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Williamson Tea FY14 Loss of Ksh 228Mn
Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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 Linked filePesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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Board proposes a MASSIVE dividend of Ksh 40 Per ShareQuote:The Board recommends a final dividend payment of Kshs.40 per share funded by reserves. The current very uncertain position concerning the Group's Land Titles as 99 year leases and no immediate major capital undertaking leads the Board to believe it is prudent to distribute this money to Shareholders now.
The recommended Final Dividend subject to approval will accrue to Members on the register at the close of business on 30th June 2015,and therefore the register will remain closed from 1st July to 3rd July 2015,both days inclusive. Pesa Nane plans to be shilingi when he grows up.
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Rank: Chief Joined: 1/3/2007 Posts: 18,224 Location: Nairobi
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The problem with our half-baked constitution is the multiple ambiguities in it. We didn't have a clear-cut date [period] for elections, no clarity as to the term of Land Leases [as it 99 years from 2010 or from the original date of the lease], etc... So as much as the dividend is great, WTK isn't planting new tea and that hurts performance in future years if the leases are 99 years from 2010. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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Board further proposes a MASSIVE 1:1 BonusQuote:Special Business:
To consider if thought fit to pass the following resolutions as ordinary (special?) resolutions:
I. "That the authorised share capital of the Company be increased from shillings eighty seven million five hundred sixty three thousand three hundred twenty (Shs.87,563,320) divided into seventeen million five hundred twelve thousand six hundred forty (17,512,640) ordinary shares of shillings five(shs.5) each to one hundred and nine million four hundred fifty four thousand (109,454,000) divided into twenty one million eight hundred ninety thousand eight hundred (21.890,800) ordinary shares of shillings five (shs.5) each by the creation of four million three hundred seventy eight thousand one hundred sixty (4,378,160) ordinary shares of shillings five (shs.5) each to rank pari passu with the existing ordinary shares of the Company in all respects.
II. "That in pursuance to Article 135 of the Company's Articles of Association and subject to the Shareholders and Capital Markets Authority's approval,it is desirable to capitalise the sum of forty three million seven hundred eighty one thousand six hundred (shs.43,781,600) being part of the amount outstanding to the credit of the revenue reserve of the company and the sum be applied in making payment in full at par for eight million seven hundred fifty six thousand three hundred twenty new shares of shillings five (shs.5) each in the capital of the Company, such shares to be distributed as fully paid among the persons who were registered as Shareholders of the Company at the close of business on a day to be fixed by the company at a rate of one fully paid share for every one ordinary share of the Company held by such holders, such fully paid shares to rank pari passu with existing issued shares." Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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AGM NoticeQuote:NOTICE IS HEREBY GIVEN that the SIXTY FIFTH ANNUAL GENERAL MEETING of the Shareholders will be held at the Nairobi Club, Ngong Road, on Thursday 16 July 2015 at 10.00 a.m Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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Same script for Kapchorua Loss Ksh 23 Million Div Ksh 5.00 Bonus 1:1 Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Counter gains +30.xy 14,500 shares changed hands "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Veteran Joined: 6/17/2009 Posts: 1,621
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VituVingiSana wrote:The problem with our half-baked constitution is the multiple ambiguities in it. We didn't have a clear-cut date [period] for elections, no clarity as to the term of Land Leases [as it 99 years from 2010 or from the original date of the lease], etc...
So as much as the dividend is great, WTK isn't planting new tea and that hurts performance in future years if the leases are 99 years from 2010. The future may be uncertain but that dividend will not hurt the pocket at all.Still holding some 'free' shares here.
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Rank: Member Joined: 1/4/2015 Posts: 153
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Grateful I hold a few.. But I honestly feel the big boys who made these decisions are the ones who will profit most..!! As much as I would want this share to grow (and it's baby Kapchorua) our government is all in to screw companies like WTK..SAD..!! Satchu and crew will laughing straight to the bank..!! Good time to make money of this stock on sale or even on dividend.Enjoy and Cheersto fellow wazuans who were on this flight..!! Dreams are not the thing you see in your sleep..it's the thing that doesn't let you sleep. - A.P.J. Abdul Kalam
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Rank: Chief Joined: 1/3/2007 Posts: 18,224 Location: Nairobi
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Historically 400/- for Williamson seems high BUT: EPS was postive in a bad [low tea prices & low production due to dry conditions] year thanks to Forward Sales in 2014-15. In 2015-16, the Forward Sales will hurt USD earnings but they will contribute to profits. A weaker KES will magnify the profits. I don't know what % of sales are sold forward or at what prices. One major advantage is lower diesel/fuel prices for the factories. Nevertheless, Williamson has invested heavily in its factories [Cashflow Statement 2015 + Annual Report 2015] to process outgrower leaf. If Williamson can leverage the factory's production capacity it can make marginal (variable) profits which add cash profits to the bottomline. Does Williamson buy leaf, process it and sell it under their name making money across the value chain? Does Williamson simply process leaf into made tea for a fee? [The made tea is sold by the farmers directly] 2013 Cash Earnings: 80/Share (Dividend 7/50) 2014 Cash Earnings: 55/Share (Dividend 7/-) 2015 Cash Earnings: 11/Share (Dividend 40/-) A good 2015-16 [or so I think] should allow for Williamson to pay another good dividend since Williamson has no significant debt & can earn 10+% in interest income from T-Bills. I am looking at Williamson as a long-term Dividend Stock [despite the droughts or vagaries of the tea prices] as the firm has eliminated the crippling debt it took on to build (sold) Williamson House. For those who know the farms [Changoi, Kapchorua, Tinderet & Kaimosi] do you think these can be sold off as a whole? Sub-divided and sold off? Price per acre in the area? The book NAV is 750/share and that includes 300/- in cash [or near cash & receivables] The largest liability is Deferred Taxation which only comes into play when the (revalued) assets are sold. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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VituVingiSana wrote:For those who know the farms [Changoi, Kapchorua, Tinderet & Kaimosi] do you think these can be sold off as a whole? Sub-divided and sold off? Price per acre in the area?
The book NAV is 750/share and that includes 300/- in cash [or near cash & receivables]
The largest liability is Deferred Taxation which only comes into play when the (revalued) assets are sold. The board is unsure whether the company still owns the land its farms sit on given the new laws on foreign ownership of land. Mark 12:29
Deuteronomy 4:16
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Rank: Member Joined: 1/4/2015 Posts: 153
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any idea on dividend payment date guys? Dreams are not the thing you see in your sleep..it's the thing that doesn't let you sleep. - A.P.J. Abdul Kalam
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Rank: Chief Joined: 1/3/2007 Posts: 18,224 Location: Nairobi
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guru267 wrote:VituVingiSana wrote:For those who know the farms [Changoi, Kapchorua, Tinderet & Kaimosi] do you think these can be sold off as a whole? Sub-divided and sold off? Price per acre in the area?
The book NAV is 750/share and that includes 300/- in cash [or near cash & receivables]
The largest liability is Deferred Taxation which only comes into play when the (revalued) assets are sold. The board is unsure whether the company still owns the land its farms sit on given the new laws on foreign ownership of land. Please show me where the board of the company has stated it is unsure whether it still owns the land its farms sit on given the new laws on foreign ownership of land? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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VituVingiSana wrote:guru267 wrote:VituVingiSana wrote:For those who know the farms [Changoi, Kapchorua, Tinderet & Kaimosi] do you think these can be sold off as a whole? Sub-divided and sold off? Price per acre in the area?
The book NAV is 750/share and that includes 300/- in cash [or near cash & receivables]
The largest liability is Deferred Taxation which only comes into play when the (revalued) assets are sold. The board is unsure whether the company still owns the land its farms sit on given the new laws on foreign ownership of land. Please show me where the board of the company has stated it is unsure whether it still owns the land its farms sit on given the new laws on foreign ownership of land? Quoted from the Dividend Notice appended to the FY Results Quote:The current very uncertain position concerning the Group's Land Titles as 99 year leases.... Pesa Nane plans to be shilingi when he grows up.
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Rank: Chief Joined: 1/3/2007 Posts: 18,224 Location: Nairobi
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Pesa Nane wrote:VituVingiSana wrote:guru267 wrote:VituVingiSana wrote:For those who know the farms [Changoi, Kapchorua, Tinderet & Kaimosi] do you think these can be sold off as a whole? Sub-divided and sold off? Price per acre in the area?
The book NAV is 750/share and that includes 300/- in cash [or near cash & receivables]
The largest liability is Deferred Taxation which only comes into play when the (revalued) assets are sold. The board is unsure whether the company still owns the land its farms sit on given the new laws on foreign ownership of land. Please show me where the board of the company has stated it is unsure whether it still owns the land its farms sit on given the new laws on foreign ownership of land? Quoted from the Dividend Notice appended to the FY Results Quote:The current very uncertain position concerning the Group's Land Titles as 99 year leases.... Yes, the 'Land Titles' as 99 year leases. It does not mean as @guru267 said "The board is unsure whether the company still owns the land its farms sit on given the new laws on foreign ownership of land." @PesaNane - Does "The current very uncertain position concerning the Group's Land Titles as 99 year leases...." mean that WTK doesn't currently own [lease] the land? Anyway, I will wait to see what @guru267's answer is. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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VituVingiSana wrote:Pesa Nane wrote:VituVingiSana wrote:guru267 wrote:VituVingiSana wrote:For those who know the farms [Changoi, Kapchorua, Tinderet & Kaimosi] do you think these can be sold off as a whole? Sub-divided and sold off? Price per acre in the area?
The book NAV is 750/share and that includes 300/- in cash [or near cash & receivables]
The largest liability is Deferred Taxation which only comes into play when the (revalued) assets are sold. The board is unsure whether the company still owns the land its farms sit on given the new laws on foreign ownership of land. Please show me where the board of the company has stated it is unsure whether it still owns the land its farms sit on given the new laws on foreign ownership of land? Quoted from the Dividend Notice appended to the FY Results Quote:The current very uncertain position concerning the Group's Land Titles as 99 year leases.... Yes, the 'Land Titles' as 99 year leases. It does not mean as @guru267 said "The board is unsure whether the company still owns the land its farms sit on given the new laws on foreign ownership of land." @PesaNane - Does "The current very uncertain position concerning the Group's Land Titles as 99 year leases...." mean that WTK doesn't currently own [lease] the land? Anyway, I will wait to see what @guru267's answer is. They own the land. When they will loose it (lease) becomes the unknown. Did they really have to stress on the "VERY UNCERTAIN"? Pesa Nane plans to be shilingi when he grows up.
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Rank: Chief Joined: 1/3/2007 Posts: 18,224 Location: Nairobi
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Pesa Nane wrote:VituVingiSana wrote:Pesa Nane wrote:VituVingiSana wrote:guru267 wrote:VituVingiSana wrote:For those who know the farms [Changoi, Kapchorua, Tinderet & Kaimosi] do you think these can be sold off as a whole? Sub-divided and sold off? Price per acre in the area?
The book NAV is 750/share and that includes 300/- in cash [or near cash & receivables]
The largest liability is Deferred Taxation which only comes into play when the (revalued) assets are sold. The board is unsure whether the company still owns the land its farms sit on given the new laws on foreign ownership of land. Please show me where the board of the company has stated it is unsure whether it still owns the land its farms sit on given the new laws on foreign ownership of land? Quoted from the Dividend Notice appended to the FY Results Quote:The current very uncertain position concerning the Group's Land Titles as 99 year leases.... Yes, the 'Land Titles' as 99 year leases. It does not mean as @guru267 said "The board is unsure whether the company still owns the land its farms sit on given the new laws on foreign ownership of land." @PesaNane - Does "The current very uncertain position concerning the Group's Land Titles as 99 year leases...." mean that WTK doesn't currently own [lease] the land? Anyway, I will wait to see what @guru267's answer is. They own the land. When they will loose it (lease) becomes the unknown. Did they really have to stress on the "VERY UNCERTAIN"? Research is a wonderful thing! There are 2 outcomes under the 'lease': 1) A 99-year lease from the date of the original lease [some time in the 1900s but this is likely to be AFTER Kenya became a Crown Colony in 1920. [If this is the case, then WTK should sub-divide and sell the farms at the highest possible price before the politicians grab it. If I understand it, the incumbent or current user gets first crack at renewing the lease so the 99-year can be extended] 2) The date is effective from the date of the promulgation of the (new) Constitution. I would assume the landowners/lessors will push for an interpretation of the latter. [If this is the case then the prospects in our lifetime look very good] The constitution is poorly drafted in many sections. Look at the matter of the General Election & the constant back & forth as to what date they should be! This is another confusing area which could have been clarified from the start. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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VituVingiSana wrote:Pesa Nane wrote:VituVingiSana wrote:Pesa Nane wrote:VituVingiSana wrote:guru267 wrote:VituVingiSana wrote:For those who know the farms [Changoi, Kapchorua, Tinderet & Kaimosi] do you think these can be sold off as a whole? Sub-divided and sold off? Price per acre in the area?
The book NAV is 750/share and that includes 300/- in cash [or near cash & receivables]
The largest liability is Deferred Taxation which only comes into play when the (revalued) assets are sold. The board is unsure whether the company still owns the land its farms sit on given the new laws on foreign ownership of land. Please show me where the board of the company has stated it is unsure whether it still owns the land its farms sit on given the new laws on foreign ownership of land? Quoted from the Dividend Notice appended to the FY Results Quote:The current very uncertain position concerning the Group's Land Titles as 99 year leases.... Yes, the 'Land Titles' as 99 year leases. It does not mean as @guru267 said "The board is unsure whether the company still owns the land its farms sit on given the new laws on foreign ownership of land." @PesaNane - Does "The current very uncertain position concerning the Group's Land Titles as 99 year leases...." mean that WTK doesn't currently own [lease] the land? Anyway, I will wait to see what @guru267's answer is. They own the land. When they will loose it (lease) becomes the unknown. Did they really have to stress on the "VERY UNCERTAIN"? Research is a wonderful thing! There are 2 outcomes under the 'lease': 1) A 99-year lease from the date of the original lease [some time in the 1900s but this is likely to be AFTER Kenya became a Crown Colony in 1920. [If this is the case, then WTK should sub-divide and sell the farms at the highest possible price before the politicians grab it. If I understand it, the incumbent or current user gets first crack at renewing the lease so the 99-year can be extended] 2) The date is effective from the date of the promulgation of the (new) Constitution. I would assume the landowners/lessors will push for an interpretation of the latter. [If this is the case then the prospects in our lifetime look very good] The constitution is poorly drafted in many sections. Look at the matter of the General Election & the constant back & forth as to what date they should be! This is another confusing area which could have been clarified from the start. @VVS so we are in agreement. The board has no clue about the ownership of the said land. I wonder how the value of the land is affected. Mark 12:29
Deuteronomy 4:16
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Rank: Chief Joined: 1/3/2007 Posts: 18,224 Location: Nairobi
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guru267 wrote:VituVingiSana wrote:Pesa Nane wrote:VituVingiSana wrote:Pesa Nane wrote:VituVingiSana wrote:guru267 wrote:VituVingiSana wrote:For those who know the farms [Changoi, Kapchorua, Tinderet & Kaimosi] do you think these can be sold off as a whole? Sub-divided and sold off? Price per acre in the area?
The book NAV is 750/share and that includes 300/- in cash [or near cash & receivables]
The largest liability is Deferred Taxation which only comes into play when the (revalued) assets are sold. The board is unsure whether the company still owns the land its farms sit on given the new laws on foreign ownership of land. Please show me where the board of the company has stated it is unsure whether it still owns the land its farms sit on given the new laws on foreign ownership of land? Quoted from the Dividend Notice appended to the FY Results Quote:The current very uncertain position concerning the Group's Land Titles as 99 year leases.... Yes, the 'Land Titles' as 99 year leases. It does not mean as @guru267 said "The board is unsure whether the company still owns the land its farms sit on given the new laws on foreign ownership of land." @PesaNane - Does "The current very uncertain position concerning the Group's Land Titles as 99 year leases...." mean that WTK doesn't currently own [lease] the land? Anyway, I will wait to see what @guru267's answer is. They own the land. When they will loose it (lease) becomes the unknown. Did they really have to stress on the "VERY UNCERTAIN"? Research is a wonderful thing! There are 2 outcomes under the 'lease': 1) A 99-year lease from the date of the original lease [some time in the 1900s but this is likely to be AFTER Kenya became a Crown Colony in 1920. [If this is the case, then WTK should sub-divide and sell the farms at the highest possible price before the politicians grab it. If I understand it, the incumbent or current user gets first crack at renewing the lease so the 99-year can be extended] 2) The date is effective from the date of the promulgation of the (new) Constitution. I would assume the landowners/lessors will push for an interpretation of the latter. [If this is the case then the prospects in our lifetime look very good] The constitution is poorly drafted in many sections. Look at the matter of the General Election & the constant back & forth as to what date they should be! This is another confusing area which could have been clarified from the start. @VVS so we are in agreement. The board has no clue about the ownership of the said land. I wonder how the value of the land is affected. No, we are not in agreement. How do you know that "the board has no clue about the ownership of the said land."? Please post a link/s or other info that we can use to make sense of this. Do you have a source? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,224 Location: Nairobi
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Tea prices hit 7-month high as demand at auction rises http://www.businessdaily...32/-/1b07d4/-/index.htmlGreedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Williamson Tea FY14 Loss of Ksh 228Mn
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