Kenya tyre maker Sameer Africa doubled its losses last year, with the management blaming its exit from the tyre production for the poor performance.
The Nairobi Stock Exchange-listed company is now operating on a negative working capital of Ksh134 million ($1.34 million), and incurred a net loss of Ksh1.06 billion ($10.6 million) last year compared with a net loss of Ksh529.32 million ($5.29 million) in 2018.
“The loss for the year significantly increased following a decision to exit from the tyre business leading to the impairment of the tyre business assets and accrual of staff redundancy costs,” the company said in a statement.
The company has announced its exit from the tyre manufacturing business citing difficult operating conditions for a turnaround, with total revenues for this year forecast to fall by a further Ksh1.49 billion ($14.9 million).
The board approved its exit from the tyre business in order to ring-fence the key profit units, reduce costs and capitalise on the rental segment of the business.
