Swissport Tanzania Ltd — the majority shareholders of Dar es Salaam Handling Company (Dahaco) — has registered a pre-tax profit of Tsh2.9 billion ($2.5 million) in the six months ended June 30, up from Tsh2.7 billion ($2.3 million) in the same period the previous year.

The net profit after tax was Tsh2.1 billion ($1.8 million), compared with Tsh1.9 billion ($1.6 million) last year.

According to chairman of the board, Urs Sieber, the company overcame increased operational costs to record an improved performance in production and profitability.

The company handled 8,275 flights and 12,924 tonnes of cargo signifying a growth of 6 per cent and 11 per cent respectively compared with the first six months of 2007.

Mr Sieber said the result is 10 per cent above what was realised during the same period last year, and that earning per share reached $0.058 (Tsh58.71) an improvement of 11 per cent.

“Operating revenue grew by 11 per cent to Tsh8.9 billion ($7.6 million) while the cost increased by 12 per cent to Tsh5.8 billion ($5 million) resulting in a pre-tax profit of $2.8 million,” said Mr Sieber.

On May 16, the Tanzania Civil Aviation Authority granted Swissport a five-year licence to operate at Category One airports.

This means that the company can operate at any airport in Tanzania, subject to being granted a concession by the respective airport authority.

The company is currently studying the viability of some of the airports in the country with a view to investing “while at the same time waiting for the decision regarding liberalisation of the industry,” according to said Mr Sieber.

The board has announced an interim dividend of Tsh40 per share, or a total dividend of Tsh1.4 billion ($1.2 million) compared with last year’s interim dividend of Tsh1.3 billion ($1.1 million).

The share register will close on September 15, and the last day of trading-cum-dividend is September 8.

Swissport has, besides recording improved profits, recorded an increased in the value of its fixed assets (non-current assets) from Tsh4.1 billion ($3.5 million) last year to Tsh4.3 billion ($3.7 million). Current assets rose from Tsh4.8 billion ($4.1 million) to Tsh5.5 billion ($4.7 million).

Dahaco was formed in 1977 following the collapse of the East African Airways and has registered a steady growth over the years.

It was conceived after Air Tanzania Corporation, which has since been privatised, decided to concentrate on its core business of flying.

In May 2000, the company was privatised, with Swissport acquiring a 51 per cent stake while the Treasury Registrar, on behalf of the Tanzania government, held the rest — until May 2003, when these shares were sold to the public through an initial public offering.

In June 2003, the company was listed and started trading on the Dar es Salaam Stock Exchange.

Dahaco offers passenger, ramp, planning and management services and cargo and security services.