NSE-listed investment company Olympia Capital has reported a near five-fold growth in net profit for the year ended February 28, helped largely by tax deferral.
The firm posted an after-tax profit of Sh45.04 million compared to Sh7.88 million in the previous year, helped by a differed tax liability. This means it will in future pay more tax on its income.
In the review period, the firm's revenues were down by 39.3 per cent to Sh500.58 million compared to Sh824.93 million a year before.
Acting CEO Gladys Kamau attributed the huge drop in sales to "delayed execution of several major construction projects. A reduction in sales to government and major corporate companies as well the negative effects of stiff competition".
Olympia Capital - associated with the Matu Wamae family and businessmen Paul Ndung'u and Joel Kibe - is a holding company for six companies operating in Kenya, Botswana and South Africa.
The subsidiaries and associate companies are involved in manufacture of construction finishes, cleaning chemicals, fire equipment, water pumps and real estate development.
"We are facing stiff competition from cheaper Chinese imports," Kamau told the Star, referring to the products the subsidiaries manufacture locally.
Its Kenyan subsidiaries include Mather+Platt, Dunlop Industries and real estate developments - Heri Heights Ltd and Avon Centre.
Three directors have exited Olympia Capital this year, including chief executive Kenneth Kareithi who joined the firm in October 2012. Shyamal Bhavani, who was the Botswana managing director for Kalahari Floor Tile Ltd and Olympia Capital Corporation, retired in March. David Kabeberi also left the board in April.