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Rea Vipingo profit up 16pc on asset revaluation

January 27, 2014

CHARLES MWANIKI, cmwaniki@ke.nationmedia.com -1

Rea Vipingo net profit for the financial year ended September 2013 grew by 16 per cent to Sh442.46 million, ahead of what is likely to be a competitive battle for control of the company from three interested takeover bidders. In a statement, company chairman Oliver Fowler attributed the rise in net profit to a gain in the valuations of biological assets held by the firm. The company registered a 16 per cent rise in earnings per share to Sh7.37, with total turnover standing at Sh2.57 billion. "Although the profit before tax for 2012/13 appears greater than that of 2011/12, that is entirely due to a higher gain on the valuation of biological assets. I must caution members that this so called gain does not represent a cash profit," said Mr Fowler . Profit from operating activities fell from Sh319.1 million in 2011/12 to Sh282.8 million in 2012/13, but this was offset by a gain in profit arising from changes in fair value of biological assets- up from Sh61.3 million in 2012 to Sh159.7 million in 2013. However, the company, which offered its shareholders a dividend of Sh1.10 per share for the 2012 financial year, announced that its directors are yet to make a recommendation concerning the dividend payout for the 2013 financial year. "The company has opted not to pay any dividend pending future clarity of ownership," said Standard Investment bank in a market note to clients on Monday. Rea is the subject of three competing takeover bids from majority shareholder R.E.A Trading Limited , Centum Investment and Www. Bid Investment Company . READ: Rea Vipingo battle hots up with entry of third bidder


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Source: Business Daily (Kenya)


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