Connect with us

Hi, what are you looking for?

The Ford Ranger is among the car models sold by CMC Holdings. Photo/ FILE


Down but not out; CMC posts profit in 2012

The Ford Ranger is among the car models sold by CMC Holdings. Photo/ FILE

The Ford Ranger is among the car models sold by CMC Holdings. Photo/ FILE

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.

Advertisement. Scroll to continue reading.

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.

Click to comment

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...


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


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


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


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