Car & General profit doubles to Sh72mn

May 22, 2014
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Turnover was at Sh3.9 billion, 22 percent higher than the same period in the previous year/FILE
Turnover was at Sh3.9 billion, 22 percent higher than the same period in the previous year/FILE
NAIROBI, Kenya, May 22 – Car and General has posted a 110 percent increase in net profit to Sh72.6 million for the first six months ending March 31 from Sh34 million recorded same period last year.

Turnover was at Sh3.9 billion, 22 percent higher than the same period in the previous year while other operating income increased by 47 percent to Sh16.7 million from Sh11.3 million recorded last year.

The company has over the period added three franchises that include Doosan construction equipment, Kubota tractors and MRF tyres which management anticipates will continue to contribute positively to revenue in the second half of the year.

The company hopes to add the Toyota forklift franchise in August this year.

“Going forward, prospects in the region look positive, which should lead to a growth in demand for all products. Critical to prosperity will be control on security and good governance to ensure stable political and economic environments,” the management stated.

The firm however expects a tough six months to the end of the year as current security challenges puts pressure on demand, diminishes investor confidence and creates volatility in exchange rates and interest rates.

“The next six months may prove challenging in Kenya, given the current terrorist activity, which is likely to diminish investor confidence and create volatility in exchange rates and interest rates. This reduces overall demand,” the management said.

The company’s directors did not recommend an interim dividend.

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