Companies

Olympia Capital bounces from loss to Sh5.7m profit

matu

Olympia Capital deputy chairman Michael Matu. FILE PHOTO | NMG

Olympia Capital Holdings #ticker:OCH has posted a Sh5.74 million net profit for the year ended February 2019, an improvement from Sh3.48 million loss posted in the previous financial year.

The improved performance for the Nairobi Securities Exchange-listed investment firm was mainly supported by 11.8 percent jump in revenue from Sh458.7 million to Sh512.7 million.

This was despite operating expenses rising from Sh179.2 million to Sh198.6 million and finance costs linked to borrowing increasing from Sh19.5 million to Sh22 million during the review period.

The profit is significantly lower than the Sh45 million posted in 2014 or Sh53.26 million of 2009, the best performance in 12 years.

During the year, fair value adjustment of financial assets, mainly shares, dropped by Sh28.2 million, reflecting the bearish environment on the Nairobi bourse last year.

The firm cut its borrowing by Sh7.45 million to Sh86.6 million despite the rise in finance costs.

Olympia Capital Holdings, formerly Dunlop Kenya Limited, was initially established as a branch office of Dunlop UK in Kenya in 1968.

In 1970, the company was formally registered in Kenya and got listed at the NSE in 1976.

It has six firms operating in Kenya, Botswana and South Africa. Its subsidiaries include Avon Rubber Company, Olympia Capital Corporation, Mather and Platt Limited and Olympia Capital Corporation Limited.

Michael Matu was the firm’s CEO for 17 years until 2012 when he was replaced by Mr Kenneth Kareithi.

Mr Matu then made a comeback in 2014 after his predecessor was forced out.