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Kenya

COVID-19 Deals Britam Heavy Blows Leading Firm to Issue A Profit Warning

NAIROBI, Kenya, Nov 28- Financial Services Company Britam Holdings has issued a profit warning for the current financial year ending December 31 2020.

The firm’s Director legal and Company Secretary Nancy Kiruki in a letter addressed to NSE boss Geoffrey Odundo said that the move has been influenced by the challenging operating environment occasioned by the coronavirus pandemic.

“The board of directors of Britam Holdings plc wishes to inform the shareholders of the company, potential investors and the general public that based on the preliminary assessment of the forecasted financial results for the company for the period ending 31 December 2020, the earnings of the company for the current financial year are expected to be sustainability lower compared to the earnings reported for the same period in 2019,” said Kiruki.

“The duration and severity of the impact of the pandemic has adversely affected the business of Britam Holding Plc,” she added in the statement that was also copied to Capital Markets Authority Chief Executive Officer Wyckliffe Shamiah.

According to the company, the areas in the business that have been highest impacted include the performance of the stock market which has led to reduced returns from the equities investments and real estate environment for property and mortgages business.

As for its half-year earnings for the financial year 2020, Britam in August reported an Sh2.3 billion loss before tax.

The results were a drop from Sh2.4 billion it had recorded in a similar period last year. 

In 2019, the diversified investment firm posted a high net profit of Sh3.54 billion on account of higher investment gains.

This saw the company shareholders receive Sh630.9 million as dividends.

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The Group’s total income grew by 38 percent in 2019 to Sh36.4 billion.

Britam remains optimistic that in 2021, the business will perform better on the back of a recovery and stability in the operating environment.

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