[2008-07-18]  Standard Group reserves jump to Sh183 million
A restructuring of the Standard Group Limited’s balance sheet boosted its surplus capital to Sh183 million by December 31 last year, up from Sh27 million in 2006.

The 578 per cent increase in reserves was a resounding vindication of the Group’s three-year turnaround strategy, designed to put the company on an even firmer footing.

This was disclosed at the company’s 90th annual general meeting presided over by Group Chairman Robin Sewell in Nairobi yesterday.

Mr Paul Melly, the Deputy Chairman and Strategy Adviser, said the restructuring was meant to put the company on good stead for sustained dividend payout culture to shareholders.

“The restructuring of the balance sheet has been completed. The process has seen a significant investment in the priority areas of our business,” Melly told shareholders.

During the period under review, the Group recorded a 90 per cent surge in profit before tax to Sh413 million, from Sh304 million in 2006.

The Group’s balance sheet continued to strengthen, with total assets exceeding Sh2.2 billion, from Sh1.2 billion in the same period.

The period also witnessed the Group’s highest level of investment in two decades.

In a strategy that is expected to see an investment of more than Sh1.4 billion by the end of this year, the Group initiated a phased investment plan last year, starting with investment in an ultra-modern, printing plant on Nairobi’s Mombasa road.

The Group’s improved operating and financial position informed the decision by the board to declare an interim dividend in 2006.

In April this year, the board declared an interim dividend of Sh1.1 for every ordinary share held for the financial year ending December.

On Wednesday, shareholders re-elected Mr John Opiyo as an executive director to the board.

Ms Zehrabanu Janmohamed, Dr James Mcfie and Mr Samuel Tiampati were re-elected as independent directors while Mr Sarvjeet Channa was elected as executive director.


Source: (c)2008 THE STANDARD