Sameer Africa Income Drops 15pct in 2019 on Closure of Tyre Business to Ksh 1.76Bn

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Sameer Africa PLC, ( SAMR.NR) revenue reduced by 15 percent from Ksh 2.07 billion in 2018 to Ksh 1.76 billion in 2019 due to the closure of its retail outlets in the East African region.

The firm says its losses ‘significantly increased’ following the decision to exit from the tyre business in 2018.

This led to the impairment of the tyre business assets and accrual of staff redundancy costs. The Nairobi listed firm said it would incur approximately Ksh 223 million made up of Ksh 60 million being in payment of staff redundancy costs and Ksh 163 million being impairment costs on fixed assets as exit costs.

“Due to this, the earnings for the year ended 31 December 2019 are lower by 25 percent of the earnings reported for the same period in 2018,” said the firm in its Audited Financial Results Ended 31 December 2019.

Following the decision to exit the tyre business, Group revenues are forecast to reduce by Ksh 1.49 billion, however, the profitability of the Group is expected to increase due to the elimination of losses that were generated by the tyre business.

It projects full-year profit in 2021 of Ksh 185 million against a forecast of Ksh 69 million this financial year 2020.

The Board of Directors did not recommend the payment of a dividend for the year.