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FBC Holdings profits down 17 percent
29/08/2014 00:00:00
by The Source
 
 
RELATED STORIES
FBC Bank secures US$60m facility

FBC Holdings (FBCH) has recorded a 17 percent decline in after tax profit to $6,8 million for the half year ended June 30 weighed down by losses in its manufacturing subsidiary Turnall, from which it will complete its exit next month.

The group recorded an 11 percent increase in income to $40,9 million during the period under review, while its assets grew by six percent to $489 million.

Net interest income was up 62 percent to $15,9 million during the period under review. Administrative expenses were up 13 percent to $24,6 million.

FBC Bank’s contribution to the group revenue grew five percent to $4,3 million, while the building society’s contribution grew six percent to $3,3 million. Microplan Financial Services recorded a 179 percent growth to $1,5 million.

The group was, however, weighed down by losses in four of its subsidiaries – Eagle Insurance, FBC Reinsurance Limited, FBC Securities and Turnall Holdings Limited.

Group chief executive John Mushayavanhu told analysts at a briefing on Thursday that the board of directors made a resolution earlier this month that the company would distribute Turnall shares to FBCH shareholders.

“The whole 58 percent that we hold in Turnall, less transaction charges, are going to be distributed to the shareholder,” he said.

This, he said, would translate to 0.39 Turnall shares for every ordinary share held in FBCH.

“After that happens, Turnall will cease to be a subsidiary of FBCH,” he said.

Mushayavanhu said an extraordinary general meeting will be held in September for shareholders to vote on whether they want the Turnall dividend.

Meanwhile, Mushayavanhu said the group had secured a $10 million Grain Import Facility which was being turned into a grain buying facility.

“We have realised that there is a lot of grain out there. The millers may not have the funding to buy the grain and we do not want that grain to go to waste,” he said.

The group is also jointly raising $15 million with Agribank for the 2014/15 agriculture season.

It has also repaid $23 million to Afreximbank and PTA Bank.


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