Sameer Africa revenues reduced by 15 percent in 2019 to Ksh1.76 billion from Ksh2.07 billion reported in 2018. The board blames the closure of several retail outlets in Kenya and across the East African region for the drop in revenues.
The loss for the year ended 31 December 2019 grew to Ksh1.06 billion from a loss of Ksh 529 million recorded in 2018. Total assets 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 impairment of the tyre business assets and accrual of staff redundancy costs.
The auditors, RSM Eastern Africa, note that Sameer Africa’s financial statements have been prepared on a going concern basis on the assumption that the shareholders and lenders will continue their support by providing adequate funding and that the business strategy will be achieved.
RSM added that the summary financial statements and the summary directors’ remuneration report do not contain all the disclosures required by the IFRS and Kenya Company Act, 2015.
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.