Olympia Capital's Operating Gains Undermined by Six-Fold Surge in Finance Costs

Olympia Capital Holdings reported a slight rise in half-year earnings to KSh 14.37 million, as strong performance at the operating level was sharply curtailed by a dramatic increase in finance costs.

• •The key driver in the period ended August 2025 was a more than six-fold rise in borrowing expenses, which significantly constrained the flow of earnings to shareholders.
• •Despite a 3.9% dip in revenue to KSh 266.77 million, profit from operations rose 6.1% to KSh 181.75 million, reflecting improved efficiency and cost control within core business units.
• •Controlling this funding pressure will determine the earnings trajectory into the full financial year.

Income Statement (YoY Comparison)

*Increase in cost = negative earnings impact.

This operational progress was overshadowed by financing pressure. Finance costs surged to KSh 29.14 million from KSh 4.53 million, a 543% increase. Consequently, operating profit after finance charges fell 17.6% to KSh 21.23 million from KSh 25.76 million a year earlier.

The rise in finance costs is directly linked to higher short-term borrowings. Current borrowings increased 69.9% to KSh 90.78 million, contributing to a rise in current liabilities to KSh 286.38 million. Total assets stood at KSh 1.97 billion, while equity attributable increased to KSh 1.24 billion.

Balance Sheet (Compared to Feb 2025 Audited)