Crown Paints record 43 pc growth in profit

Paint manufacturer, Crown Paints has registered 43 percent growth in pretax profit to record Sh 216 million for the year ended 31st December 2015 despite the exchange loss of Sh 265 million. This is a significant improvement as compared to last year’s performance which recorded a profit of Sh 151 million.

Crown Paints Chief executive Rakesh Rao attributed the improved performance to robust construction industry in region particularly Kenya.

The company’s turnover registered a 12 per cent growth to Sh 6.7 billion from last year Sh 6 billion. The group continued with higher liquidity and maintenance of reasonable net working capital.

“Cash flows generated from operations improved to Sh648 million, compared to previous year of negative Sh 9 Million,” he said.

He decried the devaluation of the region’s currencies which was affecting the performance of the sector. The earnings per share decreased to Sh 0.65 per share (2014 – Ksh 0.83) and this is reflected by higher return on investments resulting in higher net worth for the shareholders.

The Directors recommended the payment of a dividend of 12 per cent or Sh 60 cents per share for the year ended 31 December 2015 (2014 Sh 1.75), subject to withholding tax where applicable and to approve the closure of the Register of Members from the close of business on 15 June 2016 for one day only for the purpose of preparing the entitlement of dividend.