Luxury fashion brand Deacons East Africa has recorded a pre-tax loss of 70.1 Million Half year results ended June 2016 compared to 71.6 Million in 2015.
The brand generated revenue of 1.03 billion shillings compared to 949 million shillings last year.
A revenue growth of 8 percent was recorded in the first half of 2016 over the same period in 2015 driven by the Uganda operations and the launch of two stores in Nairobi.
Read: Deacons Records 73 percent Jump in Profit After Tax driven by Growth in Sales
The Directors have not recommended the payment of an interim dividend.
The new entrant at the Nairobi Stock Exchange has issued 123,558,228 shares, equivalent to 99.96 per cent of its total authorised share capital of 123,600,000, leaving only 41,772 shares unalloted to shareholders. At the current price of KES 15 a share that would only amount to Sh627 million in values.
Read: Deacons Eyes Middle Class for Regional Expansion
“The Group is confident about revenue growth in H2 2016,following the revision of prices with the Mr. Price Brands, good summer stock levels and increasing trade at the new stores,” says the firm.
Read: Deacons Opens Reebok and Bossini Store at the Hub in Karen
“In addition to a positive outlook for the second half of the year from existing stores and the new developments expected to open in the last quarter of the year, the Group is pleased to announce that it will be adding a new brand to its existing stable of 10 brands by the year end.”
It plans to use the rise of the middle class and e-commerce to expand its market by 2020. Deacons has franchises for a number of South African brands, including Mr Price, Truworths, Woolworths, Identity, Sheet Street, 4u2,BabyShop, Angelo, Reebok, Adidas, Lifeftness and Bossini.