The listed mining and cement company, Athi River Mining, registered a 35% gain in pre-tax profits from Ksh705 mn (US$9.2 mn) to Ksh949 mn (US$12.3 mn) for the year ended 31st December 2009. The better operating performance was attributed to operating efficiencies; however, the company's top-line growth made good contributions despite the operating challenges that included the drought in Kenya as well as other economic conditions globally. The management took a aggressive and proactive stance to protect and grow business and this resulted in group turnover rose 11% during the period from Ksh4.6 bn (US$60 mn) to Ksh5.1 bn (US$67 mn). The realized cost efficiencies raised the profit margin by 3.1% to 18.4%; however, the net margin only rose 1.7% to 12.6% due to increased tax payments.

During the period the company revalued its fixed assets and continued to invest in increased cement capacity. The management believes that 2010 performance will be pegged on the new production capacity expected to be brought online in the second half of 2010 and continued growth in the construction sector within the East African region. The real estate sector in Kenya was extremely vibrant in 2009 in both the residential and non-residential space with domestic loans to the real estate sector up 56% y-o-y to December 2009. According to the statistics bureau cement consumption in Kenya in 2009 rose 20.9% to 2,665,769 metric tonnes versus a 5.9% growth in cement production at 2,995,979 metric tonnes. The high cost of electricity will continue to play a big role in determining cement prices and production, but the high rate of cement consumption in the region augurs well for cement companies.

The company's EPS rose by 28% from Ksh5.08 in 2008 to Ksh6.52 in 2009 and the company announced an first and final dividend of Kshs1.50. The dividend will be paid to shareholders in July 2010 and will be paid to shareholders on the register at the close of business on 25th May, 2010. The Annual General Meeting of the Company will be held at Crystal Ballroom, Laico Regency Hotel, Nairobi on Tuesday, 22nd June, 2010 at 11:30 am. As at the 12th March, 2010, the company had a market value of Ksh10.4 bn (US$135 mn), a dividend cover of 4.3 times, a trailing PE ratio of 16.1x, trailing PEG ratio of 0.6x and a trailing PBV of 2.5x.