Carbacid Investments plc, an investment holding company that has invested in carbon dioxide gas production processing and marketing through its main operating subsidiary, Carbacid (CO2) Limited, has issued a profit warning for the full year. It has reported a 36% dip in Profit After Tax.
“Based on the company’s unaudited financial results for the first six months ended 31st January 2019 and the company’s second-half forecast particularly as regards the investment portfolio, profit for the full year is projected to be at least 25% lower than the previous financial year,” said Nalin Kothari, the Company Secretary on behalf of the Board.
Carbacid Investments main subsidiary is Carbacid (CO2) Limited, a company that produces and markets carbon dioxide gas.
The firm which also has investments in property, in shares in other listed companies, investments in bonds and financial assets, posted a profit of KSh298 million for the year ending June 2018 compared to KSh352 million in 2017.
This was attributed to increased operational and administrative costs and a loss in equity investments.
The company’s net cash generation from operating activities remained relatively stable at KSh296 million compared to KSh352 million in the previous year.
The Board of Directors then recommended a final dividend of 70 cents per share.
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“Given the prevailing economic weakness in the region, the Group expects the operating environment to remain challenging. The volatility of the other East African currencies and intensifying local competition will continue to pose a challenge to the export business of the Group.
Notwithstanding the challenges, the Group continues to remain focused in growing its core businesses and is positioned to take advantage of opportunities as and when these arise. Backed by a strong balance sheet, the Group will continue to seek growth opportunities, locally and abroad.
This includes focusing on markets and services where the Group has a competitive advantage, allocating capital where we see the ability to generate attractive risk-adjusted returns and investing where we see an opportunity to expand our market share.
Ambassador Dennis N O Awori statement, during its 48th Annual General Meeting.
Last paragraph comments from the Chairman’s statement For the year ended 31st July 2018
