This archive report was first published on 6 January 2022.
Car & General, a Nairobi Securities Exchange-listed firm, has made history by quadrupling its dividend payout to shareholders after a significant jump in net profit in the financial year ended September 2021.
The company, which deals in power generation, engineering, and automotive products, including motorcycles and tuk-tuks, posted a record Sh887.24 million net profit, up from Sh274.13 million in 2020.
According to the company's financial reports, the Sh887.24 million net profit is the highest ever recorded, surpassing the previous record of Sh315 million set in the financial year ended September 2013.
As a result of this impressive performance, shareholders will receive a record Sh3.20 per share dividend, amounting to Sh128.33 million, the highest distribution in the company's history.
Paul Wanderi Ndung'u, the single largest individual shareholder as of September 2020, will pocket Sh10.27 million for his eight per cent stake.
The dividend, which will be paid by March 24, is four times the Sh32.08 million paid in 2020.
Car & General has traditionally paid between Sh0.60 and Sh0.8 per share, but skipped payouts in 2015 and 2016.
Additionally, the company has sweetened the deal for investors by announcing the issue of one new fully paid-up bonus share for every one ordinary share held.
“Subject to receipt of the requisite approvals, shareholders will be credited with the bonus shares on Friday, April 8, 2022. The bonus shares will not be entitled to receive any dividend declared and approved for the year,” said Chief Executive Vijay Gidoomal.
