FEP Holdings Ltd has recorded an 87% drop in consolidated loss before tax for the financial year ending December 2016, improving from Ksh866 million in 2015 to Ksh108 million in 2016. The diversified investment company announced a profit after tax of Ksh106 million for 2016 compared to a loss after tax of Ksh905 million in 2015 due to a favourable tax position.
Speaking when he released the financial results, Maurice Korir, the FEP Holdings Chief Executive Officer said the company’s performance was buoyed by prudent management of operating costs and strong results from its real estate and micro lending units.
“We have had improved business efficiency across the board owing to operational restructuring and better internal controls after the installation of a Sage Evolution Enterprise Resource Planning (ERP) system. Our operating expenses have reduced by 16 percent,” said Mr Korir.
The Group’s gross margin excluding interest on short term deposits improved from 26 percent in 2015 to 34 percent in 2016. Since FEP Holdings embarked on a turnaround programme in the last quarter of 2014, the company has been cutting back on administrative costs by reducing the number of regional offices and adopting technological innovations across the business units.
Fountain Credit Services Limited (FCSL), a microfinance subsidiary of FEP Holdings has introduced Instaloan, a mobile lending platform that helps disburse loans faster and more cost effectively.
“We introduced Instaloan after acquiring a robust IT system dubbed IMAB that has made it easier to access data necessary for the disbursement of loans at the click of a button. This has helped us reduce our physical branch presence and the attendant costs that come with it”, said Mr Korir.
Improved sales for the Group’s real estate division, Kisima Real Estate, also shored up FEP Holdings Performance. The FEP Holdings subsidiary has grown by over 400% recording Ksh106 million in sales in 2016 as compared to Ksh 21 million in 2015.
“This has largely been through progress in processing title deeds and improved customer relations through one-on-one engagement forums,” revealed Mr Korir.
The Group, however, registered a 24 percent dip in revenues as some of the strategic business units did not realize the projected performance targets. “Some project under Fountain Technologies Ltd (FTL) are still ongoing and there is over Ksh1 billion which we will invoice across 2017 and 2018,” added the CEO.
Last year, FTL secured a tender to implement a Ksh1 billion energy infrastructure project for Rural Electrification Authority amongst other projects. “For us to post better results in 2017, we need to recapitalize some of our subsidiaries as well as the holding company. We had a rights issue which was undersubscribed, having raised Ksh120 million against a target of Ksh2.6 billion,” revealed Mr Korir.
Former TV presenter Louis Otieno goes deaf
The only way his hearing can be fixed is by having a procedure undertaken in India called Cochlear implant
Five surprising causes of hearing loss
The number-one cause of deafness is probably quite an obvious one: age. Most people’s hearing begins to decline from 30...
Blind couple celebrates their love in style
As the world marked Valentine’s Day on Wednesday, visually challenged Joseph Mwaniki decided to surprise his blind wife of 27...
Aboud Rogo’s widow jailed for 10 years
Haniya Said was found guilty of conspiracy for supporting an attack in which three women fire-bombed the port city's main police...
Kenya says open to more insurance investors
Kenya has a population of 45 million people, according to Kenya National Bureau of Statistics and the government says it...
Quit if you can’t deliver, Uhuru tells new Cabinet
President said he expected his new Cabinet to help in the achievement of the Big Four Agenda that will transform...
Jubilee MP Alfred Keter arrested for Sh633m fraud
Recently, he was among the four Jubilee legislators kicked out of house committees for defying a State House order on...
I stopped Kalonzo from taking oath, churchman says
Arch Timothy Ndambuki says together with 19 clerics from the county they met Kalonzo prevailed upon him to keep off...
High Court revokes Miguna’s deportation
Justice Luka Kimaru directed the government to deposit Dr Miguna’s revoked passport at the court within seven days
Where patients give witchdoctors first priority
Professional diagnosis by doctors in hospitals is sought as a last resort after the traditional healers have failed