2012-2013 HANDBOOK DISCLAIMER: No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the Nairobi Securities Exchange (NSE). Care has been taken in the preparation of this Handbook, however no representation, warranty or undertaking is given by the Nairobi Securities Exchange as to the accuracy of the information contained therein and accepts no responsibility or liability whatsoever. For more information about the NSE Handbook, please contact: The Nairobi Securities Exchange, Information Services, The Exchange Building, 55 Westlands Road, Westlands, Nairobi. Tel: 254-20-2831000, Fax 254-20-2224200, E-mail: [email protected], Website: www.nse.co.ke 2 Nairobi Securities Exchange | Handbook 2013 CHIEF EXECUTIVE’S NOTE The Nairobi Securities Exchange is pleased to present the NSE Handbook 2013. It is an annual publication of the Exchange containing a 5-year financial review of all companies that have listed equity on the Nairobi Securities Exchange. The Handbook has been compiled from the 2012 Annual Reports of all the listed companies. The information contained in the Handbook is intended to serve as a general reference. It does not, by itself, provide answers to all questions which should be asked about listed equities and their prospects. It should prove to be a useful guide for investment decision-making and market analysis. Our aim is to provide retail as well as institutional investors with key management and statistical information that will help them gain a better understanding of the companies in which they have already invested or plan to invest. We trust that you will benefit immensely from the contents of this annual publication of the Nairobi Securities Exchange and your comments and feedback will be highly appreciated. PETER MWANGI CHIEF EXECUTIVE Nairobi Securities Exchange | Handbook 2013 3 Table of Content 6. How To Use This Book 7. Financial Ratios Used In The Book 8. Agricultural Sector 9. Eaagads Limited 12. Kakuzi Limited 14. Kapchorua Tea Company Limited 16. Limuru Tea Company Limited 18. Rea Vipingo Plantations Limited 20. Sasini Tea And Coffee Limited 22. Williamson Tea Kenya Limited 24. Automobiles And Accessories 26. Car And General (Kenya) Limited 30. CMC Holdings Limited 33. Marshalls (EA) Limited 35. Sameer Africa Limited 37. Banking 38. Barclays Bank Of Kenya Limited 41. CFC Stanbic Bank 44. Co-operative Bank Of Kenya 46. Diamond Trust Bank (Kenya) Limited 49. Equity Bank Limited 52. Housing Finance Company Limited 55. Kenya Commercial Bank Limited 57. National Bank Of Kenya Limited 59. NIC Bank Limited 61. Standard Chartered Bank Kenya Limited 64. Commercial And Services 65. Express Kenya Limited 67. Kenya Airways Limited 69. Longhorn Kenya Limited 72. Nation Media Group Limited 74. Scangroup Limited 77. Standard Group Limited 79. TPS Eastern Africa Limited (Serena Hotels) 4 Nairobi Securities Exchange | Handbook 2013 Table of Content 81. Uchumi Supermarket Limited 83. Construction And Allied Sector 84. ARM Cement Limited 86. Bamburi Cement Company Limited 89. Crown Paints Kenya Limited 91. East African Cables Limited 93. East African Portland Cement Company 95. Energy And Petroleum 96. Kenol Kobil Limited 98. Kenya Electricity Generating Company (KENGEN) 100. The Kenya Power & Lighting Co. Limited 102. Total Kenya Limited 104. Umeme Limited 106. Insurance 107. Britam Limited 109. CIC Insurance Limited 112. Jubilee Holdings Limited 114. Kenya Reinsurance Corporation Limited 116. Liberty Kenya Holdings Limited 118. Pan Africa Insurance Company Limited 121. Investment 122. Centum Investment Company (ICDCI) Limited 124. Olympia Capital Holdings Limited 127. Transcentury Limited 130. Manufacturing And Allied 131. Boc Kenya Limited 134. British American Tobacco Kenya Limited 137. Carbacid Investments Limited 139. East African Breweries Limited 142. Eveready East Africa Limited 145. Mumias Sugar Company Limited 147. Unga Group Limited 149. Telecommunication And Technology 150. Accesskenya Group 153. Safaricom 5 Nairobi Securities Exchange | Handbook 2013 How to use this Book While reading this book, kindly remember that various companies have different financial year-ends i.e. March, June, September and December. Therefore, when making comparisons of the different stocks, please take cognizance of this fact. The ratios were derived from the Balance Sheets, Income and Expenditure Statements. However some of the definitions differ from company to company based on the items included or excluded from the calculation. For example, Earnings per Share is the ratio between profit attributable to shareholders and shares in issue. Profit attributable to share holders in some cases includes extraordinary items and general provisions while in others it doesn’t. Some companies have used the weighted average number of shares issued during the year as opposed to shares in issues at one point in time. Taxation item can either be a charge (which is the norm) or a credit. The sign before the taxation value identifies this. Also note that the symbol (-) suggests that the information is not available or undefined while (0) suggests that nothing was allocated. While reading this book, kindly remember that various companies have different financial year-ends. 6 Nairobi Securities Exchange | Handbook 2013 Financial Ratios used In the Book o Current Ratio = Total Current Assets Total Current Liabilities o Earnings Per Share = Earnings Attributable to Shareholders Number of Outstanding Shares o Price-to-Earnings Ratio = Market Price Per Share Earnings Per Share o Dividend Yield = Dividend Per Share Market Price Per Share o Pay Out - Ratio = Dividend Per Share Earnings Per Share o Dividend Per Share = Dividend (Kshs) Paid Total Number of Shares Issued o Market Price to Book Value (Kshs.) = Market Capitalization Net Assets Value o Price-to-Earnings Ratio (P/E) = Market Price Per Share Earnings Per Share o Net Asset Value Per Share (Kshs.) = Total Net Assets Number of Outstanding Shares o Return on Equity = Net income (Profit After Tax). Equity 7 Nairobi Securities Exchange | Handbook 2013 Agricultural Sector 8 Nairobi Securities Exchange | Handbook 2013 EAAGADS LIMITED EAAGADS LIMITED COMPANY NAME: Eaagads Limited PHYSICAL LOCATION: Ngenda Road, Ruiru CHAIRMAN\LADY’S NAME: Mr. Lucas A. Omariba CHIEF EXECUTIVE’S NAME: Mr. C.J Coote NAMES OF OTHER DIRECTORS: Mr. Fabian Philippart, Mr. D C A Harries COMPANY SECRETARY: Mr. John L.G Maonga AUDITORS: Deloitte & Touche COMPANY BRIEF: The principal activity of the company is growing and selling of coffee. 9 Nairobi Securities Exchange | Handbook 2013 FINANCIAL REVIEW OF THE GROUP BALANCE SHEET ( Kshs ‘000’) 31-March 2012 2011 2009 2008 Assets Employed Non Current Assets 488,369 268,119 218,174 216,752 Current Assets 84,987 86,803 41,887 60,037 Current Liabilities 4,530 14,604 6,250 25,606 Net Current Assets 80,457 72,199 35,637 34,431 Total Net Assets 568,826 340,318 253,811 251,183 Financed By Share Capital 20,098 20,098 20,098 10,049 Reserves * 180,965 246,147 174,363 182,623 Revaluation Surplus 280,386 - - - Proposed Dividends - - - - Shareholders' Funds 481,449 266,245 194,461 192,672 Non Current Liabilities 87,377 74,073 59,350 58,511 Total Financing 568,826 340,318 253,811 251,183 Turnover 157,075 184,597 120,298 71,259 Profit/(Loss) Before Taxation 36,178 101,480 16,830 42,960 Taxation (Credit/Charge) (14,373) (29,696) (4,992) (13,274) Net Profit 21,805 71,784 11,838 29,686 Financial Ratios Current Ratio 18.76 5.94 6.70 2.34 Earnings/(Loss) Per Share 1.36 8.93 1.47 3.69 Net Asset Value Per Share 35.38 42.33 31.57 31.24 Price To Earnings Ratio 25.07 7.78 24.45 9.88 Dividend Yield % 3.68 1.80 1.74 0.00 Pay-Out Ratio % 92.17 14.00 42.44 0.00 Price To Book Value 0.96 1.64 1.14 1.17 Market Information Dividends Per Share 1.25 1.25 0.63 - Share Price As At 31 March. 34.00 69.50 36.00 36.50 Number Of Shares In Issue 16,078,500 8,039,250 8,039,250 8,039,250 Market Capitalization 546,669,000 558,727,875 289,413,000 293,432,625 Note: (*) Shows Revaluation And Revenue Reserve 10 Nairobi Securities Exchange | Handbook 2013 PRODUCER OF QUALITY: AVOCADOS, PINEAPPLES, TREATED POLES, LIVESTOCK, HALAL MEAT Kakuzi Ltd is an Agro-Industrial enterprise located in Makuyu in Thika and Maragwa District of Central Province, in the Republic of Kenya Freshness, taste, appearance and value are the key criteria for Kakuzi as a producer and no product that falls below these high quality standards is acceptable. Personnel at all levels in the business have a high level of commitment and technical competence to ensure the safety of the consumer. Comprehensive and effective traceability systems are in place and an essential part of the food safety management system. Kakuzi Ltd abides by the principle of “wise use” agriculture through education and hands on practical management. It also appreciates its non-commercial as well as commercial relationships which include Corporate Social Responsibility, Ethical investing, philanthropy, resource management and community social investment. This is emphasized by the various accreditations such as GlobalGAP, ISO 22000 and Tesco Nurtures Choice on the Avocado operation. Kenya Bureau of Standards Diamond Mark for pressure treated forestry products. TO PLACE YOUR ORDER, PLEASE CONTACT: Kakuzi Ltd Tel: +254 20 2184100/11, Fax: +254 60 2031394 PO Box 24 Thika, 01000 Punda Milia Road, Thika , Kenya Email: [email protected] Website: www.kakuzi.co.ke 11 Nairobi Securities Exchange | Handbook 2013 KAKUZI LIMITED KAKUZI LIMITED COMPANY NAME: Kakuzi Limited PHYSICAL LOCATION: Main Office, Punda Milia Road, Makuyu CHAIRMAN\LADY’S NAME: Kenneth W Tarplee CHIEF EXECUTIVE’S NAME: Christopher J Flowers NAMES OF OTHER DIRECTORS: Graham H Mclean, Ketan R Shah, Nicholas Nganga Christopher J Ames, Daniel M Ndonye, Stephen N Waruhiu COMPANY SECRETARY: John L G Maonga AUDITORS: Pricewaterhousecoopers COMPANY BRIEF: The principal activities of the company comprise the cultivation of tea, growing, packing and selling of avocados, livestock farming, growing and selling of pineapples, forestry and macadamia development.