UAP Holdings makes Sh518 million loss in 2018
Financial services firm UAP Holdings has posted a loss for the year to December 2018, owing to rising insurance claims and reduced yield from its property investments.
The company’s loss for the period stood at Sh518 million compared to a profit after tax of Sh608 million in 2017.
The firm in a statement said its profits were dented by a combination of factors led by increased claims and reduced returns from the property business in Kenya and South Sudan.
“The combination of a bearish performance on the Nairobi Securities Exchange, the contracting economy in South Sudan and increased competition and once-off restructuring costs led to declined profitability for the business,” said Peter Mwangi, Group Chief Executive Officer.
"The Nairobi Securities Exchange 20 Share Index was down 23.5 per cent in 2018 thus negatively impacting the Group's holdings on the bourse with unrealized losses on equities amounting to Sh478 million," noted the firm.
Additionally, the Group suffered an Sh604 million loss from a valuation write-down of its property in South Sudan.
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The Group also parted with Sh780 million owing to failed investments in corporate bonds issued by Athi River Mining (ARM) and lost deposits by the failed Tanzania's Bank M.
"We expect to realize more savings in 2019 given that the impact of the reorganization exercise will be experienced for the full year," he added.
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UAP HoldingsNairobi Securities Exchange