NATIONAL Investments Company (NICOL) has posted a pretax profit increase by 29 6 per cent to 4 .18 bn\/- backed by other income that recorded a drastic jump last year.<\/p>\n
The group results were boosted by other income, which recorded a drastic jump by 2,243 per cent increase to 4 .24 bn\/- from last year from merely 18 1m\/- recorded in previous year.<\/p>\n
However, the year-on-year increase in profit before tax was before accounting for changes in the fair value of listed shares held.<\/p>\n
Tanzania Securities that analysed NICOL financial statement said the main reason for the increase in profit was a jump in other income.<\/p>\n
NICOL recorded improved profitability in 2018 , whereas its investments in securities depreciated in value by 14 per cent.<\/p>\n
It remains unclear whether this income source\/magnitude is sustainable, Tanzania Securities said in a statement issued over the weekend.<\/p>\n
The future performance of NICOL is directly related to the performance of its investments, most of which are companies listed on the Dar es Salaam Stock Exchange (DSE).<\/p>\n
Tanzania Securities said it should be noted that in a portfolio of 8 4 bn\/- worth of shares listed on the DSE, NMB constitutes about 9 1 per cent at 7 7 bn\/-.<\/p>\n
This poses a big risk because if NMB shares fall in price, the impact will be felt directly by NICOL, Tanzania Securities said and called for diversification strategies.<\/p>\n
Further, the stock brokerage firm said the mutual fund, NICOL itself, accounted for 1.26bn\/- which was 30 per cent of the other income, the rest being attributable to the subsidiaries.<\/p>\n
Investment income which is the main source of income for the company decreased by 34 per cent to 1.35bn\/-, the statement showed.
\nThe net change in fair value of investments recorded a loss of 13.63bn\/- leading to a total comprehensive loss of 9 .5 2bn\/- from a profit of 1.8 6bn\/-.<\/p>\n
Thus, before providing for the loss in fair value of investments, earnings per share increased by 145 per cent to 8 1\/-
\nfrom 33\/-.<\/p>\n","protected":false},"excerpt":{"rendered":"
NATIONAL Investments Company (NICOL) has posted a pretax profit increase by 29 6 per cent to 4 .18 bn\/- backed by other income that recorded a drastic jump last year. The group results were boosted by other income, which recorded a drastic jump by 2,243 per cent increase to 4 .24 bn\/- from last year […]<\/p>\n","protected":false},"author":84,"featured_media":556,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[482,483,481],"class_list":["post-555","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-nicol","tag-nmb","tag-surges"],"yoast_head":"\n