KEY HIGHLIGHTS OF UAP AGM
Started with the Chairman thanking the exiting directors representing (Abraaj, AfricInvest, Swedfund, Centum and C Kirubi) for work well done.
The focus going forward
Focus on consolidating and growing the 12 subsidiaries. The non-Kenyan operations contributed 45% of gross profit which was a massive improvement. Of note is the breaking even of the Tanzanian subsidiary.
Diversification: It to property development: South Sudan, Kenya, Uganda
Investment management (3% of total gross income)
Enhanced customer experience and brand visibility : Website and Ndakaini Marathon
NAV if the share is Ksh 81
BUSINESS OUTLOOK IS PROMISING DUE TO:
Strong economic growth in Africa
Growing middle class with increased income
Partnership with an experienced partner (UAP)……marriage made in heaven.
SHAREHOLDER QUESTIONS AND CONCERNS
i) Q – Concern on Huge Increase in fair value gains. A—The management is extremely careful on that and it is done by a reputable firm Knight Frank. To highlight further: There was significant developments between Jan 2014-Dec 2014 of UAP tower (33 storey) in Nairobi, UAP equatorial tower (15 storey) and UAP heights in South Sudan and UAP Nakawa in Uganda which were developed during 2014 financial year. There is also increased valuation and rent for existing properties including Equity centre, Telkom plaza etc.
ii) Q---re-branding after old mutual acquisition. A---- Experts will be engaged to look into modalities of merging the two businesses and ultimately one name.
iii) Q---Listing at the NSE. A------The chairman gave a commitment that listing will happen as promised during the placement offer. This will happen after finalization of the merger of the two businesses. Old mutual also support the merger. Prodded further he suggested 2017 has a sufficient timeline. The group has also an advantage of Peter Mwangi the former NSE CEO joining the board as a representative of Old Mutual.
iv) Q- payment of dividends via EFT instead of Cheque. A--- Agreed. The books close on 22.06.2015 and payment will be two weeks later. Registrar had set up a desk to facilitate that exercise.
v) Q—Why change auditors A---- There is a need for a fresh set of eyes since PWC has been auditing the books since inception.
History will not remember you for your IQ. It will remember you for what you did. “Genius is 1 percent inspiration, 99 percent perspiration.” Thomas Edison