Though 2024 was a better year for ABC Transport Plc, negative retained earnings mean it wont be paying a dividend.  

About the firm

ABC Transport Plc was incorporated as a Private Limited Company on April 5, 1993, and commenced operations that same year. The firm  was converted to a Public Limited Liability Company on November 21, 2005.

ABC was listed on the Nigerian Stock Exchange on December 20, 2006.

At the Annual General Meeting of 12th August, 2011, shareholders approved change from Associated Bus Company Plc to ABC Transport Plc.

The principal activities of the Group include road transportation and logistics.

It provides both long and short haul bus services as well as bus charter services; consolidated cargo and haulage services within Nigeria and the West African sub-region.

It is also engaged in import/sale of vehicle spares, assembly of heavy duty trucks and the hospitality business.

FY 2024 

There was topline and bottom line growth, during the period. Revenue grew by 70.6% from N7.3 billion in 2023 to N12.5 billion in 2024.

2024 marked a return to profit. It made a profit after tax of N669 million. In FY 203, it recorded a N540 million loss.

Earnings per share was 27.9 kobo in FY 2024. For FY 2023, it recorded a loss per share of 22.5 kobo in FY 2023. 

Q3 and Q4 2024 were particularly strong quarters. From a profit perspective. The company recorded N317 million and N490 million respectively. 

Margins are razor thin

The transport business is a crazy one. Its a sector that’s guaranteed to make you run mad or have high blood pressure. 

You have bad roads, insecurity, formal and informal agents imposing unofficial levies. 

Net profit margin in FY 2024 was 5.3%. For every N100 in revenue earned, N5.3 was profit. 

In FY 2023, the company made a net loss margin of 7.3%. For every N100 it earned that year, it made a loss of N7.3 

What’s in it for shareholders? 

The company will not be paying a dividend to shareholders, due to its negative retained earnings. Think of it as an empty purse). Circled in black below.

For FY 2023, it paid a dividend of 2.5 kobo (circled in blue below).

Operational split 

Operations can be split into 

• Coach passenger operations – long distance service using luxury buses.

• Sprinter passenger operations – long distance service using midi buses.

• Shuttle passenger service – relatively shorter distance service using mini buses.

• Haulage services – dedicated long distance haulage servicing manufacturers.

• Cargo services – consolidated cargo services including mails and light.

• Hospitality CTI – budget accommodation targeted at sleep-over passengers.

• Corporate and others – head office revenue and others.

• Trading – vehicle assembly, sale of spares and speed governors by Transit Support Services Ltd.

Cargo, trading and haulage accounted for 73% of revenue and 79% of profit.