CMC Holdings has reported a 219% increase in half-year profits for the period ended March 31, 2012. This jump can be attributed to huge net foreign exchange gains and an emphasis on cost control to minimise operating expenditure.
Profit after tax, for the six months, rose to KES 383 million up from the KES 120 million recorded over the same period the previous year. The board of directors has not recommended the payment of an interim dividend since the earnings per share has increased to KES 1.32 from KES 0.41 last year.
This increase in profits has come despite the internal wrangles that have rocked the auto-dealer since 2011. The major shareholders have been fighting for control of the company.
Turnover rose 4% KES 6.38 billion up from KES 6.11 billion recorded the previous year despite a decline in the number of units sold. The company’s Ugandan subsidiary saw a 4% decline in sales but Tanzania showed strong 18% growth in turnover.
The CMC share is suspended from trading on the Nairobi Stock Exchange as rival shareholders battle for control of its board.