Two in three NSE listed companies report tough times

Two in three NSE listed companies report tough times

Two in three NSE listed companies report tough times

15 firms recorded losses, 25 reported falling earnings while 26 did not declare dividends sending away investors empty-handed

More by this Author
51 minutes ago Two-thirds of companies that are active on the Nairobi bourse reported losses or reduced earnings in their last financial year, a review by Nation Newsplex reveals.

Fifteen of the 64 companies that traded on the stock exchange reported losses, two less than in the 2015 financial year, while 25 of the companies, or 39 per cent, recorded falling after-tax profits. Another 23 firms, or a third, declared increased profits.

One company, Stanlib Fahari, declared its first full year of trading on the NSE. Fiscal years end in different months for various companies, which is followed by the release of their audited financial reports.

The analysis also finds that a third of the companies announced reduced revenues including eight firms that were profitable.
The performance of NSE-listed companies is a barometer of national economic performance. “When a large number of companies record reduced revenue and earnings it means the economy is doing less than expected,” says Mr Joseph Karogo, a corporate finance specialist with Ventures and Gains Ltd.The listed companies are well known, most-preferred brands in Kenya that customers are willing to buy, according to Mr Karogo. Reduced spending on these products and services therefore indicates diminished spending power of consumers and clients. He says increased competition can also affects a company’s turnover.

Leave a Reply

*