Ikeja Hotels Plc - Any News?

[Apache]

Originally Posted by Michael

Thanks for the info. I had just placed an order for more units of Ikeja Hotels, which I have promptly cancelled. To convince the shareholders to approve a public offer would take some cajoing like a bonus or super dividend, nothing goes for nothing.

I don't think they will have any problems getting approvals from shareholders. I can't say if you made a right or wrong move by cancelling your order since i don't know why you wanted to buy in the first place.
I don't have any interest in this company hence don't have much info. I just saw that info in the papers and thought you all should know. I always believe that it's based on all the info that we know that we all make our decisions, hence the more the info you have, the better you will be at making informed decisions.

[rose]

Originally Posted by Apache

Hope you guys are aware that Ikeja hotels is coming to the market to raise more funds in the near future. price and date have not been fixed however, part of what the shareholders are to approve at the forthcoming AGM is to authrorise the increase in the ... by the creation of XXX shares which can be issued through a public offer at a time deemed fit by the board.
Note that there is no rights issue. this was stated clearly. It was in yesterday's guardian. I don't have the paper now so can't qoute verbatim nor the figures etc.
Just thought you should know

It's on page 16 of The Guardian. The share capital will be increased to N2,000,000,000 (from 1,100,000,000) by the addition of N900,000,000 divided into 1,800,000,000 shares of 50kobo each...

[Apache]

Originally Posted by rose

It's on page 16 of The Guardian. The share capital will be increased to N2,000,000,000 (from 1,100,000,000) by the addition of N900,000,000 divided into 1,800,000,000 shares of 50kobo each...

If you read further down, it says shareholders are to waived their rights for 960million shares to be issue via a public offer

[Abinishio]

House,
Please can someone tell me what AGM is being refered to here.
2007 AGM?, av they released their yr end result? I'm i missing someting.
I've been waiting on thier result all this while.
Please someone advise me.
The last result i seen was Q1'08.
Abeg ohh,
Also, I bought some units at N8.55, i've been so mad that it's fallen this low, I'm thinking now to buy more, at N6+. What do u think?

Worried,
AB

[Abinishio]

Originally Posted by knightofdelta

I have 1.73 billion shares too. I wonder why people are giving wrong information about Ikeja Hotels all the time. I also read in Business Day, that there was a reduction in all their indices for the first quarter. They changed the March 2007 values to March 2008 and vice versa. And they said that was the reason the price had been falling of recent.

I believe that erroneous publication would have increased the selling pressure on the company. I have this gut feeling that this hotel is going to generate wealth for investors very soon. I am going to increase my stake.

Knightof Delta,
Abeg, this error u noted, is it good or bad.
What will be the impact on the price movememnt going forward?
I see some value in this stock for mid-long term too.
Comments pls

Ab

[Michael]

Originally Posted by Apache

If you read further down, it says shareholders are to waived their rights for 960million shares to be issue via a public offer

When did shareholders decide to waive their rights. Has The AGM already been held? This Company seems to be very Inconsistent. They are yet to release their Year End Result of DEC 07 and yet released a Q1 result which was not even fantastic. Do they want to come to the market every year.

I also bought somne Volume at 8.4 but my average price is 7 Plus. It is begining to look like the management of Ikeja Hotel is not up to spec.

[hispy99]

Originally Posted by Michael

When did shareholders decide to waive their rights. Has The AGM already been held? This Company seems to be very Inconsistent. They are yet to release their Year End Result of DEC 07 and yet released a Q1 result which was not even fantastic. Do they want to come to the market every year.

I also bought somne Volume at 8.4 but my average price is 7 Plus. It is begining to look like the management of Ikeja Hotel is not up to spec.

IKEJAHOTEL: YEAR END DEC 31 2007

IKEJA HOTEL PLC, AUDITED RESULT FOR THE YEAR ENDED 31-12-2007

TURNOVER 07 N5.282b, 06 N4.642b

PBTAXATION 07 N1.088b, 06 N852.766m

TAXATION 07 (N390.834m) 06 (N326.822m)

PTAXATION 07 N697.751m, 06 N525.944m

PROPOSED DIVIDEND 10K

CLOSURE DATE JUNE 23 TO 27TH 2008

[Michael]

Originally Posted by hispy99

IKEJAHOTEL: YEAR END DEC 31 2007

IKEJA HOTEL PLC, AUDITED RESULT FOR THE YEAR ENDED 31-12-2007

TURNOVER 07 N5.282b, 06 N4.642b

PBTAXATION 07 N1.088b, 06 N852.766m

TAXATION 07 (N390.834m) 06 (N326.822m)

PTAXATION 07 N697.751m, 06 N525.944m

PROPOSED DIVIDEND 10K

CLOSURE DATE JUNE 23 TO 27TH 2008

I was under the assumption that the maximum corporate tax is 32%> here I see Ikeja paying 37% in 2007 and 35% in 2006.

[hispy99]

Originally Posted by Michael

I was under the assumption that the maximum corporate tax is 32%> here I see Ikeja paying 37% in 2007 and 35% in 2006.

Remember that tax is based on profits as determined by the tax man. This profit is sually different from "accounting" profit.

[anekwlc]

Originally Posted by hispy99

IKEJAHOTEL: YEAR END DEC 31 2007

IKEJA HOTEL PLC, AUDITED RESULT FOR THE YEAR ENDED 31-12-2007

TURNOVER 07 N5.282b, 06 N4.642b

PBTAXATION 07 N1.088b, 06 N852.766m

TAXATION 07 (N390.834m) 06 (N326.822m)

PTAXATION 07 N697.751m, 06 N525.944m

PROPOSED DIVIDEND 10K

CLOSURE DATE JUNE 23 TO 27TH 2008

I do not see this market recovery soon with this type of dividend. People are begining to see the real value of stocks. You can imagine buying a stock for N8 and getting 10k at the end of that year. That stock price shouldn't be more than N2.

[Michael]

Originally Posted by anekwlc

I do not see this market recovery soon with this type of dividend. People are begining to see the real value of stocks. You can imagine buying a stock for N8 and getting 10k at the end of that year. That stock price shouldn't be more than N2.

At N2 somebody will take over the company

[knightofdelta]

Originally Posted by anekwlc

I do not see this market recovery soon with this type of dividend. People are begining to see the real value of stocks. You can imagine buying a stock for N8 and getting 10k at the end of that year. That stock price shouldn't be more than N2.

Ikeja Hotel is not a blue chip stock. It is a growth stock that is fundamentally worth N8.87 going by the results they released. If you factor the equation that growth stocks are risky, by putting the price to book ratio into cognizance, the stock is actually fairly priced at N12.10. Companies like this need to retain their earnings in order to expand, you cannot compare them with the UBAs or the Julius Bergers of this world.

Going by your equation Transcorpse should be worth N0. The shares should be distributed to interested investors for free. Left to me sha, I'd rather pay not to get Transcorpse.

[hispy99]

Originally Posted by knightofdelta

Ikeja Hotel is not a blue chip stock. It is a growth stock that is fundamentally worth N8.87 going by the results they released. If you factor the equation that growth stocks are risky, by putting the price to book ratio into cognizance, the stock is actually fairly priced at N12.10. Companies like this need to retain their earnings in order to expand, you cannot compare them with the UBAs or the Julius Bergers of this world.

Going by your equation Transcorpse should be worth N0. The shares should be distributed to interested investors for free. Left to me sha, I'd rather pay not to get Transcorpse.

KoD,

Why do you think Ikeja Hotel is a growth stock? In my opinion, it's difficult for this company to be a growth stock at this stage, except they are rapidly building out new hotels or expanding existing hotels. Their main hotels are Sheraton Hotels in Abuja and Lagos and Federal Palace Hotel.

The most likely route for them to grow earnings would be to raise prices. The company grew revenue by around 18% YoY based on Q1 results. I would be surprised if they acheive anything higher than a 25% - 30% growth rate. Even their prospectus gives us a hint of this. Revenue and PAT are expected to be roughly ~25% higher for FYE Dec 2008 compared to FYE Dec 2007. If we assume a price of N12, then you would be looking at a PE ~ 26 based on 2008 PAT forecast.

[knightofdelta]

Originally Posted by hispy99

KoD,

Why do you think Ikeja Hotel is a growth stock? In my opinion, it's difficult for this company to be a growth stock at this stage, except they are rapidly building out new hotels or expanding existing hotels. Their main hotels are Sheraton Hotels in Abuja and Lagos and Federal Palace Hotel.

The most likely route for them to grow earnings would be to raise prices. The company grew revenue by around 18% YoY based on Q1 results. I would be surprised if they acheive anything higher than a 25% - 30% growth rate. Even their prospectus gives us a hint of this. Revenue and PAT are expected to be roughly ~25% higher for FYE Dec 2008 compared to FYE Dec 2007. If we assume a price of N12, then you would be looking at a PE ~ 26 based on 2008 PAT forecast.

I did not base my opinion that Ikeja Hotel is a growth stock solely on their financials. The general economic condition is a pointer that Nigeria is an emerging market. The Federal Government has been hammering on expanding the tourism frontier to become a vehicle to drive up the GDP and if that is anything to go by, the likes of Sheraton Hotels and Federal Palace Hotel will have a lot to gain from it as there is potential for a massive increase in turnover.

I have also been able to glean from their financials that they are retaining about 75% of their earnings and they are also thinking of coming to the market to raise more funds. The capital they are amassing will definitely go beyond increase in price of services. They must have had their sights locked on a potential market, which they want to tap into.

It is also worthy of note that the hospitality sector in Nigeria is still in the rudimentary phase compared to some other economies and if there is any company that has the capacity to expand the horizon, it is Ikeja Hotels, not the Hilton Hotels.

[billions]

Originally Posted by knightofdelta

I did not base my opinion that Ikeja Hotel is a growth stock solely on their financials. The general economic condition is a pointer that Nigeria is an emerging market. The Federal Government has been hammering on expanding the tourism frontier to become a vehicle to drive up the GDP and if that is anything to go by, the likes of Sheraton Hotels and Federal Palace Hotel will have a lot to gain from it as there is potential for a massive increase in turnover.

I have also been able to glean from their financials that they are retaining about 75% of their earnings and they are also thinking of coming to the market to raise more funds. The capital they are amassing will definitely go beyond increase in price of services. They must have had their sights locked on a potential market, which they want to tap into.

It is also worthy of note that the hospitality sector in Nigeria is still in the rudimentary phase compared to some other economies and if there is any company that has the capacity to expand the horizon, it is Ikeja Hotels, not the Hilton Hotels.

What advantages have they got over d Hiltons?