This archive report was first published on 20 May 2020.
Sameer Africa's financial performance took a hit in 2019, with revenues plummeting by 15% to Ksh1.76 billion. This decline was largely attributed to the closure of several retail outlets in Kenya and across the East African region.
The company's loss for the year ended December 31, 2019, grew to Ksh1.06 billion, up from a loss of Ksh529 million recorded in 2018. Total assets also declined, from Ksh2.5 billion in 2018 to Ksh1.53 billion as of December 31, 2019.
Sameer's exit from the tyre business significantly increased the losses for the year, due to the impairment of tyre business assets and accrual of staff redundancy costs.
According to the auditors, RSM Eastern Africa, Sameer Africa's financial statements were prepared on a going concern basis, assuming that shareholders and lenders would continue to provide adequate funding and support the business strategy.
However, the auditors noted that the summary financial statements and directors' remuneration report did not contain all the required disclosures under the IFRS and Kenya Company Act, 2015.
Looking ahead, the board projects that group revenues will reduce by Ksh1.49 billion in 2020 due to the closure of the tyre business in Kenya. Nonetheless, the group's profitability is expected to increase due to the elimination of losses from the tyre business.
