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Centum 2019/2020
Rank: Veteran Joined: 8/10/2014 Posts: 966 Location: Kenya
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Ericsson wrote:watesh wrote:sparkly wrote:watesh wrote:From the CEO's statement in one of the interviews, an increase is not likely this past financial year ended March 31 even before covid. Centum (the company) needs to first either get higher dividends from Two Rivers Development, Isuzu, Longhorn, Nas Servair, Sidian & Nabo Capital or complete and sell its real estate projects since they can only recognize deposits from sales as revenue once a plot owner has completed the payment, the title has been processed and the project is complete. This new financial year Sidian is back in loss territory, Longhorn already given a profit warning, Nas Servair is out of service due to no activity at the airport and real estate industry is now under significant slowdown but we wait for further information on sales esp in Vipingo and Pearl Marina since some of their constructions are close to completion. Initial plans stated during half year results presentation was to use proceeds from real estate but they had 11bn in cash sitting in the bank. So they should shed more light on it when full year results are out. Dividend will result from the interest of 1.2B p.a. that was servicing debt as opposed to higher profitability from investments There new dividend policy of 30% of cash annuity income at company level (not consolidated) means they needs dividend and interest income to go above 2.8bn. At half year 2020 it was at ksh0.6bn so for full year 2020 it may be hard to hit that but lets wait and see. The doing away with the ksh1.2bn in interest payments will lead to more earnings being retained at company level rather than bigger dividends in the short term till the top line is lifted. For a proper jump in dividends Centum Real Estate subsidiary has to pay some dividends to the parent company considering the vast majority of the assets are held by it. So far they havnt paid since projects havnt been handed over From what sources did they retire the bonf
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Rank: Elder Joined: 12/4/2009 Posts: 10,671 Location: NAIROBI
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When are they releasing FY results Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 6/2/2008 Posts: 1,438
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Ericsson wrote:When are they releasing FY results Early tomorrow morning.
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Rank: Veteran Joined: 7/1/2014 Posts: 903 Location: sky
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net profit of ksh 4.6 dividend retained 1.20 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: Veteran Joined: 8/10/2014 Posts: 966 Location: Kenya
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Observations on FY20 - Stagnant dividend of 1.20 was expected. The vast majority of cash from proceeds of Almasi sale has been deployed on fixed income average interest rate of 12%. Real estate construction is within the time plan, hand overs to start from August so FY21 will have a significant revenue chunk coming from Centum Real Estate since they can start recognizing revenue once the units are handed over. Main provider of liquidity to the company will be its marketable securities portfolio since the companies in private equity portfolio are mostly in the red this financial year (Sidian back to losses, LKL profit warning, Isuzu nothing mentioned. Covid has led to a 40% decline in sale of units in their real estate portfolio in April but it is picking up. Capital Gains tax was a huge tax expense to the company this year. Going forward the capital gains tax will be absent in the next financial year and interest expense will significantly reduce from the 1.8bn charge. The finance cost was higher due to a forex loss realized when retiring their USD loan.....MY TAKE: the current financial year will be largely driven by how fast they can convert their real estate inventory into revenue. From a liquidity perspective, if they keep their Ksh8.9bn investment in fixed income they should cover the next dividend easily (1.2 per share minimum) without waiting for dividend income from their private equity portfolio. A dividend rise in this current financial year is highly dependent on Centum Real Estate's agility.
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Rank: Veteran Joined: 7/1/2014 Posts: 903 Location: sky
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watesh wrote:Observations on FY20 - Stagnant dividend of 1.20 was expected. The vast majority of cash from proceeds of Almasi sale has been deployed on fixed income average interest rate of 12%. Real estate construction is within the time plan, hand overs to start from August so FY21 will have a significant revenue chunk coming from Centum Real Estate since they can start recognizing revenue once the units are handed over. Main provider of liquidity to the company will be its marketable securities portfolio since the companies in private equity portfolio are mostly in the red this financial year (Sidian back to losses, LKL profit warning, Isuzu nothing mentioned. Covid has led to a 40% decline in sale of units in their real estate portfolio in April but it is picking up. Capital Gains tax was a huge tax expense to the company this year. Going forward the capital gains tax will be absent in the next financial year and interest expense will significantly reduce from the 1.8bn charge. The finance cost was higher due to a forex loss realized when retiring their USD loan.....MY TAKE: the current financial year will be largely driven by how fast they can convert their real estate inventory into revenue. From a liquidity perspective, if they keep their Ksh8.9bn investment in fixed income they should cover the next dividend easily (1.2 per share minimum) without waiting for dividend income from their private equity portfolio. A dividend rise in this current financial year is highly dependent on Centum Real Estate's agility. i expected special dividend from sale of almasi, it was a very strategic investment and shareholders should have benefited in a way directly. there was also alot of hype on dividend hike, but fortunately they are paying something something this hard time 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: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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littledove wrote:watesh wrote:Observations on FY20 - Stagnant dividend of 1.20 was expected. The vast majority of cash from proceeds of Almasi sale has been deployed on fixed income average interest rate of 12%. Real estate construction is within the time plan, hand overs to start from August so FY21 will have a significant revenue chunk coming from Centum Real Estate since they can start recognizing revenue once the units are handed over. Main provider of liquidity to the company will be its marketable securities portfolio since the companies in private equity portfolio are mostly in the red this financial year (Sidian back to losses, LKL profit warning, Isuzu nothing mentioned. Covid has led to a 40% decline in sale of units in their real estate portfolio in April but it is picking up. Capital Gains tax was a huge tax expense to the company this year. Going forward the capital gains tax will be absent in the next financial year and interest expense will significantly reduce from the 1.8bn charge. The finance cost was higher due to a forex loss realized when retiring their USD loan.....MY TAKE: the current financial year will be largely driven by how fast they can convert their real estate inventory into revenue. From a liquidity perspective, if they keep their Ksh8.9bn investment in fixed income they should cover the next dividend easily (1.2 per share minimum) without waiting for dividend income from their private equity portfolio. A dividend rise in this current financial year is highly dependent on Centum Real Estate's agility. i expected special dividend from sale of almasi, it was a very strategic investment and shareholders should have benefited in a way directly. there was also alot of hype on dividend hike, but fortunately they are paying something something this hard time @watesh - Nice summary. @LittleDove - Any and all dividends are welcome. Equity and NCBA cancelled theirs! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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VituVingiSana wrote:littledove wrote:watesh wrote:Observations on FY20 - Stagnant dividend of 1.20 was expected. The vast majority of cash from proceeds of Almasi sale has been deployed on fixed income average interest rate of 12%. Real estate construction is within the time plan, hand overs to start from August so FY21 will have a significant revenue chunk coming from Centum Real Estate since they can start recognizing revenue once the units are handed over. Main provider of liquidity to the company will be its marketable securities portfolio since the companies in private equity portfolio are mostly in the red this financial year (Sidian back to losses, LKL profit warning, Isuzu nothing mentioned. Covid has led to a 40% decline in sale of units in their real estate portfolio in April but it is picking up. Capital Gains tax was a huge tax expense to the company this year. Going forward the capital gains tax will be absent in the next financial year and interest expense will significantly reduce from the 1.8bn charge. The finance cost was higher due to a forex loss realized when retiring their USD loan.....MY TAKE: the current financial year will be largely driven by how fast they can convert their real estate inventory into revenue. From a liquidity perspective, if they keep their Ksh8.9bn investment in fixed income they should cover the next dividend easily (1.2 per share minimum) without waiting for dividend income from their private equity portfolio. A dividend rise in this current financial year is highly dependent on Centum Real Estate's agility. i expected special dividend from sale of almasi, it was a very strategic investment and shareholders should have benefited in a way directly. there was also alot of hype on dividend hike, but fortunately they are paying something something this hard time @watesh - Nice summary. @LittleDove - Any and all dividends are welcome. Equity and NCBA cancelled theirs! Deflated expectations of a dividend hike, expect a fall in price. Life is short. Live passionately.
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Rank: New-farer Joined: 2/8/2018 Posts: 73
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Looking at the asset classification ( 64% of assets) and disposal of other key investments, we can conclude that the company has now become a real estate company.
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Rank: Member Joined: 3/8/2018 Posts: 507 Location: Nairobi
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sparkly wrote:VituVingiSana wrote:littledove wrote:watesh wrote:Observations on FY20 - Stagnant dividend of 1.20 was expected. The vast majority of cash from proceeds of Almasi sale has been deployed on fixed income average interest rate of 12%. Real estate construction is within the time plan, hand overs to start from August so FY21 will have a significant revenue chunk coming from Centum Real Estate since they can start recognizing revenue once the units are handed over. Main provider of liquidity to the company will be its marketable securities portfolio since the companies in private equity portfolio are mostly in the red this financial year (Sidian back to losses, LKL profit warning, Isuzu nothing mentioned. Covid has led to a 40% decline in sale of units in their real estate portfolio in April but it is picking up. Capital Gains tax was a huge tax expense to the company this year. Going forward the capital gains tax will be absent in the next financial year and interest expense will significantly reduce from the 1.8bn charge. The finance cost was higher due to a forex loss realized when retiring their USD loan.....MY TAKE: the current financial year will be largely driven by how fast they can convert their real estate inventory into revenue. From a liquidity perspective, if they keep their Ksh8.9bn investment in fixed income they should cover the next dividend easily (1.2 per share minimum) without waiting for dividend income from their private equity portfolio. A dividend rise in this current financial year is highly dependent on Centum Real Estate's agility. i expected special dividend from sale of almasi, it was a very strategic investment and shareholders should have benefited in a way directly. there was also alot of hype on dividend hike, but fortunately they are paying something something this hard time @watesh - Nice summary. @LittleDove - Any and all dividends are welcome. Equity and NCBA cancelled theirs! Deflated expectations of a dividend hike, expect a fall in price. Let the impatient sell. We welcome lower entry prices.
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Rank: New-farer Joined: 8/1/2019 Posts: 86
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Rank: Elder Joined: 12/4/2009 Posts: 10,671 Location: NAIROBI
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Gains of Ksh.2.7billion was booked from disposal of ALmasi Beverages and Nairobi Bottlers limited.The company changed the accounting method for realised gains on exit of investments following the adoption of IFRS 9 Financial instruments. Previously gains booked on the income statement were computed as the difference between the sales proceeds from the exit and acquisition cost of the asset,which would have resulted in realised gain for the year ended March 31 2020 of ksh.16 billion. Under the IFRS 9 gain is computed as the difference between the sales proceeds and the previous period valuation. The company recorded a one-off impairment provisions of ksh.3.6billion ,which include provision of Amu power Company Ltd. At March 31 2020,the only long term borrowing on the company's balance sheet was the 5-year ksh.6.6billion corporate bond. On June 8 2020,centum repaid the full amount outsanding. The company has now fully retired all its medium and long term debt having earlier repaid USD 75 Million (ksh.7.8 Billion) of USD Dollar denominated bank debt in September 2019. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: New-farer Joined: 8/1/2019 Posts: 86
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littledove wrote:net profit of ksh 4.6
dividend retained 1.20 When were the books closing for this dividend? I cannot locate any info concerning books closure
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Rank: Elder Joined: 12/4/2009 Posts: 10,671 Location: NAIROBI
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Centum Real Estate raises ksh.3bn from project bond issue 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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Ericsson wrote:Centum Real Estate raises ksh.3bn from project bond issue Kes 3b is pocket change for a bond. 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: 12/4/2009 Posts: 10,671 Location: NAIROBI
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Angelica _ann wrote:Ericsson wrote:Centum Real Estate raises ksh.3bn from project bond issue Kes 3b is pocket change for a bond. https://www.capitalfm.co.ke/business/?p=70812
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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Angelica _ann wrote:Ericsson wrote:Centum Real Estate raises ksh.3bn from project bond issue Kes 3b is pocket change for a bond. What's the cut-off for it not be pocket change? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,671 Location: NAIROBI
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Angelica _ann wrote:Ericsson wrote:Centum Real Estate raises ksh.3bn from project bond issue Kes 3b is pocket change for a bond. Undersubscribed by 25% Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 7/1/2009 Posts: 256
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Rank: Elder Joined: 12/4/2009 Posts: 10,671 Location: NAIROBI
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Centum share price hits fresh 8-year low of ksh.14.90 Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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