The K-Shoe shop along Kenyatta Avenue in Nairobi. FILE PHOTO | SALATON NJAU | NMG
Shoe and leather accessories vendor, Nairobi Business Ventures (NBV) Ltd
, has issued a profit warning attributed to delay in securing additional funds to finance its working capital requirements.
The
firm’s board of directors on Monday said earnings for the financial
year ended March 2017 are expected to dip by more than 25 per cent of
what was reported for the same period in 2016.
“The
company registered strong top line growth with improved quality of
business in most of the revenue lines in the first half of the financial
year 2016/2017. However, there has been a delay in securing additional
capital to finance the company’s working capital requirements,” the
board said in a statement.
“The second half of the
year witnessed low sales volumes as a result of subdued consumer
spending even during the festive season,” it added.
NSE listing
Last year, the firm got listed on the Nairobi bourse under the Growth Enterprise Market Segment (GEMS).
Prior to its listing, the Nairobi Securities Exchange (NSE)
,
Capital Markets Authority (CMA) and the nominated advisers CBA Capital
had insisted on a more thorough scrutiny of the company’s corporate
governance, financial performance and expansion plans.
The firm's board said it is taking steps to ensure it gets the funds required improve the retailer's future performance.
NBV
operates six outlets in Nairobi – two in the CBD and one each at
Village Market, T-Mall, Capital Centre and Ongata Rongai - under the
K-Shoe brand.
It targets the upper middle class market.
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