Britam sinks to Sh2.3 billion pre-tax loss

Britam Holdings has reported a Ksh2.29 billion loss for the financial period ended December 31, 2018 compared to the Ksh865.8 million profit it raked in last year on the depreciating value of its stock on the floor of the Nairobi Securities Exchange (NSE) and low returns from its property investments.

The group also attributes the huge loss to costs it incurred when it restructured during the year.

Also blamed for the loss is the effecting of IFRS 9, international financial reporting rules which specify how an entity should classify and measure financial assets, financial liabilities, and some contracts to buy or sell non-financial items.

The company says it had to invest heavily in financial assets hence the predicament it finds itself in.

IFRS 9 became effective on January 1, 2018.

“The group realised a total comprehensive loss of Ksh2.9 billion vis a vis the Ksh1.9 billion total comprehensive income it posted in 2017,” said the group’s managing director Benson Wairegi in the results’ notes.

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During the period under review, the group’s total assets increased to Ksh103.7 billion while regional businesses contributed to 18% of the group’s earnings.

Shareholder funds also increased 6% to Ksh23.9 billion on issuance of new shares to AfricInvest, an investment company based in Tunisia.

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Following the bad performance, the group’s board has not recommended payment of dividends.