Olympia registers 25pc drop in after-tax profit

Olympia Capital deputy chair Michael Matu. PHOTO | FILE | NATION MEDIA GROUP
Olympia Capital deputy chair Michael Matu. PHOTO | FILE | NATION MEDIA GROUP 

Listed investment firm in construction and real estate, Olympia Capital, has recorded a 25 per cent drop in net earnings in the half year period to August 2016.

In the results released Thursday, the firm says it registered Sh8.1 million in net profit compared to Sh13.6million posted for the same period last year.

The firm's operating profit, usually earned from normal core business operations, dropped by Sh12 million in the same period - playing a major part in its drop in profitability.

This is despite the country’s booming construction sector where Olympia is expected to make a chunk of its revenue.

The firm deals in the sale of vinyl floor tiles and adhesives as well as in various real estate investments such as Avon Centre and Heri Heights Ltd.

The company also has investments in cleaning chemicals, fire equipment and water pumps.

Olympia, formerly known as Dunlop Kenya Limited (DKL), was initially established as a branch office of Dunlop UK in Kenya in 1968 (then a British multinational) to carry out the business of manufacture of vinyl floor tiles, adhesives and sports equipment.

No dividend

The firm, which was registered in Kenya in 1970 and got listed at the then Nairobi Stock Exchange in 1976, did not declared any interim dividends to its shareholders.

“The directors do not recommend payment of interim dividend,” the company said in a statement signed by deputy chairman Michael Matu on Thursday.