Bloomberg News

Airline Services Nigeria Rises to 16-Month High on Profit Surge

November 13, 2012

Airline Services and Logistics Plc, Nigeria’s biggest airline catering company, climbed to the highest in almost 16 months after saying nine-month profit more than tripled.

The stock gained 4.8 percent to 2.62 naira by 12:51 in Lagos, Nigeria’s commercial capital, the highest level since July 18, 2011. Almost 423,000 shares traded, more than four times the three-month daily average, according to data compiled by Bloomberg.

Profit for the nine months through September rose to 455.9 million naira from 143.26 million naira a year earlier, the Lagos-based company said on Nov. 9. Revenue rose to 2.96 billion naira from 2.68 billion naira, it said.

The result is “fantastic,” David Adonri, chief executive officer of Lambeth Trust and Investment Co. Ltd, said by phone from Lagos today. “The company is minting money and that is enough to attract investors into it,” he said.

Earnings per share were 72 kobo, the company said. The company might make year-end EPS of 1 naira, according to Adonri, “which means that right now, the stock is undervalued,” he said.

Airline Services shares have risen 21 percent this year, compared with a 27 percent increase in the Nigerian Stock Exchange All-Share Index.

To contact the reporter on this story: Vincent Nwanma in Lagos at vnwanma@bloomberg.net

To contact the editor responsible for this story: Dulue Mbachu at dmbachu@bloomberg.net


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