NAIROBI Kenya, Jun 12 – Car dealer CMC Holdings has recorded a pre-tax profit of Sh231 million in 2012 compared to a loss of Sh209 million posted in 2011.
Speaking at the company’s Annual General Meeting on Wednesday, the troubled firm’s chairman Joel Kibe said the company had taken measures to address challenges facing its business.
Such measures included strengthening key brands, resolving matters related to shareholders and re-aligning its entire business strategy to grow market share and improve customer service.
“As you all know, we have had a few turbulent months. The Group has faced several challenges stemming from the historic issues of poor corporate governance that have resulted in the company’s shares being suspended from trading at the Nairobi Securities Exchange. Despite these challenges, aggressive efforts undertaken during the year by the Board, management and staff ensured enhanced Group performance,” he said.
He disclosed that CMC was in talks with potential strategic investors, “Yes, we are in talks with some serious potential investors. They are doing due diligence as we speak.”
CMC Acting Chief Executive Officer Mary Ngige said the company had made considerable progress in recovering money owed to it.
“There were Sh600 million in debts given out by the previous management without documentation or collateral. These debts have been rolled over many years. We are using debt collectors to recover the money and we are making good progress,” said Ngige.
She told shareholders that the company was re-aligning its business model to focus on the customer by providing suitable automotive and agricultural solutions and efficient after-sales service while increasing shareholder value.
“We have commissioned PricewaterhouseCoopers to assist in re-defining our business strategy, streamlining the Group’s operating model and realigning processes, functions and technology to meet the Group’s strategic objectives,” she explained.
She added that the company’s performance in the first six months of the financial year 2013 showed a marked improvement in turnover and profitability. “The outlook for the remaining part of the year is promising with the company seeking to aggressively increase its market share,” stated Ngige.
Shareholders were also assured that the company’s management had made considerable progress toward having the suspension imposed on trading in its shares by the Capital Markets Authority(CMA) lifted.
“Our discussions with the regulator (CMA) are progressing well. We hope to have the suspension lifted soon that trading the shares can resume,” said the CMC Chairman.