The management attributes the loss to the economic downturn that has negatively affected the transport sector/FILE
The management attributes the loss to the economic downturn that has negatively affected the transport sector.
“The board of Express Kenya would like to inform the shareholders and the general public that the company has been going through a period of business instability and that the earnings for the period will be lower compared to the earnings of the previous period,” the management stated.
The firm also attributes the loss to its re-engineering process that included diversification of its investments into the real estate sector.
“The company will at the shareholders meeting to be held in due course brief shareholders on the future of the company,” management said citing the board’s commitment to turn around the performance.
Other listed companies on the loss making trend in the period under review include Real estate firm Home Afrika that has made a loss of Sh111 million compared to a net profit of Sh42 million same period last year.
The management attributed the loss to a 60 percent drop in revenue.
“The group reported a drop in revenue and the corresponding cost of sales to Sh217 million from Sh550 million and Sh219 million from Sh326 million representing a 60 percent and a 33 percent reduction respectively from a comparative period the previous year,” the management said.
The firm’s total assets grew to Sh3.8 billion from Sh3.7 billion in 2014 owing to increase in inventories from new projects and the improved valuation of investment properties accelerate.
“We expect to achieve higher margins going forward as the higher margin commercial properties come to market,” the management asserted.