Kakawa Discount House declares N10.2b gross earnings in 2010

FOR the year ended December 31, 2010, Kakawa Discount House has announced gross earnings of N10.2 billion, up by 62 per cent from N6.3 billion recorded in 2009.

Also, total assets within the period increased by 33 per cent to N148.3 billion, while the shareholders’ fund rose to N13.1 billion from N9.7 billion in 2009, representing an increase of 34 per cent. It recorded a profit before tax of N3.2 billion.

Based on the result, according to a press statement made available to The Guardian, shareholders of the company recently approved N2 billion for dividend, representing 50k for every N1.00 ordinary share.

The Chairman, Board of Directors of Kakawa, Mr. Bisi Onasanya, attributed the performance “in the face of the challenging operating environment to the company’s commitment aimed at optimising the limited opportunities available in the market place, while implementing cost management measures in the face of continuing dwindling discount margins”.

Explaining further, Onasanya said:  “Kakawa remained committed to its business model- securities trading, asset/wealth management and corporate finance. Our resilience was once again stretched but found to be sufficiently firm. As the market took new turns, we aligned our activities to take advantage of the available opportunities, especially in the area of securities trading.

“Looking ahead, Kakawa recognises the negative implication of the current dearth of quality assets and indeed tradeable commercial securities in the Nigerian financial services space for its business but shares a strong belief that the situation provides a catalyst for the discount house sub-sector to spearhead market development by engaging the regulators and issuers alike to ensure that this crucial part of the market remains vibrant, whilst conforming to international best practices”.

Source : Guardian