Jun-08 Jun-09 Change
Sh - Mill Sh - Mill %
Turnover 6,792 8,323 23
Op. profit 275 330 20
PBT 106 170 60
PAT 95 421 343
EPS 0.53 2.34 342

....any way; there is still the small matter of the one billion shilling NEGATIVE reserve sitting in the balance sheet...

If the term loans and debentures are converted into ordinary shares, there might be hope for this company...that's the financing side of the equation...

On the business front, I hope the management will do some cleaning up of the company's image. Most the branches have started looking dingy and in that shape they cannot compete with Tuskys and Nakumatt.

Thus I am happy to see that the receivers have put into gear their exit plans...then the company can revert back to some business minded directors....hopefully.

So; where did this Ciano guy come from? And how does he pronounce his name - "Chiano" or "Siano"?

@VVS; I know he was at KPLC, what I meant was: where was he when Uchumi was going down the drain?

Don't want to rain on the parade...
I got stuck with some Uchumi shares and I shop at Uchumi [generally try to own shares for companies I patronise].

But it's getting very very difficult. The supermarkets are like markets, aisles divided into two, floors not very clean, save maybe for Uchumi Langata. Then we know Receivers in Kenya, do they ever give up their job? And their solidly in their no3 position from no1 - was surprised to learn Nakumatt never reported a profit until their collapse.

Okay at least their now operating positively but if shares were trading now, would you buy this share? That's the test.

@Gordon Gekko;
most likely re-listing in first half of 2010.

Sh18....is possible...translates to a P/E of 7.7 which isn't bad for a company that has been in the cold all these years.

But when you remove the sh250m tax credit, the EPS drops to sh0.94 and the P/E at sh18 now becomes 19....very high for this market, let alone Uchumi!

My guess is that you will probably get buyers at sh10

A company being placed under receivership in Kenya is akin to pronouncing its death-sentence. Look around the carcasses littering the kenyan corporate landscape and you begin to appreciate this perception. Far too many companies have failed to recover from the receiver's scapel as the 'radical surgery' tries to rid it of its corporate fat, streamline and re-engineer its operations to yank it from red ink. Recovery rate is dismally low, because most receivers are only interested in their monthly emoluments which are astronomical and actually end up haemorrhaging the company that is at that moment still in ICU. Plus they must also be paid whether or not the co. is profitable, and asset-stripping is common to pay off 'lenders/ debenture-holders.'

That Uchumi may emerge from receivership will therefore be a milestone not very common on the kenya corporate landscape. Of course it helps your cause if the govt of the day is on your side. Mukiha, u r right: the debt-to-equity conversion will be the company's lifeline, as will be improving the ambience and appeal of their stores. Uchumi back to black ink, re-listed and grossing profits would be a big coup for Ciano.
BTW, why shouldn't he come back to Uchumi now wearing the CEO cap - after all he's proved very instrumental in the company's turnaround and this shows he is sufficiently business-minded and able to deal with the numerous stakeholders (suppliers, general creditors, lenders, govt, customers,etc)efficiently?

If this Ciano is running a dirty market-like supermarket, what good is he? Uchumi was brought down by plain robbery. Uchumi needs much better management than we are seeing now. In my opinion if this chain continues under govt interference it will imminently collapse. Sell your shares at whatever you get.

Uchumi supermarkets are the dirtiest shops to ever walk in. Visit Jogoo Rd, Agakan Walk, Meru branch etc and you will think they are big "kiosks", very filthy, dirty, goods thrown all over.............. in fact the only uchumi worth the name is the one on Langata road and Capital Centre on mombasa road. Seriously, ukwala shops were once the dirtiest but they are now much better than these Ciano Kiosks. Ole wao shareholders!

Ciano was working from a tough script.

- No cash (cleaned out by kirubi & his cronies)
- Low stocks (suppliers refused to deliver goods)
- Pathetic stores (old & let to decay by kirubi & co)
- Low morale (employees did not care coz they were a few days from losing their jobs)

Ciano amejaribu...

@GG @ sage - Delivery costs? I doubt the margins that Uchumi has allows for free delivery... so how many Kenyans can afford to pay for delivery...

That said... look at Amazon... someone has to take the first step!

BTW, the mama mbogas are sorta the 'shop at home' vendors!