GALLANT SAMEER AFRICA LTD'S LOSING BATTLE.

It appears that faced with decreasing in flow from all revenue streams, Sameer Africa ltd, a company quoted on the Nairobi securities exchange, has been fighting gallantly to remain in control but, alas, it is a losing battle.

According to the unaudited half year figures to June released today by company secretary, Edgar Imbamba, Sameer Africa has been trying its best to cut its coat according to the available cloth but is unable to, all the same.

First, total revenue for the half year dropped by 1.5% to Kes 1507.3m as other operating income went down by 6.27% to Kes 7.78m; as finance income declined by 99.3% to Kes O.15m and as share of other companies profit eased by 0.48% to Kes 6.23m.

The drop in core revenue had been mild at 1.05% to Kes 1493.2m but the direct cost of generating it rose by 4.39% to Kes 1079.7m resulting in 9.97% drop in gross profit to Kes 413.5m.

Yes, Sameer Africa's response was good and would, indeed, have been adequate but for the 129.3% increase in finance cost to Kes 55.5m.

Gallant Sameer Africa cut selling and distribution expenses by 11% to Kes 94.4m; administration cost by 8.83% to Kes 266.5m and other operating expenses to Kes 8.96m, down 38.2%.

Unfortunately, this gallant effort failed to stop Sameer Africa's profit before tax from tumbling by 96.1% to Kes 2.32m compared to Kes 58.8m at the same time I'm 2016.

SAMEER AFRICA LTD: Kesm, Half year
                                  2017.           2016
Total income         1507.3.        1530.3
Core revenue.        1493.2.        1493.6
Cost of sale.           1079.7.        1034.3
Group profit.             413.5.          459.3
Other op. Income         7.78.            8.3
Distribution etc.          94.4.         106.1
Administration.        266.5.          292.3
Other op. Cost              8.96.          14.5
Finance income.          0.15.          22.1
Finance cost.               55.5.          24.2
Share of profit.             6.23.           6.26
Profit before tax          2.32.          58.8
Profit margin %.           0.15.         3.84)
Working capital.        815.8.        841.2

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