Deacons released its FY12 earnings posting a KES 38m loss compared with a KES 112.65m profit in 2012, owing to flat sales and as well as increased operating expenses. Sales improved marginally by 2.7% to KES 2,487.78m despite opening 8 new stores towards the end of 2011. Management blamed the slow growth in sales to high inflationary pressures which reduced demand of its brands which are mostly high-end. Total operating costs rose by 31% y/y due to the impact of full year operations of the 8 new stores opened in 2011 which are yet to break even. Loss from discontinued operations was at KES 4.8m following completion of the closure of its Tanzanian operations. In 2011 management decided to close its stores in Tanzania which were not profitable since inception, though it continues to distribute its life fitness equipment to the hospitality industry. Early this year Deacons completed a deal to enter into a joint venture with Woolworth South Africa which had threatened to buy back its franchise which accounts for approximately 34% of deacons sales. The company could suffer from a decline in FY13 sales following the agreement. In addition to this the retailer has closed down one of its stores in Kampala which management indicates has been performing poorly. Deacons intends to open two new stores in Kenya, 2H13, at the new Thika road mall and introduce various new brands in its portfolio. Deacons retails clothing, homeware and fitness equipment. The company houses 7 franchises namely; Mr. Price, Woolworths, Truworths, Identity, Adidas, Baby shop and Life Fitness and operates approximately 31 stores in Kenya, Rwanda and Uganda. (Company Filing, Standard Investment Bank)

Innitially, delay in listing was said to be due to joint venture that needed to be concluded





Now again they say "Following the completion of the joint venture with Woolworths SA, the Directors have made the decision that the listing plans of the company should be deferred until further notice." >>> http://deacons.co.ke/site/images/10112358R.pdf

Truth be told, this company is now outrightly not attractive to the eyes of the general public. FY12 financial performance is poor and last year listing plan was a ploy to lure Wanjiku to buy a fattened cow. FY12 financial results have revealed the filthy skeletons in the cow and they certainly can’t lure any Wanjiku at this time. ….

@gathinga, et al, how has deacons been trading at OTC? share price, trend, liquidity, ...?

counter had a public offer in year 2010 at a price of KES 62.50. What is the experience of those in this counter?

Uchumi also opened a store in Dar TZ and a branch at Kampala Freedom city mall in retail if people are not buying clothes shows there is little disposable income and turnover growth will also be flat for uchumi which also opened a few new branches