FML Holdings Limited posted a 75% decline in profit after tax to $1,1 million for the first quarter ended April 30 2014 compared to the same period last year weighed down by rising claims and finance costs.
BUSINESS REPORTER
Speaking at an annual general meeting on Tuesday, FML chief executive officer Douglas Hoto said claims had gone up to $21 million from $14,7 million in the same period last year. Hoto said claims are normally higher during the first quarter of the year but normalises in the second half.
Finance costs accelerated to $291 000 from $16 000 as the group suffered from high interest charges on loans.
“We hope to monitor expenses in the second half to increase profit and to make sure that collection from the clients were update,” he said.
Gross premium written went up by 14% to $38,2 million.
Net premium written went up by 20% to $35,4 million in the four months to April 2014 while total income stood at $37,8 million up by 20%.
Hoto, however, said tenants from the central business district were struggling to pay rentals while retail shops and office parks tenants were performing well.
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Total expenses increased by 17% to $36,8 million during the four-month period to April 30,2014. Total assets stood at $216,5 million in the four-month period up 6% from $205 million same period in April 2013.
Meanwhile, Tuesday’s AGM retained Oliver Mtasa as chairman for the group while shareholders also approved FML to buy back its outstanding shares.
