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Centum Marathon
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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mwekez@ji wrote:Fair value gains on investment property to drive incomes. Am sure they have hired a “suitable” valuer this time round #FYR_Expectations These fair value gains within the P&L scare me because the properties may be sold at a lower value meaning they will have to take a loss in that year  I would prefer they use the historical cost method and only book gains after the properties are sold.. If they insist on recording fair value gains then they should only do it in the section of "Other comprehensive Income" Mark 12:29
Deuteronomy 4:16
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Centum home page talks of results to be released tomorrow at 7am >>> [url=http://centum.co.ke/]link[/url]
However, the "Centum Invite to Briefing Note" talks of the results being released tomorrow but at 3pm >>> [url=http://centum.co.ke/component/docman/doc_download/58-centum-invite-to-conference-call-on-5th-june-2013]link[/url]
#Confusion galore. 7am? 3pm? What time will it be?
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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... and any idea whether there will be a live stream link for the online community #Centum_FYR2012/13
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Rank: Chief Joined: 1/3/2007 Posts: 18,126 Location: Nairobi
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mwekez@ji wrote:This company issued KES 3B bond recently. Expect interest expense to depress earnings #FYR_Expectations Kwani? Unafikiri wanaweka chapaa ndani ya godoro?  The cash was probably deployed into T-Bills & T-Bonds which means a % of recovery of interest vs what they paid on the Bond. Not to mention reduce/pay-off (pricey) short-term loans & saving interest. Centum also bought a MFI which could have lent out some of this cash at crazy high rates. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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VituVingiSana wrote:mwekez@ji wrote:This company issued KES 3B bond recently. Expect interest expense to depress earnings #FYR_Expectations Kwani? Unafikiri wanaweka chapaa ndani ya godoro? The cash was probably deployed into T-Bills & T-Bonds which means a % of recovery of interest vs what they paid on the Bond. Not to mention reduce/pay-off (pricey) short-term loans & saving interest. Centum also bought a MFI which could have lent out some of this cash at crazy high rates. that doesnt stop the interest expense from depressing earnings. .... as to the impact of the bond on the top line, i await to see tomorrow. you seem to indicate there will be no lag on its impact on the top line
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Rank: Chief Joined: 1/3/2007 Posts: 18,126 Location: Nairobi
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mwekez@ji wrote:VituVingiSana wrote:mwekez@ji wrote:This company issued KES 3B bond recently. Expect interest expense to depress earnings #FYR_Expectations Kwani? Unafikiri wanaweka chapaa ndani ya godoro? The cash was probably deployed into T-Bills & T-Bonds which means a % of recovery of interest vs what they paid on the Bond. Not to mention reduce/pay-off (pricey) short-term loans & saving interest. Centum also bought a MFI which could have lent out some of this cash at crazy high rates. that doesnt stop the interest expense from depressing earnings. .... as to the impact of the bond on the top line, i await to see tomorrow. you seem to indicate there will be no lag on its impact on the top line I think they would have either: 1) Planned beforehand to deploy the cash swiftly to 'neutralize' the interest cost. This includes short-term loans to their subsidiaries, pay off overdrafts, vendors, etc. 2) Invested the cash into GoK or Corporate Securities/Bonds as well as shares [note the NSE has jumped quite a bit since the Bond was issued] When I add the potential gains from 1+2 ... I think they will be a-OK. There will be a net cost i.e. funds sunk into Real Estate whose pay-off will come in 2-3 years but that is acceptable. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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VituVingiSana wrote:mwekez@ji wrote:VituVingiSana wrote:mwekez@ji wrote:This company issued KES 3B bond recently. Expect interest expense to depress earnings #FYR_Expectations Kwani? Unafikiri wanaweka chapaa ndani ya godoro? The cash was probably deployed into T-Bills & T-Bonds which means a % of recovery of interest vs what they paid on the Bond. Not to mention reduce/pay-off (pricey) short-term loans & saving interest. Centum also bought a MFI which could have lent out some of this cash at crazy high rates. that doesnt stop the interest expense from depressing earnings. .... as to the impact of the bond on the top line, i await to see tomorrow. you seem to indicate there will be no lag on its impact on the top line I think they would have either: 1) Planned beforehand to deploy the cash swiftly to 'neutralize' the interest cost. This includes short-term loans to their subsidiaries, pay off overdrafts, vendors, etc. 2) Invested the cash into GoK or Corporate Securities/Bonds as well as shares [note the NSE has jumped quite a bit since the Bond was issued] When I add the potential gains from 1+2 ... I think they will be a-OK. There will be a net cost i.e. funds sunk into Real Estate whose pay-off will come in 2-3 years but that is acceptable. Partially agreed chief @VVS. I note last year, short term loans were granted at 22% while long term loans at 20%. The bond is well priced at 13.50% for the Senior Unsecured Fixed Rate Notes and 12.75% for the Senior Unsecured Equity Linked Notes
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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@VVS, notice purpose of the bond read:
The proceeds of the Notes will be used for investment in:
• PE opportunities.
• RE&I opportunities.
In the event the Greenshoe Option is exercised, the additional amounts raised under the Greenshoe Option will be used to repay existing bank debt.
Note Greenshoe Option was not exercised so repayment of existing bank debt could not be done
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Rank: Chief Joined: 1/3/2007 Posts: 18,126 Location: Nairobi
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mwekez@ji wrote:@VVS, notice purpose of the bond read:
The proceeds of the Notes will be used for investment in:
• PE opportunities.
• RE&I opportunities.
In the event the Greenshoe Option is exercised, the additional amounts raised under the Greenshoe Option will be used to repay existing bank debt.
Note Greenshoe Option was not exercised so repayment of existing bank debt could not be done Well, in the short-term, that will happen! Probably not to repay long-term debt but definitely short-term debt including Overdrafts. It's the same dish whether you take some rice then dip it in the mchuzi or you take a spoonful of mchuzi & add it to the rice ;-) More good news is that interest rates have fallen from the 22% to the 18% level. I hope that helps Centum as well. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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VituVingiSana wrote:mwekez@ji wrote:@VVS, notice purpose of the bond read:
The proceeds of the Notes will be used for investment in:
• PE opportunities.
• RE&I opportunities.
In the event the Greenshoe Option is exercised, the additional amounts raised under the Greenshoe Option will be used to repay existing bank debt.
Note Greenshoe Option was not exercised so repayment of existing bank debt could not be done Well, in the short-term, that will happen! Probably not to repay long-term debt but definitely short-term debt including Overdrafts. It's the same dish whether you take some rice then dip it in the mchuzi or you take a spoonful of mchuzi & add it to the rice ;-) More good news is that interest rates have fallen from the 22% to the 18% level. I hope that helps Centum as well. ................ ;-)
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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mwekez@ji wrote:Centum home page talks of results to be released tomorrow at 7am >>> [url=http://centum.co.ke/]link[/url]
However, the "Centum Invite to Briefing Note" talks of the results being released tomorrow but at 3pm >>> [url=http://centum.co.ke/component/docman/doc_download/58-centum-invite-to-conference-call-on-5th-june-2013]link[/url]
#Confusion galore. 7am? 3pm? What time will it be? 7am it is
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Rank: Elder Joined: 8/16/2011 Posts: 2,297
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mwekez@ji wrote:Centum home page talks of results to be released tomorrow at 7am >>> [url=http://centum.co.ke/]link[/url]
However, the "Centum Invite to Briefing Note" talks of the results being released tomorrow but at 3pm >>> [url=http://centum.co.ke/component/docman/doc_download/58-centum-invite-to-conference-call-on-5th-june-2013]link[/url]
#Confusion galore. 7am? 3pm? What time will it be? Agreeing in their office briefs at 7-9am and posting the records to other officials entities (CMA, NSE,CDSC,PS, etc) at 3PM is most likely scenario. Expect 1:10 or Zero or 80cts per share. 
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Rank: Elder Joined: 8/16/2011 Posts: 2,297
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mwekez@ji wrote:Realtreaty wrote:Hehheeeee life like that!!!! Centum Investment Company has ventured into fund management business after receiving a licence to open a new asset management subsidiary. Centum Asset Managers Limited (CAM) will start off managing a portfolio of Sh6 billion, the firm said on Monday in a statement  >How profitable is Asset Management? Net profit margin figures are welcomed >Centum has been having a portfolio of assets under management. How different is that from what they are now talking about? It is like having a Jersey cow for five years that you sell milk from, then use the proceeds to buy a Fresian cow to pour more milk and keep the two!
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Realtreaty wrote:mwekez@ji wrote:Realtreaty wrote:Hehheeeee life like that!!!! Centum Investment Company has ventured into fund management business after receiving a licence to open a new asset management subsidiary. Centum Asset Managers Limited (CAM) will start off managing a portfolio of Sh6 billion, the firm said on Monday in a statement >How profitable is Asset Management? Net profit margin figures are welcomed >Centum has been having a portfolio of assets under management. How different is that from what they are now talking about? It is like having a Jersey cow for five years that you sell milk from, then use the proceeds to buy a Fresian cow to pour more milk and keep the two! So these are similar business lines. Why operate them as two rather than one?
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Rank: Elder Joined: 8/16/2011 Posts: 2,297
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mwekez@ji wrote:Realtreaty wrote:mwekez@ji wrote:Realtreaty wrote:Hehheeeee life like that!!!! Centum Investment Company has ventured into fund management business after receiving a licence to open a new asset management subsidiary. Centum Asset Managers Limited (CAM) will start off managing a portfolio of Sh6 billion, the firm said on Monday in a statement >How profitable is Asset Management? Net profit margin figures are welcomed >Centum has been having a portfolio of assets under management. How different is that from what they are now talking about? It is like having a Jersey cow for five years that you sell milk from, then use the proceeds to buy a Fresian cow to pour more milk and keep the two! So these are similar business lines. Why operate them as two rather than one? Yes, expansion does not only mean going to another country but also starting another line of production without disturbing the existing lines with the same aim.......see when paka ready bought flamingo industries, or Sameer Africa aka Yana brought in sameer business park and soon the Re-tread business. Coop bank with the kingdom securities etc
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