Comments:
During the six months to August 2010, the group turnover was Ksh 381 million and this represents
61% of the total turnover reported for the 12 months ended Feb 2010. The sales for the two start-up
businesses in Cape Town and Johannesburg had not picked up during the period. We expect a
significant improvement in top line contribution from these two units in the second half of the
financial year.
Despite a reduction in costs in all business units, we had to add the costs of the South African units.
This resulted in costs being 60% of the annual costs for the year ended Feb 2010. We are confident
that these costs will be maintained at these levels for the second half of the year.Operating profits
for the six month period were Ksh 29 million in (full year to Feb 2010 of Ksh 28.8m). Every effort is
being made to improve on this figure in the second half of the year.
The group profit for the half year was Ksh 10.3m as opposed to a loss of Ksh 12m in the full year. As
we own 100% of the South African businesses, which were loss making in the period under review,
we had to absorb the entire loss, yet we had to share the profits in our Botswana and Kenya
businesses which were all profitable as we do not hold all of them at 100%. This resulted in a net loss
after removing non controlling interest of Ksh 2.8m.
Following the pickup in sales in the second half in South Africa, we are confident that in the full year
the loss will cease to exist.
In our statement of financial position, we are holding 25% of our current assets in the form of cash.
Our AGM for the year ended Feb 2010 was delayed due to a pending application at the Capital
Markets Authority. We have now decided to hold it on Friday 17th December 2010 at 3pm at Nairobi
Club.
Michael Matu
Chief Executive
By inference, the man is all that Mr Phantom is not: an untrustworthy radical, divisive, too many enemies, a dictator, and a persistent liar...Gaitho dialogues.