ScanGroup announces their 1H 2006 results which are much better than 1H 2005 ahead of commencement of the initial trading on Aug 29 2006.
Gross Revenues: 1.39B vs 1.13B (+23%)
PBT: 89M vs 75M (+19%)
PAT (Ordinary Shareholders): 0.41 vs 0.34 (30%+) *based on 150M shares (currently there are 159M shares)
No Interim Dividend - most firms have this policy to cut down on costs. In SG's case, these could mean over 96,000 cheques!
The growth is commendable. I think SG should have sold more shares, eliminating their current debt & have ready cash for new acquisitions. Nevertheless, I think commercial banks will lend to SG based on its current performance.
A significant post-IPO event was the purchase of 70% of FCB (TZ) by ScanGroup through LoweScanAd (TZ). I think that will open the doors for SG to acquire more firms using a combination of cash & stock.
ScanGroup expects better trading results during 2H 2006 coz of cyclical factors. Kenyans have more holidays to shop in 2H esp the Xmas season when the big guns advertise ad nauseum.
After the measly allocation, TZ news & 1H results, I expect a strong opening for the shares on Aug 29 2006.
Just a guess BUT I think the shares will open at 15/- +. The shares will be heavily supported by Institutional buying at reasonable P/Es. This will enable SG reduce their shareholder count to manageable levels.
I expect SG to take a hit in their 2H 2006 results relating to the IPO costs e.g. additional registrar fees for the shareholder listings and administration & maintenance costs relating to the refunds.
2007 will see additional line items including printing & mailing 90,000 Annual Reports and the hire of a huge hall (Bomas or Kasarani)...
- ► 2012 (29)
- ► 2011 (44)
- ► 2008 (170)
- ► 2007 (79)
- ScanGroup off to an explosive start in initial Tra...
- ScanGroup Announces 1H 2006 Results
- Bamburi - Friend or Foe?
- Scangroup IPO beats expectations!
- Kenya Airways & Kenya Times - World of Difference!...
- Private Firms going Public ? - The Contenders
- New Listings on NSE in 2006-7... Wishful thinking?...
- mukhisa kituyi's comments on EAPC & Ole Mapelu don...
- Kick Tanzania out of the EAC
- Merali Empire gets unfavourable review from Nation...
- Scangroup IPO massively oversubscribed!
- CEOs & Managers Resign in Protest of Government In...
- ▼ August (12)