/We being a member(s) of SKYWAY AVIATION HANDLING
COMPANY PLC (SAHCO), hereby appoint

or failing him the Chairman of the meeting as my/our proxy to vote for me/us and on my/our behalf at the Annual General Meeting to be held on Friday, 23rd June,
2023 and at any adjournment thereof.
Resolutions Notes
Ordinary Business A. Individuals designated for appointment as

Proxy Tick (X) against the name of the individual you are appointing Proxy
VOTE IN VOTE 1. In order to attend and vote at the 13th Annual General
FAVOUR AGAINST ABSTAIN
Meeting of SAHCO PLC, a duly completed and signed
1. To receive the Audited Financial Statements for the year ended 31st December, copy of this Proxy Form and Admission Form must reach
2023, together with the Reports of the Directors, Auditors and Audit Committee the Company Secretary, Ms. Jesuyemisi Odeyemi (as in
thereon. the Notice) by e-mail at [email protected] or
2. To declare a dividend. the physical copy returned to the registered office of the
company at SAHCO Complex, Cargo Terminal, Murtala
3. To re-elect the following Directors retiring by rotation Muhammed International Airport, Ikeja, Lagos Nigeria,
a. Mrs Laila St. Matthew-Daniels - Independent Non-Executive Director
not less than 48 hours before the meeting.
b. Dr Bukola Bello-Jaiyesinmi - Independent Non-Executive Director
c. Barr Kayode Filani - Non-Executive Director
2.
In the case of Joint Shareholders, any of them
4. To elect/approve the appointment of the following Directors: may complete the form, but the names of all Joint
a. Mrs Adenike Aboderin - Managing Director
b. Mr Abiodun Adegbesan - Executive Director
Shareholders must be stated.
5. To disclose the remuneration of the Managers of the Company 3. If the Shareholder is a Corporation, this form must be
executed under its Common Seal or under the hand of
6. To authorize the Directors to fix the remuneration of the External Auditors
some of its officers or an attorney duly authorized.
7. To elect members of the Statutory Audit Committee.
4. In accordance with the provisions of the Stamp Duties
Act, Cap. S8, Laws of the Federation of Nigeria, 2004,
Special Business by Ordinary Resolutions this Proxy Form must bear appropriate stamp duty. The
8. To approve the remuneration of Directors. cost of which will be borne by the company.
9. To consider and if thought fit, pass the following resolution as an ordinary
resolution of the Company:
5. The Proxy must produce the duly completed Admission

‘That the general mandate given to the Company to enter into recurrent
Card sent with this Proxy Form to gain entrance to the
transactions of a revenue or trading nature with related parties or interested meeting.
persons for the Company’s day-to-day operations, be and is hereby renewed.’
Voting by Interested Persons:

In line with the provisions of Rule 20.8 (2)(h) Rules Governing Related Party
Transaction of Nigerian Exchange Limited, interested persons have undertaken to
ensure that their proxies, representatives, or associates shall abstain from voting
on resolution 9 above.
Please indicate with an “X” in the appropriate column how you wish your votes to be cast on the resolutions set out above. Unless otherwise instructed, the Proxy will vote or
abstain from voting at his/her/its discretion.
D D M M
Dated this day of 2024
Name of Shareholder
Shareholder’s Signature
Shareholder A/C no:

Number of Shares:
ADMISSION
Please admit the duly appointed Proxy to the 13th Annual General Meeting of Skyway Aviation No. of Shares held:
Handling Company Plc. to be held virtually on Friday 23rd June 2023.
Signature of person attending
Name of Proxy attending:
PHOTO GALLERY
SAHCO Wins Aviacargo Award Cool Dollies
SAHCO Cold Room Engineering and maintenance
Cargo Services
NOTES

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ANNUAL REPORT

Skyway Aviation Handling Company Plc

Other National Disclosures

OUR MISSION VISION VALUE

Company’s Tax Identification

Barrister (Dr.) Taiwo Afolabi Chairman

Mrs Adenike Aboderin Managing Director/ CEO

CORPORATE INFORMATION Cont’d

Registered Office Bankers

Justification Law Firm

NOTICE OF ANNUAL GENERAL MEETING (AGM)

Special Business by Ordinary Resolutions

By Order of the Board.

Notice of Annual General Meeting (AGM) Cont’d

It’s my pleasure to present a

Barrister (Dr.) Taiwo Afolabi

Two, the United States, comprising a quarter of the world

CHAIRMAN’S SPEECH Cont’d

We won’t relent in investing in state-of-the-art equipment to help

CHAIRMAN’S SPEECH Cont’d

financial year, our company’s revenue stood at N16.5

Thank you for joining us today at the

Mr. Basil Agboarumi

MANAGING DIRECTOR/CEO’s SPEECH

AVIATION INDUSTRY The agriculture sector grew by 1.50%, an improvement

MANAGING DIRECTOR/CEO’S SPEECH Cont’d

we have also gone green by acquiring more environmentally/eco-

MAJOR INITIATIVES INVESTMENT IN ULTRA-MODERN EQUIPMENT

Our Total assets for 2023 is N34,065,897,000.00 Conclusion:

zz Rano Air additional station (Abuja)

zz Green Africa extended its routes (Ibadan and Sokoto)

zz NG Eagle domestic operations increased its frequency

zz Air Peace extended its routes

zz Uganda Airlines’ International operations

zz Bristow contract renewed

zz United Nigeria contract renewed

zz Overland contract renewal

2023 2022 Increase / (Decrease)

Statement Of Profit Or Loss And Other Comprehensive Income Items:

Per Share Data

FINANCIAL HIGHLIGHTS Cont’d

STATEMENT OF FINANCIAL POSITION ITEMS

STATEMENT OF PROFIT OR LOSS AND OTHER

The Board is made up of a group of

Barrister (Dr.) Taiwo Afolabi

Mr. Basil Agboarumi1 Mrs Adenike Aboderin2

OUR DIRECTORS Cont’d

Mr. Babatunde Afolabi Mr. Olaniyi Adigun3 Mrs. Boma Ukwunna

Mr. Herbert Odika4 Mr Abiodun Adegbesan5 Jesuyemisi Odeyemi

REPORT OF THE DIRECTORS

3 RESULT FOR THE YEAR

31 December 2023 31 December 2022

Revenue 16,546,685 11,125,330

Profit Before Income Tax Expenses 2,630,287 469,583

Earnings Per Share (Kobo) 144.41 22.85

4 OPINION OF THE DIRECTORS

REPORT OF THE DIRECTORS Cont’d

5 DIRECTORS AND DIRECTORS’ INTEREST

Number of shares held (Unit)

Barr. Dr. Taiwo Afolabi 379,041,989 443,331,091 (SIFAX Shipping Ltd)

Resulting from the above, the directors have a Jesuyemisi Odeyemi

zz Review any potential impact specifically related to Composition

zz At any time been a party to a scheme of arrangement