CMC Holdings

CMC Holdings FY09 Pre-tax Profit falls 39%

Car dealer, CMC Holdings reported a 39% decline in its pre-tax profit for the year ended September 30, 2009. Coming a few weeks after the company issued a profit warning to its shareholders last month, an audited preliminary financial statement for the year under review shows that vehicle sales went up by a mere 2.1% from Ksh.11.5 billion in 2008 to Ksh.11.7 billion. However the company still commands a substantial market share and if recovery ensues demand might be stimulated, improving the company’s bottom line.

The firm’s firm’s profits declined from Ksh.1.3 billion to Ksh.807 million, due to a near 300% decline in the share of associate profits from Ksh.8 million to a loss of Ksh.16.5 million. The drop is associated to low activity in the major sectors which support sales of motor vehicles especially agriculture, tourism and banking (which reduced asset finance lending during the year).

Operating profit dropped 22.5% to Ksh.1.19 billion from 1.54 billion a year earlier. Similarly, the firm’s DPS was reduced to Ksh.0.35 from Ksh.0.45 in 2008, while EPS dropped to Ksh.0.93 from Ksh.1.59. Net current asset increased marginally by 5.1% to stand at Ksh.3.3 billion. Total assets grew 12.9% to Ksh.5.7 billion.

About CMC Holdings
CMC Motors Group Ltd., which is a subsidiary of CMC Holdings, is the largest company within the group and a player in the East African motor industry with exclusive distribution rights for Land Rover, Ford, Mazda, Volkswagen, Suzuki, Maruti, Nissan Diesel range of trucks (medium and heavy commercial) and buses, Iveco, Bobcat, New Holland and Case tractors.

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