Machinery-dealer Car & General has dampened investors' hopes for a double-gain by stating that shares which will be issued in the recently announced bonus offer will not qualify for dividend payment. The company's stock jumped 22 per cent to Sh45 on the day following announcement of a bonus issue and final dividend payout of 80 cents per share. In a statement issued Tuesday, Car & General said information that the dividend pay would not be applicable to the bonus shares was omitted in last week's announcement. "This part of the sentence was not included in the directors report, and for the sake of clarity we confirm that the bonus shares will indeed not qualify for the final dividend in respect to the financial year ended September 30, 2013 . We trust there has been no misunderstanding/misinterpretation regarding the final dividend of the bonus shares," said the statement. This means that investors who relied on the directors report for the bonus announcement without referring to the attached commentary would have been unaware their shares were not liable to receive the dividend payment. The company reported an 18 per cent increase in net profit for the year to Sh315.79 million due to increased sales, while the dividend payout went up by 45 per cent to 80 cents a share. The company's share jumped 22 per cent to Sh45 following announcement of the results, with investors factoring in the bonus share and higher dividend announcement. Books closure for both dividend and bonus is at the close of business of February 19, 2014 . "Car & General leapt 22.4 per cent as investors seemed rather thrilled by the bonus share issue," said Genghis Capital in a market report following the announcement on January 28 . The share, which opened the year at Sh30, has consolidated the gains achieved last week and closed trading Tuesday at an average of Sh44.25. The company's revenue for the past year was boosted by increased sales in the Kenya and Tanzania TVS two and three wheeler core market. During the year, the company introduced Korea's Doosan construction equipment and Japan's Kubota tractors, and also started the CKD motorcycle plant in Nakuru. READ: Car & General begins assembly of motorcycles in Nakuru plant The company's core business is sales and service of power equipment, household goods, agricultural tractors and implements, commercial laundry equipment, motorcycles, vehicles and other machinery. In March 2013 , it said it would make investments in real estate in East Africa as part of its plan to diversify revenue streams, announcing that it was putting up a 120,000 square feet office block in Kampala and another one in Nairobi . The Kampala project was slated to start in the last quarter of 2013, while the Nairobi one is scheduled for this year.
Most Popular Stories
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- Apple, HP, Intel May Take a Hit from Slowdown in Smartphone Sales Growth
- Elizabeth Vargas' Husband Marc Cohn Addresses Rumors
- Keurig Adds Peet's coffee, Alters Starbucks deal
- Motley Crue's Nikki Sixx Marries Model Courtney Bingham
- U.S. to Relinquish Gov't Control Over Internet
- FDIC Files Lawsuit on Behalf of Banks Allegedly Hurt by Libor Scandal
- Chinese e-Commerce Giant Alibaba Gears for IPO in U.S.
- Some California Cities Seeking Water Independence
- Quiznos Files for Chapter 11