Swissport shares plunge to six-year low

SWISSPORT share price have dropped to the lowest in six years and stagnated at 1,700/- since the airport ground handler firm reported pre-tax profit decline by 37 per cent for last year, which is third year in a row.

The firm announced its 2018 results late last month and its share price started to plunge three days before the results were out and settled at 1,700/- , which was lowest amount since January 2013.

Swissport pre-tax profit nosedived by 37 per cent from 17.04bn/- in 2017 to 10.76bn/- in 2018. However, the firm said they were optimistic that the company’s financial performance in 2019 would remain health by maintaining strict costs control measures to lower operating costs.

Orbit Securities said in one of its weekly synopsis report that in what may be described as a prediction of poor performance, the price of Swissport dropped three days before the company released financial results.

The firm said the last year profit declining in revenue was for the third year in a row.

Earnings Per Share (EPS) fell by the same proportion as the net profit to 207/19 per share from previous year’s 331/50 while the company issued a dividend of 103/60 per share realizing a dividend yield of 6.05 per cent which was above DSE market average of 4.06 per cent.

Swissport, despite stiff competition, is however, “optimistic” to continue to adopt strategies to the prevailing business environment in the country.

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