Kina expects to hit K10mil profit mark

KINA Securities Limited (KSL) is expecting an underlying profit of K10 million and a statutory net profit after tax of K3 million for the half-year result to June.
It said on Friday that on a statutory basis, the group’s result reflected a one-off lease termination payment expense of K7 million net of tax.
It said the board had followed the required treatment under accounting standards in recognising the lease termination expense at this time.
The underlying profit result is consistent with KSL’s earning guidance provided on May 16 this year.
The company said the drop in earnings was largely attributed to lower income from foreign currency trading as a result of the withdrawal of Kina’s correspondent banking partner. There was a profit of K20.5 million in the corresponding six months to June last year, and K20.5 million in the half-year to last December.
The board had decided to pay an interim dividend based on the underlying profit for the first half of this year.
The one-off profit adjustment related to an agreement for the group to relocate to a new building Kina Haus.
The arrangement was entered into prior to Kina’s plans to list on the Australian Security Exchange.
The board took the decision to terminate the arrangement and for the group to remain in its present location, as a relocation no longer aligned with its future business direction or represented the best value for the company.