Britam dividend constant despite 5pc profit jump
What you need to know:
- The firm’s finance and strategy director said they intend to increase the property portfolio to 30 per cent while reducing reliance on equities to below a similar percentage.
British-American Investment Company (Britam) will retain dividend payment at Sh0.25 per share despite a 5 per cent jump in profit after tax to Sh2.7 billion for the year ended December 2013.
New business opportunities in counties, product lines, real estate investments and regional expansion saw the firm grow beyond last year’s profit after tax result of Sh2.5 billion.
The financial services firm noted that it was applying the retained earnings on the ongoing growth strategy that has seen it acquire a 99 per cent stake in Real insurance.
It has also acquired a 25 per cent stake in Acorn Group, a property development and project management company, as it looks to increase its property portfolio and reduce reliance on equities.
“We are investing more money in our growth strategy but once we are through, the investments shall generate more dividends to shareholders,” said group managing director Benson Wairegi at an investor briefing.
In 2012, the firm paid shareholders a similar amount after posting a turnaround in profits from the previous year’s loss of Sh1.7 billion.
Property portfolio
The firm’s finance and strategy director said they intend to increase the property portfolio to 30 per cent while reducing reliance on equities to below a similar percentage.
Total income rose to Sh15 billion from Sh11.7 billion last year while investment income grew to Sh6.3 billion, compared with last year’s Sh5 billion.
Impressive performance by the group’s life, general insurance and asset management business saw revenues grow by 31 per cent to Sh9.5 billion from Sh7.2 billion the previous year.
“Our exponential growth across business is a statement that our strategy to diversify our business is good,” said Mr Wairegi.
Britam Insurance Uganda grew strongly by 105 per cent, while the group’s South Sudan business recorded Sh114 million, up from Sh1 million in 2012.
“Our outlook for the year and in the future is positive and we will focus on regional growth into East Africa and investment in real estate through Acorn Group,” noted Mr Wairegi.
Britam has operations in Kenya, Uganda and South Sudan; has interests in insurance, asset management, private equity, real estate and banking.
The firm is eyeing an entry into Mozambique, Malawi and Tanzania upon finalising the purchase of Real insurance later in the year.
