Sec­ond East African Ca­bles CEO re­signs in two years

Move comes amid drop in com­pany’s half-year earn­ings

Business Daily (Kenya) - - CORPORATE NEWS - Vic­tor Juma­tion­

East African Ca­bles’ chief ex­ec­u­tive Peter Arina has re­signed from the com­pany, mark­ing the sec­ond such de­par­ture from the cor­ner of­fice in two years.

Mr Arina’s exit co­in­cided with a de­te­ri­o­ra­tion in the firm’s per­for­mance in the half-year ended June when sales, earn­ings and share­holder funds all dropped by dou­ble to triple dig­its.

He was ap­pointed CEO in Oc­to­ber 2015 to re­place George Mwangi who had re­signed a

month ear­lier to launch his start-up milk firm, Coun­try­side Dairy. “That the res­ig­na­tion of Peter Arina as the chief ex­ec­u­tive of­fi­cer of the com­pany with ef­fect from Au­gust 31, 2017 be and is hereby ac­cepted,” EA Ca­bles said in a state­ment re­leased yes­ter­day. The ca­bles man­u­fac­turer added that Paul Muigai —who has been the chief op­er­at­ing of­fi­cer— has been ap­pointed the act­ing CEO ef­fec­tive Tues­day (Au­gust 28).

Mr Arina, who had ear­lier left Sa­fari­com as the chief com­mer­cial of­fi­cer in 2014, re­signed as the ca­ble man­u­fac­turer’s net loss widened 7.4 times to Sh232.4 mil­lion in the

half-year ended June.

The per­for­mance came on the back of a 30 per cent sales plunge to Sh1.4 bil­lion, which the com­pany blamed on its in­abil­ity to ful­fil or­ders from ran­dom cus­tomers. “The non-con­tracted busi­ness seg­ment ex­pe­ri­enced a 30 per cent drop in rev­enues ham­pered greatly by con­tin­ued con­straint in ac­cess­ing work­ing cap­i­tal lines,” the com­pany said.

“The heavy cap­i­tal in­vest­ment that re­sulted in tripling of in­stalled ca­pac­ity led to greater need for work­ing cap­i­tal fi­nanc­ing but ac­cess to credit lines was af­fected by re­duced lend­ing ap­petite fol­low­ing the in­tro­duc­tion of in­ter­est rate caps.”

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