This archive report was first published on 14 November 2019.
On November 14, 2019, UAP Holdings Limited issued a profit warning, citing depressed property prices and a tough environment in South Sudan, signaling the second consecutive year in loss territory.
The local property market has slowed down this year, with indications that the weakening performance of the property market in Kenya and the uncertain political environment in South Sudan will likely lead to further impairments in the carrying value of certain group investment properties.
According to the firm, the performance for the financial year ended December 2019 is set to drop by at least 25 percent, sinking the firm deeper into losses. This follows a Sh518 million loss in 2018, the first in a decade.
However, the board expects underwriting margins and results from operations to improve as it turns around the performance of the core insurance businesses.
UAP Holdings Limited has also announced the entry of two non-executive directors, Richard Treagus and Shailesh Devchand, whose appointment became effective November 13.
The diversified financial services firm had previously issued a profit warning in 2018 citing lower asset valuations and one-off retrenchment costs. It last returned a profit in 2016, totaling Sh608 million.
