Despite a fairly political first half of the year (i.e. equals more newspaper sales all things being constant), Standard Group saw revenue rise of 9%, but higher expenses and financing charges saw PBT fall by 7%. Cash flow position remains negative. With that perfomance, would rather buy NMG.
Pan-Africa Insurance saw a particularly good half given the circumstances (I'd have thought claims would have gone up due to the destruction earlier in the year). Its premiums were up for the period by around 20%. This could be an indirect result of more people taking insurance. PAT was up by 798%, but this is due to unrealised gains from its very volatile APA subsidiary though PBT was also up by 32%. Still, I prefer KenRe in the insurance business.
Kakuzi as expected, perfomed badly. I am pretty sure the shenangigans earlier in the year where it was trying to sell some of its assets against vociferous opposition from minority shareholders has not helped. I avoid agriculture companies as I can't predict or keep up to date with weather patterns, global commodity prices, exchange rates et al.
2 comments:
SGL: Remember they bought/built new premises and new equipment. I am not saying they are a good buy but the CF statement might not give you the full picture.
PAI: An under-performer vs Jubilee. KenRe is a government-sanctioned monopoly. Can it survive with competition?
Kakuzi: Its the low prices of commodities esp tea... weak KShs will benefit them in 2008-9.
On Std, thats true, I actually thought it had already financed a chunk of this last year.
KRe will be in a better place by 2011.
The volatility makes the shares mainly good for speculators.
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