Britam Holdings Limited has issued a profit warning for the fourth quarter 2017, becoming the twelveth publicly listed firm to anticipate a significant decline of profits by at least 25 per cent.
Britam Holdings Limited, previously known by as British-American Investments Company, is a diversified financial services group and is listed on the Nairobi Securities Exchange. The group offers a wide range of financial products and services in insurance, asset management, property, and banking in the African Great Lakes region. The group employs hundreds of Kenyans.
According to financial experts, a profit warning is an open declaration issued by a listed company to investors through a stock exchange. It warns investors that the profit of the company in the coming quarter will significantly decline when compared with that of the same quarter of previous year, or the company may even make a loss.
Other Kenyans firms that have announced profit warnings recently include, Housing Finance, Standard Chartered Bank, Family Bank, Deacons, Bamburi Cement, Mumias Sugar, BOC Group, Nairobi Business Ventures, Unga Group, and Flame Tree Group Holdings.
With a dozen bluechip firms queuing up to warn shareholders on reduced revenues in 2018, it would be fair to assume that 2017 as a whole will be one of the worst years of economic performance with mass layoffs, perhaps fold-ups, to be expected in 2018. The development also means the government will collect less taxes.
According to data from the Kenya National Bureau of Statistics, Kenya’s economy expanded by a paltry 4.4 per cent in the third quarter of 2017 its lowest growth in five years.