George Kebaso @Morarak
UAP Holdings Ltd has announced Sh190 million profit after tax in its first six months of the year; a 61 per cent decline compared to Sh496 million in the first half of 2017.
According to the firm’s chief executive, Peter Mwangi (pictured) the firm’s restructuring programme gobbled more than Sh300 million between January and May.
Mwangi also cited the company’s efforts to acquire profitable accounts as the reason for the decline in profitability as well as difficult operating conditions in South Sudan and to some level in Tanzania. “The cost of the re-organising the company hit Sh335 million. This is minus other costs. Additionally, an increase in deferred tax expense in some of the subsidiaries increased expenses for the first half of 2018,” he added.
The company’s restructuring exercise, which took five months, saw 100 employees exit the insurance underwriter. However, he said there is a promising future for the company with life business showing good results growing by 14 per cent while investment income grew by 11 per cent in the period under review.