I agree with a number of your points, if we were major shareholders we'd be slugging it out at the AGM. For now, wazua will do. Sometimes a company can be over-capitalised and part of that is as you've said holding excess cash predominantly through their surplus reserve. You can leverage on your capital in good times when rates are low by borrowing at below market rates on a corporate bond and return cash to your shareholders either through a special dividend or buy-back that increases their total return on investment. This is all I'm suggesting.


By NM I meant PAT/Gross. Nonetheless, on an operating basis they make roughly 47% margin. By way of back of hand calculations, they can increase EPS by 1.93 to 3.00 by doing this. Moreover, their EPS would be more sensitive to changes in gross sales than it is at the moment. ARM sells at a higher multiple than Bamburi because they have a more aggressive capital structure. (Not that I'm advocating for so much debt). Shareholders would benefit.

As for new normal, there's nothing like that. People always say the world has changed but as they say, the more things change the more they stay the same. Rates will come down soon, I don't see us going into election period with such elevated rates albeit the macro imbalances are getting worse.

The end year results have been released.
Some key highlights:
-Turnover at 809mn which is more or less the same as 826mn reported last year.
-PBT at 580mn vs 597mn last year but a higher taxation charge of 186mn vs 106mn which has drasticaly reduced the PAT to 393mn compared to 439mn last year which translates to an EPS of 1.55 vs 1.93.
-Dividend remains the same at 70cents per share.

What is ailing this company?

Okay!

thanks bro,you were right.