The Shareholders of City Group Company, the owner and operator of the Kuwaiti public transport brand City Bus, approved the issuance of a 15% stock dividend (3 shares for every 20 shares) during the Company’s annual shareholder meeting held today. City Group registered KD 12.7 million in revenues for 2009, up 7% from the previous year, and a net profit of KD 3 million, up 9% from the previous year, at an earning of 30 fils per share.
The board also discussed the Company’s 2009 financial results and achievements as well as the company’s strategic outlook for 2010 and years to come.
Chairman Yacoub Al Sharhan said, “Despite difficult economic conditions the company managed to maintain the level of profits at the same level that of 2008 while successfully concluding an ambitious fleet modernization program by the introduction of 175 new buses, ultimately improving reliability, consistency and comfort level of services to customers.”
The Kuwait-based company owns three fully owned subsidiaries and they are Boodai Aviation Agency, Boodai Aviation Company and The Transport & Warehousing Real Estate Group CO.: and the Public Transport Division “City Bus”, the biggest of the four and the largest contributor to the Company’s bottom line. City Bus currently owns a fleet of over 520 vehicles operating on routes across Kuwait and on charter contracts.
2009 milestones: • Introduction of 175 brand new buses to City Bus’ operations as part of the fleet modernization program• Negotiating favorable financing terms for purchase of fleet with substantial cost savings and greater access to liquidity • Constructing state-of-the–art engineering facility for maintenance of buses• Implementation of effective technology solutions in public transport and warehousing operations• Transporting over 33 million passengers
Al Sharhan said, “We entered 2009 in a time of crisis, and closed the year with a profit, strong consumer brands, and an even stronger financial base.”
“Looking forward, we have embarked on an ambitious program of expanding our public transport business outside Kuwait into other parts of the MENA region. We have entered into a definitive agreement to invest in a public transport company listed on Amman Stock Exchange. Other opportunities are being explored in other countries in the region as well, to turn the City Bus brand from a Kuwait-based one into a Middle East brand that is respected and recognized by tens of millions of people with sustainable results to shareholders.”