Mumias Sugar Company (NSE; MSC) has announced operations will remain closed until further notice following a special Board meeting.
The Nairobi Securities Exchange listed company said the closure was due to cash flow problems and more than 1600 employees will be affected. The miller’s Managing director Errol Johnson said they were exploring options to deal with the cash flow crisis in order to “fix equipment which had contributed to the company’s poor performance due to inconsistent maintenance.”
In March, Mumias Sugar received about Sh 240 Million from the government as part of the company’s ongoing bailout arrangement worth Sh3 billion which was requested in 2015.
Just last week, Mumias Chairman said that the current CEO had voluntarily opted not to seek a second term but will serve the company in other capacities. The company has advertised the position as the current CEO’s 2-year renewable term ends in August.
In February this year, the company released its financial results for the six months ended December 2016 posting a 40 per cent decline in net revenue to Sh 1.53 Billion while Loss Deepened further By 70% To Sh 3.79Bn!!