Report of the Directors
The directors submit their report and the audited financial statements for the year ended 31 December 2017, which disclose the state of affairs of the company and the group.
The principal activities of the group are that of providing automated clearing, delivery and settlement facilities in respect of transactions carried out at the Nairobi Securities Exchange and the holding of securities as nominees on behalf of investors.
During the year ending 31 December 2017, the total turnover of the group increased from Shs. 289,571,380 to Shs. 335,551,804. The profit before tax increased from Shs. 21,506,840 to Shs. 86,229,866.
As at 31 December 2017, the net current asset position of the group was Shs. 336,767,393 compared to Shs. 323,028,978 as at 31 December 2016.
Principal Risks and Uncertainties
As at 31 December 2017, the principal risk and uncertainty affecting the business was the delay in the implementation of the new CDS This is due to the many go-live dates that the company has set and missed.
The directors propose a final dividend of Shs. 6.85 per share (2016: Shs. Nil) amounting to a total of Shs.12,000,000 (2016: Shs. Nil).
The directors who held office during the year and to the date of this report are shown on page 3. In accordance with the group’s Articles of Association, no directors are due for retirement by rotation.
Statement as to Disclosure to the Company’s Auditor
With respect to each director at the time this report was approved:
- there is, so far as the person is aware, no relevant audit information of which the company’s auditor is unaware.
- the person has taken all the steps that the person ought to have taken as a director so as to be aware of any relevant audit information and to establish that the company’s auditor is aware of that information.
Terms of Appointment of the Auditor
PKF Kenya continues in office in accordance with the group’s Articles of Association and Section 719 of the Companies Act, 2015. The directors monitor the effectiveness, objectivity and independence of the auditor. The directors also approve the annual audit engagement contract which sets out the terms of the auditor’s appointment and the related fees.
COMPANY SECRETARY NAIROBI
29th March 2018