Car & General quadruples dividend payout as profits rise

Car & General has traditionally been paying between Sh0.60 per share and Sh0.8 per share. [Courtesy]

Car & General has quadrupled shareholders’ dividends after net profit jumped three times in the financial year ended September 2021.

The firm, which deals in a range of power generation, engineering and automotive products, including motorcycles and tuk-tuks (three-wheelers) yesterday posted Sh887.24 million net profit, up from Sh274.13 million booked in 2020.

The Sh887.24 million net profit is the highest ever for the firm and dislodges the previous record of Sh315 million that had been set in the financial year ended September 2013.

Shareholders will on the back of this record performance enjoy Sh3.20 per share dividend amounting to Sh128.33 million - the highest distribution in the history of the firm.

The record payout will see Paul Wanderi Ndung’u - the single largest individual shareholder as of September 2020 - pocket Sh10.27 million for his eight per cent stake.

The dividend, which will be paid by March 24, is four times the Sh32.08 million that was paid in 2020.

Car & General has traditionally been paying between Sh0.60 per share and Sh0.8 per share. It skipped payouts in 2015 and 2016.

The Nairobi Securities Exchange-listed firm has sweetened the deal for investors by announcing the issue of one new fully paid-up bonus share for every one ordinary share held.

“Subject to receipt of the requisite approvals, shareholders will be credited with the bonus shares on Friday, April 8, 2022. The bonus shares will not be entitled to receive any dividend declared and approved for the year,” said Chief Executive Vijay Gidoomal.