Listed agricultural firm Williamson Tea reported a 76 per cent jump in half-year results announced last week, helped by high international tea prices and a KSH144mn gain from the disposal of its head office building in Nairobi. The firm’s net profits grew to KSH805mn in the six months to September from KSH456mn in the first half of 2010. The firm sold its 50 per cent in Williamson House to Lion of Kenya Insurance, which jointly owned the office block. A sustained price rally of tea prices in the international markets and a weak local currency cushioned Williamson’s earnings for the first half of the year when production is thought to have taken a hit from a severe drought. The turnover rose marginally to KSH1.56bn from KSH1.51bn in the first half of 2010. “The Group’s performance for the six months was boosted by the favourable exchange rates and improved tea prices…the group realized the sale of its investment in Williamson House and gains realized are included,” said the firm in a statement last week. The company’s shares did not trade at the Nairobi Securities Exchange on Friday, remaining un-changed at Sh270. “Investors appeared to be digesting the earnings,” said analysts at Standard Investment Bank. The transaction price of the property sale was not apparent in the condensed half-year statement, but the proceeds exceeded the property’s book value by KSH144mn. Analysts contend that the return on the sale was attractive to warrant the disposal of its stake in the 11 storey building but questioned if the sale was informed by the capital gains only. “The gain realized from the sale is significant but it would be worth finding out why the company would sell its offices and opt to move to rented space,” said Renaldo D’Souza, a research analyst at Genghis Capital. Tea has enjoyed record prices in the international markets this year, as production from other countries such as Sri Lanka and India were affected by harsh weather – pushing the price on Kenya’s premium grades beyond KSH300 per kilo this year. Kenyan Tea is the priciest in the global markets because it is grown on highlands, making it ideal for blending with inferior produce from other countries. Earnings from the sale of tea were further lifted by the weakening shilling, which touched an historical low of KSH107 against the dollar in October. Tea export revenues are received mostly in dollars and Euros. Williamson Tea and Kapchorua Tea- its subsidiary, sell their tea in the international markets through UK-registered Ngong Tea Holdings, which is also the parent company. Net earnings for Kapchorua Tea more than doubled to KSH182mn, also helped by the lucrative tea production business and a revaluation gain on its tea bushes- which is however a non-cash gain for the shareholders.