WHY OLYMPIA CAPITAL HOLDINGS IS GETTING WEAKER

Kenya's quoted company, Olympia Capital Holdings Ltd is not having the best of times, according to half year figures to August 2017 released today, October 31, 2017.

Firstly, its revenue decreased by 7.84% to Kes 228.1m from Kes 247.5m by August 2016.

Secondly, its operating cost refused to go down as fast revenue dropped. It declined by 5.16% to Kes 213.2m from Kes 22.4m previously.

The net result of this was that operating profit decreased by 34.4% to Kes 14.9m from Kes 22.7m earlier.

Olympia Capital got one good shot in the arm though and that was from 52.8% dive in finance cost to Kes 2.76m from Kes 5.85m most perhaps because of the cap placed in interest rates in Kenya.

But, this only succeeded in reducing the % drop in profit before tax to 23.6% compared to the higher drop in operating profit. The profit by August 2017 came to Kes 12.5m.

Meaning that on every Kes 100 income by August 2016, Olympia Capital gained Kes 6.83, but now this has shrunk to Kes 5.48.

The trend downwards showed too in the company's working capital which ended August this year at Kes 246.7m as against Kes 281.4 previously.

OLYMPIA CAPITAL HOLDINGS:
                          Kes m, Half year
                                2017.             2016
Revenue.               228.1.            247.5
Total .op cost.     213.2.            224.8
Operating profit     14.9.             22.7
Finance cost.          2.76.              5.85
Profit before tax   12.5.              16.9
Profit margin %.    5.48.               6.83

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