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Deacons HY18
Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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 Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 6/23/2009 Posts: 13,517 Location: nairobi
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The point of no return. @yaserbigchair wrote about this years ago
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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Quote:Commentary of the Performance
The Board of Directors of Deacons (East Africa) Plc hereby announces the unaudited results of the Group for the six months period ended June 30, 2018. Following the sale of the Mr Price (MRP) Franchised Business, the net sales for the Group decreased by 20.7% for the remaining business while the overall decrease (factoring in discontinued operations) was 65%.
The overall retail trading environment during the period under review was characterized by extraordinary and exceptional events that adversely affected the business, key among them being as follows:
(i) Loss of revenue from discontinued operations (MRP) amounting to Kshs 529 M, which formed over 50% of the business. This was compounded by the slow economic start in 2018 as the Country recovered from the 2017 election cycle.
(ii) Performance was largely affected by cash constraints leading to a drop in stock levels across most stores. This resulted in suppressed margins and reduced newness of product.
(iii) The retail space reduced from 190,341 square feet in 2017 to 69,614
in 2018 because of MRP discontinued operations and closure of non performing units.
(iv) The non-performance of major anchor tenants reduced traffic into the
malls with 98% of our stores operating in malls whose anchor tenants are experiencing stocking challenges.
(v) Aggressive sale offers in Q2 reduced the average gross margins to 25% but enabled the business to flush out stock and improve liquidity.
The F & F brand has, however, continued to register very encouraging results indicating that its value proposition was well received and has great potential to grow into a chain of stores.
The total operating expenses went down by 84% in line with the downsized business and the cost rationalization program that was implemented in May 2017. Despite this, the Group registered a Loss After Tax of Kshs 229.5 M compared to a loss of Kshs180.4 M recorded in a similar period of the prior year. 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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Quote:Profit Warning Announcement
This announcement is made pursuant to the provisions of Paragraph G.05 (1) (f) & (2) of the Fifth Schedule to the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 2002 Amended 2016 for the information of investors and the general public.
The Board of Directors of Deacons (East Africa) PLC wishes to inform the shareholders of the Company, potential investors and the general public that based on preliminary assessment of the unaudited financial statements of the Group for the half year period ended 30 June 2018, and the forecast to 31 December 2018, the projected earnings of the Group for the current financial year are expected to potentially decrease by at least 25% compared to the reported earnings for the financial year ended 31
December 2017 largely due to the following factors: -
• Slow economic start in 2018 as the Country recovered from the 2017 election cycle.
• Operational costs for the Mr Price stores for the first four months of 2018 and loss of revenue from the discontinued Mr Price operations.
• Suppressed margins and reduced newness of product which was largely affected by cash constraints.
• Non-performance of major anchor tenants reduced traffic into the malls. 98% of our stores operate in malls whose anchor tenants are experiencing stocking challenges.
Consequently, the Board has launched a mid-term turnaround strategy geared to advancing the Group’s performance. This will be achieved through the restructuring of the capital base of the Company with the support of major shareholders in order to grow the Deacons house brand, optimise the Company’s successful brands and reduce operational expenditure. The cost cutting measures already in place are bearing
positive results. The Board has also appointed a Corporate Finance Advisory Firm and an Investment Bank to advice on the overall strategy of the business with a view to managing the risks facing the Company.
The Board is optimistic that the foregoing initiatives among others will provide a good foundation to revitalize the business. Pesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Pesa Nane wrote:Quote:Profit Warning Announcement
This announcement is made pursuant to the provisions of Paragraph G.05 (1) (f) & (2) of the Fifth Schedule to the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 2002 Amended 2016 for the information of investors and the general public.
The Board of Directors of Deacons (East Africa) PLC wishes to inform the shareholders of the Company, potential investors and the general public that based on preliminary assessment of the unaudited financial statements of the Group for the half year period ended 30 June 2018, and the forecast to 31 December 2018, the projected earnings of the Group for the current financial year are expected to potentially decrease by at least 25% compared to the reported earnings for the financial year ended 31
December 2017 largely due to the following factors: -
• Slow economic start in 2018 as the Country recovered from the 2017 election cycle.
• Operational costs for the Mr Price stores for the first four months of 2018 and loss of revenue from the discontinued Mr Price operations.
• Suppressed margins and reduced newness of product which was largely affected by cash constraints.
• Non-performance of major anchor tenants reduced traffic into the malls. 98% of our stores operate in malls whose anchor tenants are experiencing stocking challenges.
Consequently, the Board has launched a mid-term turnaround strategy geared to advancing the Group’s performance. This will be achieved through the restructuring of the capital base of the Company with the support of major shareholders in order to grow the Deacons house brand, optimise the Company’s successful brands and reduce operational expenditure. The cost cutting measures already in place are bearing
positive results. The Board has also appointed a Corporate Finance Advisory Firm and an Investment Bank to advice on the overall strategy of the business with a view to managing the risks facing the Company.
The Board is optimistic that the foregoing initiatives among others will provide a good foundation to revitalize the business. 98% of their stores operate in malls... How many stores do they have since 98% is at the very least 49 out of 50. Life is short. Live passionately.
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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obiero wrote:The point of no return. @yaserbigchair wrote about this years ago Bora kifo than uhai Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 5/2/2018 Posts: 267
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Ericsson wrote:obiero wrote:The point of no return. @yaserbigchair wrote about this years ago Bora kifo than uhai Sub-50 cents!
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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Superprime1 wrote:Ericsson wrote:obiero wrote:The point of no return. @yaserbigchair wrote about this years ago Bora kifo than uhai Sub-50 cents! It should be suspended till it comes with a tangible plan to turnaround fortunes and improve share price. If it can't then kick it out Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Talking and holding talk shows is easy, running a profitable business is no talk. cc. Muchiri In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Imezama? possunt quia posse videntur
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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Dear @thedeal, If you can find and post the so-called quote I made that "this is the next Gap" [please post the entire quote/post so it is in context] then I will admit it AND donate $100 to a charity that plants trees. Please provide the date and thread of the quote as well. If you cannot find the so-called quote you said I made that "this is the next Gap" then as an apology, please send $100 to the same charity as indicated above. I shall provide info of this charity as soon as we have the answer. This is line with my new resolution of discussing the merits and demerits of investments. Sincerely, VVS P.S. Doesn't apply to @Obiero (& KQ) coz I want a little fun  plus he still owes me 100k + interest  Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Kujeni BBK, you will not experience this administration madness. Time tested. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Member Joined: 3/8/2018 Posts: 507 Location: Nairobi
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Imekunywa maji. 40 days suspension
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Rank: Veteran Joined: 11/13/2015 Posts: 1,590
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The CEO earns 23m a year to run this thing to the ground and burn shareholders and bondholders to recognition. Kenya has a peculiar way of rewarding mediocrity
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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wukan wrote:The CEO earns 23m a year to run this thing to the ground and burn shareholders and bondholders to recognition. Kenya has a peculiar way of rewarding mediocrity There are bondholders in here, whah Corporate governance in Kenya goes back to the dogs. Pole kwao!!!! In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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Angelica _ann wrote:wukan wrote:The CEO earns 23m a year to run this thing to the ground and burn shareholders and bondholders to recognition. Kenya has a peculiar way of rewarding mediocrity There are bondholders in here, whah Corporate governance in Kenya goes back to the dogs. Pole kwao!!!! Anyone could see this coming. Have any of you walked into a deacons operated store? I went to thebabyshop Sarit a few months back and the staff treated us like they were doing us a favor. We had originally stopped going to ths shop a few years earlier because of the same reason. Thought they had changed. It’s like a friend went to Bata the other day to buy. Shoes, the shoes were like 5K and the shop charged him 30/- for a bag. He said he can’t be buying shoes for 5K and still having to pay for a juala (pardon the french) So he asked for the manager and said he will not buy the shoes as he has to pay for the bag and she said Sawa tu and he left without buying em hmmmppfff
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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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Deacons also had issues with choice of clothing...they had bad taste tbh. And why set up separate stores of Adidas etc...why not just do single stores and save on rent? Daft, but what do you expect from a politician. Business opportunities are like buses,there's always another one coming
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Rank: Elder Joined: 6/23/2009 Posts: 13,517 Location: nairobi
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VituVingiSana wrote:Dear @thedeal, If you can find and post the so-called quote I made that "this is the next Gap" [please post the entire quote/post so it is in context] then I will admit it AND donate $100 to a charity that plants trees. Please provide the date and thread of the quote as well. If you cannot find the so-called quote you said I made that "this is the next Gap" then as an apology, please send $100 to the same charity as indicated above. I shall provide info of this charity as soon as we have the answer. This is line with my new resolution of discussing the merits and demerits of investments. Sincerely, VVS P.S. Doesn't apply to @Obiero (& KQ) coz I want a little fun plus he still owes me 100k + interest Lol. Let me help look for the quote, seems like something you would say..
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Elder Joined: 6/23/2009 Posts: 13,517 Location: nairobi
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Ericsson wrote:Superprime1 wrote:Ericsson wrote:obiero wrote:The point of no return. @yaserbigchair wrote about this years ago Bora kifo than uhai Sub-50 cents! It should be suspended till it comes with a tangible plan to turnaround fortunes and improve share price. If it can't then kick it out This demise was forecasted 3 years ago..
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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