dunkang wrote:sparkly wrote:Equity operated in Rwanda for one month in 2011. Watch out for start up costs in that country in form of staff costs, training and other operational costs.
Mis-information!
During presentation of HY 2011 results, King James indicated that
they had trained staff and constructed 5 of the 10 branches in Rwanda. The HY results were acceptable with well over 50% of ground work completed, therefore,
the issue of Rwanda expansion affecting results negatively arising is null and void.
Wewe Wacha Hate Speech! 25-26/- lazima by end month!
What if they had trained staff and constructed branches? That was pre-operating costs and CAPEX WIP at that time.
Equity Rwanda has now operated for three months, including part of 2011. The staff are on the payroll, intangibles have to be armotized, CAPEX depreciated. The Rwanda staff was in Nairobi for training for 6 months, staying at 4 star hotels. Where do you think this costs will go to?
The results have to be consolidated and Rwanda is not contributing to the bottom line.
Life is short. Live passionately.