Sameer Africa net loss down 68pc

0
568
Sameer Africa
PHOTO/COURTESY

Sameer Africa has reduced its net loss by 68 per cent to Ksh. 58.5 million in the first half of the year down from Ksh.182.7 million recorded in a similar period last year.

The Nairobi Securities Exchange-listed firm has party attributed the turn around to the discontinuation of non-performing businesses.

“Following the group’s restructuring during the first half of 2020, and the discontinuation of loss-making operations, the performance during the second half of this year is forecast to improve as compared to the first half,” Sameer said in a statement.

The firm shut down its underperforming tyre unit in May, to focus on real estate business, which it says is lucrative. Sameer’s current property investments include land holdings and stakes in Sameer Business Park (25 percent) and Sameer Industrial Park (100 percent), which lease space to tenants.

The company’s sales in the first six months of the year fell 52.6 per cent to Ksh.440.9 million, reflecting the impact of the tyre business closure. Sameer’s costs similarly declined, reducing the loss even further.

“Group overheads for the period reduced to Sh128 million as compared to Sh339 million during the first half of 2019, adapting to a lean operating structure,” Sameer said.

In February the firm announced plans to cut staff from its payroll in an effort to cut down on operating costs. The employees were laid off in batches between February and April with the firm also revealing plans to close a number of its tyre centres and offices across the country this year.

“Arising from the foregoing, the board of directors has resolved to restructure the company further by aligning the company operations to become more of a trading and distributorship outfit,” Sameer Africa Acting Managing Director Peter Gitonga said in a notice addressed to Nairobi County’s Labour office then.

ALSO READ: Sameer posts Ksh. 182.8 million half year loss

LEAVE A REPLY

Please enter your comment!
Please enter your name here