Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

Profits slow down at auto dealer CMC

NAIROBI, Kenya, May 23 – Auto dealer CMC Holdings has reported a 0.7 percent decline in profit as net income stood at Sh187.6 million for the first six months of the current financial year.

The drop in profitability from Sh188.9 million a year earlier is attributed to a decline in revenues as turnover fell 11 percent to Sh6.1 billion after the company minimised sales on credit in both the Kenyan and Tanzanian markets.

The expenses for the period are 18.7 percent more than the previous period mainly due to a more aggressive doubtful debts provisions policy adopted in the current period.

Net finance costs reduced by 38 percent due to better management of its banking facilities. Low orders from the Kenyan government also saw the number of cars sold drop to 1,202 from 1,272 a year earlier.

"Uganda on the other hand has had a slow year due to the general elections in February and disruption of business thereafter," CMC said in a statement.

With brands such as Land Rover, Volkswagen and Ford under its wing, the firm however expects increased sales in the second half of the financial year.

In line with proposals from the board of directors, the auto dealer did not recommend any interim dividend to be paid.

CMC recently saw significant changes to the Board, with the resignation of long serving Chairman Jeremiah Kiereini as well as the exit of Managing Director Martin Foster.

Follow us on TWITTER @CapitalFM_Kenya

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...