The British American Investments Company Limited announced its audited financial statements for the year ended 31st December 2011 on Wednesday 21st March.
The company reported a net loss of Kshs. 1,957,305,000 in the financial period ended 31st December 2011. In the previous period ending 31st December 2010, the company had reported a net profit of Kshs. 2,713,784,000.
Net cash generated from operations increased from Kshs. 1,598,755,000 to Kshs. 2,200,921,000 representing a 27% increase in net cash from operations from the 2010 period.
Net cash used in investing activities increased fold from Kshs. 758,310,000 in 2010 to Kshs. 3,494,746,000 in 2011 with investment in government securities held to maturity (treasury bills and bonds held to their full length, not being sold before they run their full term) increasing about 4 times from Kshs. 587,271,000 in 2010 to Kshs. 2,265,239,000 in 2011.
In the end, the net increase in cash and cash equivalents (cash equivalents are assets that are easily convertible into cash such as bonds, treasury bills and equity securities) increased from Kshs. 914,118,000 in 2010 to Kshs. 2,888,161,000 in 2011.
Retained earnings however decreased from 4,092,044,000 in 2010 to 1,388,925,000 in 2011 mainly attributable to the net loss.
It is important to note that in 2010, the company had reported fair value gains on financial assets of Kshs. 3,561,685,000 and in its 2011 report, the company had fair value losses on financial assets of Kshs. 3,330,457,000.
Dividends despite the loss
The board of directors, in its meeting held on 21st March 2012, approved and recommended a first and final dividend of Kshs. 0.15 per every ordinary share of Kshs. 0.10.