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Centum FY2022 - FY2026
Rank: Member Joined: 2/15/2010 Posts: 129 Location: Kenya
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With a low NPL ratio and increasing interest rates don't know if it was the best time, but may be they see something I don't. I thought they'd be more eager to divest from real estate? About time they considered distributing a portion of major stake sales as special dividends.
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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On its way down Centum market capitalisation will overtake Kenya Re Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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https://www.businessdail...ls-naivas-stake-3858104
Deals like this is what Centum could have used the funds for after selling their stake in Almasi beverages, Sidian,not repaying debt on real estate investment that have neverade a profit and are perennial loss making. TRLC has been in operation for 6 years all loss making. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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Centum Real estate issues a profit warning. https://pbs.twimg.com/me...ormat=jpg&name=smallWealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 8/10/2014 Posts: 969 Location: Kenya
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[quote=Ericsson]Centum Real estate issues a profit warning. https://pbs.twimg.com/me...rmat=jpg&name=small[/quote] I just want to see how much cash has been remitted to Centum in terms of shareholder loans and dividends. This will give a better prediction of Centum's full-year dividend.
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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watesh wrote:[quote=Ericsson]Centum Real estate issues a profit warning. https://pbs.twimg.com/me...rmat=jpg&name=small[/quote] I just want to see how much cash has been remitted to Centum in terms of shareholder loans and dividends. This will give a better prediction of Centum's full-year dividend. Zero from what I can see but this can only happen after completion of construction and sales so I do not expect anything from CRE to CICP until FY24 Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 7/1/2014 Posts: 903 Location: sky
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market is down but centum is trading heavy volume at ksh 8 . nse ni ukora tupu There are only two emotions in the stock market, fear and hope. The problem is, you hope when you should fear and fear when you should hope
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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littledove wrote:market is down but centum is trading heavy volume at ksh 8 . nse ni ukora tupu after the death of one of the main guys, I expect blood bath in future unless some takeover brings new vision "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 12/4/2009 Posts: 10,684 Location: NAIROBI
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mlennyma wrote:littledove wrote:market is down but centum is trading heavy volume at ksh 8 . nse ni ukora tupu after the death of one of the main guys, I expect blood bath in future unless some takeover brings new vision Takeover of a real estate company,that will be interesting Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Ericsson wrote:mlennyma wrote:littledove wrote:market is down but centum is trading heavy volume at ksh 8 . nse ni ukora tupu after the death of one of the main guys, I expect blood bath in future unless some takeover brings new vision Takeover of a real estate company,that will be interesting https://www.businessdail...-from-land-sale-3893128
Centum Real Estate has sold land worth Sh3.8 billion to other parties to undertake specific developments within its project plans. The company, a subsidiary of Centum Investment Company, sees the sale of its land holdings as a means of raising funds while also taking profits. “As at March 31, 2022, the business had collected cumulative cash of Sh3.85 billion from sales of 2,197 acres … with a total sales of Sh4.9 billion,” the real estate firm said in an investor briefing. “Sh1 billion being cash due from development right sales to be collected in the subsequent financial year." The buyer of a development right acquires the land on which only a specified project –such as a school or warehouse— approved by local authorities will be implemented. The real estate firm says it has added value to the development rights by investing in the necessary basic infrastructure. possunt quia posse videntur
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Rank: Veteran Joined: 8/10/2014 Posts: 969 Location: Kenya
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littledove wrote:market is down but centum is trading heavy volume at ksh 8 . nse ni ukora tupu Market cap of 5.3bn  . Despite holding 7bn in bonds & cash, selling Sidian for 4.3bn (enough to clear the debt of Centum level), having ksh14bn in residential unit sales and 1bn in receivable cash from land sales. Two Rivers losses is really hurting the image of the company. Even if TRDL goes bankrupt and they don't get anything from it the rest of the business is still worth more than ksh5bn
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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watesh wrote:littledove wrote:market is down but centum is trading heavy volume at ksh 8 . nse ni ukora tupu Market cap of 5.3bn . Despite holding 7bn in bonds & cash, selling Sidian for 4.3bn (enough to clear the debt of Centum level), having ksh14bn in residential unit sales and 1bn in receivable cash from land sales. Two Rivers losses is really hurting the image of the company. Even if TRDL goes bankrupt and they don't get anything from it the rest of the business is still worth more than ksh5bn If only I had 5.5b... I asked some friends who are active in real estate at the coast and they feel 2mn/acre around Vipingo is possible but it will take time to sell 6,000 acres given the size and economy. 6,000 acres x 2mn = 12bn (less debt) = 5bn just for Vipingo. Though it doesn't make sense for Vipingo to sell at 2mn/acre if it can sub-divide the land and sell 1/8 plots (@ 2.5mn) as it is doing with Kingswood. https://vipingodevelopment.com/kingswood-park/ "Competitively priced with flexible payment plan: Ksh. 2.5M for a 1/8 Acre plot" Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 6/26/2008 Posts: 384
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Centum has set aside Sh600.8 million to finance the buyback to stabilise the company’s share price and market valuation.
Centum Investment starts share buyback
TUESDAY FEBRUARY 07 2023
DNCENTUMHFY2711XC
Centum Investment Group CEO James Mworia. FILE PHOTO | SALATON NJAU | NMG
Centum Investment Company Plc has opened its share buyback offer after receiving the nod of its shareholders for the share repurchase exercise on Friday.
The offer to buy back 66.5 million shares by the company which opened on Monday is expected to run across an 18-month period to August 8 next year.
The share buyback was widely supported by the company’s shareholders at last week’s extraordinary general meeting with 98.59 percent of votes by shareholders supporting the initiative.
Centum’s management which has set aside Sh600.8 million to finance the buyback is betting on the programme to stabilise the company’s share price and market valuation.
“The share buyback is expected to provide liquidity to shareholders who may not have been able to trade due to the current depressed market conditions,” Centum’s chief executive James Mworia told shareholders.
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“It will reward long-term shareholders whose net asset value per share will improve as a result of the reduction in shares.”
The company has set the maximum share purchase price at Sh9.03 and the minimum at 50 cents.
Beyond the shareholder nod, Centum has the approval of the Capital Markets Authority to expand shares purchased in the program beyond the 25 percent daily-volume cap.
The exemption by the capital markets regulator is crucial in allowing Centum to attain the share buyback target within the 18-month window as Centum’s daily traded volumes are mostly below 100,000.
The share repurchase program is open to all shareholders irrespective of size but is subject to the maximum buyback size.
Centum’s floating shares are expected to reduce to 598.9 million at the end of the buyback exercise.
The board of Centum has reserved the right to terminate the buyback on conditions including when the program is no longer deemed to be in the best interest of the company, changes in economic and market conditions and the incidence of a material change in the firm’s financial position.
Read: Centum sets aside Sh600m for its share buy back plan
On Monday, in excess of 500,000 Centum shares were traded, marking a huge increase from the normal volumes.
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Rank: Member Joined: 9/27/2006 Posts: 503
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Really regret buying this company at 14. Was swayed by the 'NAV is 60' argument. No choice but to wait years for the price to hopefully bounce back before I bid Centum adieu.
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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deadpoet wrote:Really regret buying this company at 14. Was swayed by the 'NAV is 60' argument. No choice but to wait years for the price to hopefully bounce back before I bid Centum adieu. Ignore the non-shareholders and concentrate on the numbers. BUT if you choose to bail out, then we (CTUM shareholders staying put) will buy your shares at 0.03 Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 8/10/2014 Posts: 969 Location: Kenya
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deadpoet wrote:Really regret buying this company at 14. Was swayed by the 'NAV is 60' argument. No choice but to wait years for the price to hopefully bounce back before I bid Centum adieu. Same here. Their real estate constructions are taking forever to be complete. Eg Cascadia was launched way before covid and it still looks like it needs two more years. At this point, it's only the banks & management eating from the real estate section of the business. Then they wanted to sell Sidian at a loss when finally it had started making money which I saw as a dumb move. The shackles in the sector had just been broken and finally, the bank can start making proper money. They were whining it needs a lot of capital to keep up with growth but suddenly a year later there is Ksh600 million for buybacks. Clearly, Kirubi was the guy keeping everyone in check.
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Rank: Member Joined: 6/26/2008 Posts: 384
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watesh wrote:deadpoet wrote:Really regret buying this company at 14. Was swayed by the 'NAV is 60' argument. No choice but to wait years for the price to hopefully bounce back before I bid Centum adieu. Same here. Their real estate constructions are taking forever to be complete. Eg Cascadia was launched way before covid and it still looks like it needs two more years. At this point, it's only the banks & management eating from the real estate section of the business. Then they wanted to sell Sidian at a loss when finally it had started making money which I saw as a dumb move. The shackles in the sector had just been broken and finally, the bank can start making proper money. They were whining it needs a lot of capital to keep up with growth but suddenly a year later there is Ksh600 million for buybacks. Clearly, Kirubi was the guy keeping everyone in check. Good as he is, I think James Mworia's time is up. Centum needs new blood and fresh ideas. Plus JM owns Maiyan villas, some posh development in Nanyuki so I give him the side eye.
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Rank: New-farer Joined: 8/1/2019 Posts: 86
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deadpoet wrote:Really regret buying this company at 14. Was swayed by the 'NAV is 60' argument. No choice but to wait years for the price to hopefully bounce back before I bid Centum adieu. Exiting this stock is one of my best decisions ever as far as the NSE is concerned.
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Rank: Veteran Joined: 8/10/2014 Posts: 969 Location: Kenya
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xtina wrote:watesh wrote:deadpoet wrote:Really regret buying this company at 14. Was swayed by the 'NAV is 60' argument. No choice but to wait years for the price to hopefully bounce back before I bid Centum adieu. Same here. Their real estate constructions are taking forever to be complete. Eg Cascadia was launched way before covid and it still looks like it needs two more years. At this point, it's only the banks & management eating from the real estate section of the business. Then they wanted to sell Sidian at a loss when finally it had started making money which I saw as a dumb move. The shackles in the sector had just been broken and finally, the bank can start making proper money. They were whining it needs a lot of capital to keep up with growth but suddenly a year later there is Ksh600 million for buybacks. Clearly, Kirubi was the guy keeping everyone in check. Good as he is, I think James Mworia's time is up. Centum needs new blood and fresh ideas. Plus JM owns Maiyan villas, some posh development in Nanyuki so I give him the side eye. Either that or the new board is very risk-averse. They would rather buy bonds than build businesses.
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Rank: Member Joined: 2/15/2010 Posts: 129 Location: Kenya
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A few things I've since learnt about Centum
All of Centum's businesses are held for sale.
The M.O is buy or spawn a business, grow it, get dividends where possible or loan interest, sell at best possible terms,repeat.
Dividend policy; Only pays dividend from loan interest, dividends and interest earned by marketable securities portfolio(so called annuity income).
So no special dividends regardless of size of an exit!?
Real Estate/Centum RE
Management projects 4B cash to be realized once current phase of residentials is done with.
The receivables alone for the land rights already exceed debt taken against Vipingo land.
Set goal to complete all on-going residential projects by march 2024, rather ambitious.
Bond scheduled to be repaid Dec 2023.
Trific SEZ, the incentives of operating from there should improve tenancy/land sales.
Secured 3B from IFC to build next phase(s) of Mzizi
Others/PE
Jafari growth-Payday loans to civil servants at 3%/month only 1% loans NPL
Green blade's growth -40M/month PAT or over 400Mn/year(Oh and earns in dollars)
Sale of half of stake in Sidian, Will release about 2B cash
Commitment to be debt free by end of March 2024 at group level, very attainable.
With above in mind I think the future's quite okay.
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