Red Star Express

[driller4real]

Originally Posted by emmanuel ewumi

Who is the registrar of Red Star Express.

Intercontinental Registrars Limited

[zainabusman]

RED STAR EXPRESS PLC AUDITED FINANCIAL STATEMENT FOR
THE YEAR ENDED MARCH 31 2009 GROUP RESULT
2009 2008
TURNOVER N3.959b N3.09b
PROFIT BEFORE TAXATION N459.769m N305.544m
TAXATION (N211.484m) (N109.861m)
PROFIT AFTER TAXATION N248.285m N195.683m
BALANCE SHEET INFORMATION
FIXED ASSETS N680.640m N647.865m
STOCK N33.987m N42.588m
TRADE DEBTORS N1.032b N658.646m
CASH AND BANK BALANCES N162.232m N182.653m
OTHER DEBIT BALANCES N442.181m N437.404m
TRADE CREDITS N104.501m N109.567m
SHORT TERM BORROWINGS N17.028m N11.965m
OTHER CREDIT BALANCES N951.142m N670.015m
WORKING CAPITAL N743.425m N662.846m
NET ASSETS N1.278b N1.177b
CORPORATE ACTIONS PROPOSED DIVIDEND 30 KOBO PER SHARE
AGM DATE THURSDAY AUGUST 20 2009 VENUE:WELCOME
CENTER AND HOTELS LIMITED
INTERNATIONAL AIRPORT ROAD MAFOLUKU LAGOS AT 11.00AM
CLOSURE OF REGISTER AUGUST 10 TO 13 2009 PAYMENT
DATE AUGUST 27 2009

[eniyanman]

Originally Posted by zainabusman

RED STAR EXPRESS PLC AUDITED FINANCIAL STATEMENT FOR
THE YEAR ENDED MARCH 31 2009 GROUP RESULT
2009 2008
TURNOVER N3.959b N3.09b
PROFIT BEFORE TAXATION N459.769m N305.544m
TAXATION (N211.484m) (N109.861m)
PROFIT AFTER TAXATION N248.285m N195.683m
BALANCE SHEET INFORMATION
FIXED ASSETS N680.640m N647.865m
STOCK N33.987m N42.588m
TRADE DEBTORS N1.032b N658.646m
CASH AND BANK BALANCES N162.232m N182.653m
OTHER DEBIT BALANCES N442.181m N437.404m
TRADE CREDITS N104.501m N109.567m
SHORT TERM BORROWINGS N17.028m N11.965m
OTHER CREDIT BALANCES N951.142m N670.015m
WORKING CAPITAL N743.425m N662.846m
NET ASSETS N1.278b N1.177b
CORPORATE ACTIONS PROPOSED DIVIDEND 30 KOBO PER SHARE
AGM DATE THURSDAY AUGUST 20 2009 VENUE:WELCOME
CENTER AND HOTELS LIMITED
INTERNATIONAL AIRPORT ROAD MAFOLUKU LAGOS AT 11.00AM
CLOSURE OF REGISTER AUGUST 10 TO 13 2009 PAYMENT
DATE AUGUST 27 2009

Good result... It's becoming obvious that the service sector companies are the big winners in this 'crisis'.

[zainabusman]

Originally Posted by eniyanman

Good result... It's becoming obvious that the service sector companies are the big winners in this 'crisis'.

Although as is becoming usual for Redstar a loss was made in the final qtr. For 9 months they had PAT of N257 million. Meanwhile PAT for full year is N248.3 million.

[123.rado]

Originally Posted by zainabusman

RED STAR EXPRESS PLC AUDITED FINANCIAL STATEMENT FOR
THE YEAR ENDED MARCH 31 2009 GROUP RESULT
2009 2008
TURNOVER N3.959b N3.09b
PROFIT BEFORE TAXATION N459.769m N305.544m
TAXATION (N211.484m) (N109.861m)
PROFIT AFTER TAXATION N248.285m N195.683m
BALANCE SHEET INFORMATION
FIXED ASSETS N680.640m N647.865m
STOCK N33.987m N42.588m
TRADE DEBTORS N1.032b N658.646m
CASH AND BANK BALANCES N162.232m N182.653m
OTHER DEBIT BALANCES N442.181m N437.404m
TRADE CREDITS N104.501m N109.567m
SHORT TERM BORROWINGS N17.028m N11.965m
OTHER CREDIT BALANCES N951.142m N670.015m
WORKING CAPITAL N743.425m N662.846m
NET ASSETS N1.278b N1.177b
CORPORATE ACTIONS PROPOSED DIVIDEND 30 KOBO PER SHARE
AGM DATE THURSDAY AUGUST 20 2009 VENUE:WELCOME
CENTER AND HOTELS LIMITED
INTERNATIONAL AIRPORT ROAD MAFOLUKU LAGOS AT 11.00AM
CLOSURE OF REGISTER AUGUST 10 TO 13 2009 PAYMENT
DATE AUGUST 27 2009

About 46% of PBT as tax? Is this usual or was there a deferred tax?

[eniyanman]

Originally Posted by zainabusman

Although as is becoming usual for Redstar a loss was made in the final qtr. For 9 months they had PAT of N257 million. Meanwhile PAT for full year is N248.3 million.

I think you are correct... This is not uncommon with some businesses.. Airlines typically run at a loss or significantly lower earnings during the winter season. Unfortunately, Red Star can't close shop in the 4th quarter if they want to continue to do business.

[Catweasel]

Originally Posted by eniyanman

I think you are correct... This is not uncommon with some businesses.. Airlines typically run at a loss or significantly lower earnings during the winter season. Unfortunately, Red Star can't close shop in the 4th quarter if they want to continue to do business.

I cannot really understand why RSE would have any real downturn in their business in the months Jan to Mar, neither business nor the requirement to deliver packages really slows during that period.

I am certainly interested to find what is behind the extraordinarily high level of taxation.

I also get concerned when we see big swings between the unaudited interims and the audited FYE. Makes you wonder about over-exhuberance in the publishing of interim reports.

[eniyanman]

Originally Posted by Catweasel

I cannot really understand why RSE would have any real downturn in their business in the months Jan to Mar, neither business nor the requirement to deliver packages really slows during that period.

I am certainly interested to find what is behind the extraordinarily high level of taxation.

I also get concerned when we see big swings between the unaudited interims and the audited FYE. Makes you wonder about over-exhuberance in the publishing of interim reports.

Frankly, I don't know... May be that's when they pay franchise fees. However, most businesses generally don't get into full swing early in the new year.

I share your concerns regarding swings. With RSE, this is (becoming) predictable and so doesn't really matter.

[zainabusman]

Originally Posted by 123.rado

About 46% of PBT as tax? Is this usual or was there a deferred tax?

The "negative" PAT in the last qtr can now be explained from the tax angle. For the 9 months Dec 2008, the tax rate used was 30%. Meanwhile for the full year, a tax rate of 46% was charged.

High tax rate was also charged in 2008 (35.6%) and 2007 (46.8%). Normal corporate tax is 32%. So why this high tax? Anyway we will know more when we get the full accounts.

[knightofdelta]

I bought this stock at N5.50 in 2007 and sold at N3.00 early this year but it never left my radar. I accumulated at N2.00 and I have finally recouped all my losses. This is staying in my retirement portfolio. The dividends they keep paying means they are doing really well.

[horlads]

RSE is looking like a long term bet. 30k dividend is good harvest for shareholders. i might hav to look for an interesting entry pt after mark down

[forumasto]

Originally Posted by horlads

RSE is looking like a long term bet. 30k dividend is good harvest for shareholders. i might hav to look for an interesting entry pt after mark down

Definitely.. My sentiments exactly.

[amajike]

Originally Posted by 123.rado

About 46% of PBT as tax? Is this usual or was there a deferred tax?

Originally Posted by zainabusman

The "negative" PAT in the last qtr can now be explained from the tax angle. For the 9 months Dec 2008, the tax rate used was 30%. Meanwhile for the full year, a tax rate of 46% was charged.[/I]

This high tax rate would certainly affect the bottom-line paid to us investors and I'm also concerned because after paying a handsome dividend of 30k what earnings would they retain for futher growth?

[zainabusman]

Originally Posted by amajike

This high tax rate would certainly affect the bottom-line paid to us investors and I'm also concerned because after paying a handsome dividend of 30k what earnings would they retain for futher growth?

They made 42 kobo per share. So they have retained about 28.6%. This i believe is enough. Sometimes when management is left with too much cash there is a tendency to waste it.

Until we see the full accounts it is difficult to understand the reason for such a high tax rate.

[knightofdelta]

Originally Posted by amajike

This high tax rate would certainly affect the bottom-line paid to us investors and I'm also concerned because after paying a handsome dividend of 30k what earnings would they retain for futher growth?

The 50% dividend growth of RSE in a downturn both in the capital market and the economy is tremendous. The company could have conveniently paid the same amount they paid last year and keep the remaining cash but they are either very sure of their cash flow in the next financial year or they have so much, they don't know what to do with it.

A company with a strong cash flow like this is an investors haven, paying more dividends than the likes of Oceanic, Sterling bank, Fidelity bank, WAPCo, etc. This is a future blue chip stock and once the train starts moving, there will be a lot of regret. I am not selling this one in a long time, not even for profit taking.

[amajike]

Originally Posted by knightofdelta

The 50% dividend growth of RSE in a downturn both in the capital market and the economy is tremendous. The company could have conveniently paid the same amount they paid last year and keep the remaining cash but they are either very sure of their cash flow in the next financial year or they have so much, they don't know what to do with it.

A company with a strong cash flow like this is an investors haven, paying more dividends than the likes of Oceanic, Sterling bank, Fidelity bank, WAPCo, etc. This is a future blue chip stock and once the train starts moving, there will be a lot of regret. I am not selling this one in a long time, not even for profit taking.

I logged out of this stock for profit taking and made some good cash, entered ealier this year at 2.41 and sold at 3.91.

My eyes are firmly fixed on it as I would still re-enter when it drops enough.
Very good stock, strong fundamentals and not many shares in issue.

[londoncool]

Is it too late to enter this stock at N2.95 ?

[nosa2]

Originally Posted by londoncool

Is it too late to enter this stock at N2.95 ?

in my opinion its not, i was shocked to see the price drop below N3 (thanks to margin loan wahala) and i placed an order for tomorrow that would dwarf my current holdings in the company, looking forward to spend my 10% cheque.

[pumping]

Originally Posted by nosa2

in my opinion its not, i was shocked to see the price drop below N3 (thanks to margin loan wahala) and i placed an order for tomorrow that would dwarf my current holdings in the company, looking forward to spend my 10% cheque.

Just remember this quote

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price"

Warren Buffett

[twentypercent]

Originally Posted by londoncool

Is it too late to enter this stock at N2.95 ?

from the way the market seems to be responding to news these days i will advise you hold on to your cash and wait for a definite signal on the direction things will go, cash at hand is the watchword these days....believe me!