Kenyan car retailer CMC hit by higher costs and lost franchise

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The company, which is the subject of an 86 million US dollars takeover offer by Dubai’s Al Futtaim Group, blamed higher costs and staff expenses for the drop.

Sales costs rose 6 per cent to 9.78 billion shillings during the period, while an extra 85 million shillings went towards a backdated salary increase for staff and redundancy pay-outs after the loss of its Jaguar Land Rover franchise.

CMC distributes Ford, Suzuki and Volkswagen vehicles among other brands in the region.

Thanks to a 35 million shilling fall in CMC’s tax bill, earnings per share edged up to 0.19 shillings from 0.18 shillings.

The shares have been suspended from trading on the stock market while shareholders consider Al Futtaim’s takeover offer.