A view of Vipingo Ridge Golf Course in Kilifi. Rea Vipingo said its net profit for the year ended Sept 2013 grew 16pc to Sh442m. FILE
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The company registered a 16 per cent rise in earnings per share to Sh7.37, with total turnover standing at Sh2.57 billion.
Rea Vipingo net profit for the financial year ended September 2013 grew by 16 per cent to Sh442.46 million, ahead of what is likely to be a competitive battle for control of the company from three interested takeover bidders.
In a statement, company chairman Oliver Fowler attributed the rise in net profit to a gain in the valuations of biological assets held by the firm.
The company registered a 16 per cent rise in earnings per share to Sh7.37, with total turnover standing at Sh2.57 billion.
“Although the profit before tax for 2012/13 appears greater than that of 2011/12, that is entirely due to a higher gain on the valuation of biological assets. I must caution members that this so called gain does not represent a cash profit,” said Mr Fowler.
Profit from operating activities fell from Sh319.1 million in 2011/12 to Sh282.8 million in 2012/13, but this was offset by a gain in profit arising from changes in fair value of biological assets- up from Sh61.3 million in 2012 to Sh159.7 million in 2013.
However, the company, which offered its shareholders a dividend of Sh1.10 per share for the 2012 financial year, announced that its directors are yet to make a recommendation concerning the dividend payout for the 2013 financial year.
“The company has opted not to pay any dividend pending future clarity of ownership,” said Standard Investment bank in a market note to clients on Monday.
Rea is the subject of three competing takeover bids from majority shareholder R.E.A Trading Limited, Centum Investment and Www.Bid Investment Company.
