Athi River Mining
Athi River Mining: A closer look at 2006 Financial statements
RESULTS
During the year, turnover grew by 18% to Kshs 2.65 billion over the previous yeas, whilst the profit grew by 32% to Kshs 256 million as compared to the same period last year. The increase came mainly from silicate & lime divisions, driven by increased capacities due to the investments made in the previous year. Cement volumes were marginally lower in 2006 as compared to 2005. This was in spite of commissioning the new clinker plant in the last quarter of the year. Cement sales were greatly affected during October and November due to heavy rains in the Kaloleni area which destroyed a vital road link between the plant and Mombasa-Nairobi highway. The benefits from investment in the new clinker plant in Kaloleni of Kshs 1.6 billion will therefore be seen in the current year. The new clinker plant investment has led not only to a cost reduction, but also to doubling of cement capacity. Further investments in 2006 were also made in increasing capacity of sodium silicate by 50%. This plant was commenced in December 2006. Turnover at both subsidiaries in Tanzania and South Africa also increased during the year. During the year 2006, borrowings increased by Kshs 541 million and stood at Kshs 1.9 billion. The borrowings were used to complete the investment in clinker plant and doubling cement capacity. The fixed assets increased to Kshs 3.2 billion this year from Kshs 2.2 billion in 2005.
| A closer look at selected items in the Athi River Mining 2006 Financial statements | |||
| 2006 (KES) ‘000 | 2005 (KES)’000 | % change | |
| Cash Generated from Operations | 452,226.00 | 326,179.00 | 38.64% |
| Net interest paid | -172,371.00 | -20,795.00 | 728.91% |
| Net Cash from operating Activities | 182,335.00 | 248,748.00 | -26.70% |
| Current liabilities | 1,081,698.00 | 520,465.00 | 107.83% |
| Non Current Liabilities | 1,798,138.00 | 1,508,230.00 | 19.22% |
| Capital & Reserves | 1,324,776.00 | 1,162,219.00 | 13.99% |
| Current Assets | 1,056,814.00 | 1,057,037.00 | -0.02% |
| Non Current Assets | 3,197,514.00 | 2,181,627.00 | 46.57% |
| Turnover | 2,605,302.00 | 2,208,724.00 | 17.96% |
| MANAGEMENT OUTLOOK | |||
| OUTLOOK The Kenyan economy is seeing a robust growth particularly in the cement and construction sector. Similar growth is being witnessed in East & Southern African regions and in the markets we are operating in. We expect the Company to perform well and operate at full capacity in all the divisions. DIVIDENDS The Board of Directors recommends a dividend payment of Kshs ‘.00 per share for the year 2006. Subject to the approval by the shareholders, the dividend shall be paid on or about 29th June 2007 to members on the register at the close of business on 29th May 2007. For this purpose, the register of members will remain closed between 3 0 Ma y and 31 May, 2007. ANNUAL GENERAL MEETING The Annual General Meeting of the Company will be held on Tuesday 12th June, 2007 at 10.00 a.m. at The Crystal Ballroom, The Grand Regency Hotel, Nairobi. |
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