Car and General (K) Ltd — Mon, February 08 2010 myStocks!

29-Jan-10: Final Dividend: 0.67/= • Books close: 25-Feb-10 • Payment: 24-Mar-10

Car & General (Kenya) Limited through its subsidiaries is engaged in sales and service of power equipment, household goods, marine engines, motor cycles, motor cars, three-wheeler vehicles, commercial laundry equipment, commercial engines and general goods. The Company’s segments include Car & General (Trading) Limited, Car & General (Automotive) Limited, Car & General (Tanzania) Limited and Car & General (Uganda) Limited.

New Cargen House Lusaka Road P.O. Box 20001 Nairobi - 00200, Kenya +254-20-554500 (Phone)
+254-20-554668 (Fax)

Company website:
http://www.cargen.com/
Financial Information | Corporate History/Profile | Products/Services
Updated: Fri, November 21, 2008

Business Performance

The firm is a key player in the automotive & dealership industry specializing in diesel generators, motorcycles and three-wheelers. It is also a leading dealer in both Fiat and Alfa Romeo make of cars.

In 2005/06 C&G witnessed a 17.2% growth in turnover to KES 1.24 Billion with earnings declining by 30% to KES 6.09 per share. This downturn in profits may be attributed to an exceptional income item in the previous year that did not recur in 2005/06 resulting in a downward reversion in earnings growth. However, industry growth trends indicate reasonably good prospects for C&G as both motor cycle and 3-wheeler industry sales are up by approximately 50%. The growth in Car & General's Piaggio 3-wheelers is attributable to the growing presence of the 3-wheeler taxis especially in Nairobi and Mombasa albeit increased competition from cheap Chinese imports.

Future Prospects

Although C&G has witnessed rapid growth in the 2005/06 financial-year, this growth is bound to normalize in the medium-term in tandem with the slowdown in industry growth. However, the firm's motorcycle and 3-wheeler segment look poised to continue registering above average growth rates in the short run.