MIRA INFORM REPORT

 

 

 

Report Date :

18.08.2008

 

IDENTIFICATION DETAILS

 

Name :

BAMBURI CEMENT LIMITED

 

 

Registered Office :

PO Box 10921, 001000 Nairobi

 

 

Country :

Kenya

 

 

Financials (as on) :

31.12.2007

 

 

Date of Incorporation :

20.07.1951

 

 

Com. Reg. No.:

No. 1752 Nairobi, Kenya

 

 

Legal Form :

Public Company, Limited by Shares

 

 

Line of Business :

Commercial Manufacturer of Cement etc

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

Large

 

Maximum Credit Limit :

USD 2,000,000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

COMPANY REPORTED

 

BAMBURI CEMENT LIMITED

 

 

Principal Address   

 

PO Box 10921, 001000 Nairobi, Kenya

Telephone:                                     +254-20-2710487-9/510/531

Fax:                                              +254-20-2710581/ 2

Email:                                           corp.info@bamburi.lafarge.com

Internet:                                         www.bamburi.lafarge.com

 

 

Established    

 

20-July-1951

 

 

Registration  

 

No. 1752 Nairobi, KENYA

 

 

Legal Form     

 

Public company, Limited by shares

 

 

Stock Listing

 

Listed on the NSE , Nairobi, Code: (BAMB.NR)

 

 

Workforce

 

2007                                                                   

1,200                                                                                        

 

 

Office & Factories  

 

Head offices                                   6th floor, Kenya-Re Towers, Upper Hill, off Ragati Road, Nairobi, Kenya

 

Branches                                       1. Malindi-Mombasa Road, Mombasa

                                                    2. Athi River, Nairobi

 

 

Company Profile 

 

Paid in Capital                               KShs. 1,815,000,000

 

Subscribed Capital                         KShs. 1,815,000,000

 

 

Shareholders     

 

Name                                           Position                          Amount                         Ratio

Mr. Richard Kemoli                         Chairman                                                      

Mr. Michel Puchercos                     President & CEO                                           

Mr. A Sikei                                    Director                                                         

Mr. Henri Nicot                               Director                                                         

Mr. D. Njoroge                               Director                                                         

Mr. Timothy Kaloki                         Director                                                         

Mr. Robert Nyangaya                      Director                                                         

Mrs. Sheila M'Mbijjiwe                    Director                                                         

Mr. R.K Lumbasyo                         Director                                                         

Mr. J.C. Hillenmeyer                       Director                                                         

Mr. S.W. Karanja                           Director                                                         

Mr. Elmor Leo                                Director                                                         

Mr. T. Hadley                                 Director                                                         

MR. K. W. GEORGE                      Director                                                         

MR. T. HADLEY                             Director                                                         

Bancem holdings ltd                       Holding Co.                   265,901,994               73.27%

National social security fund            Shareholder                   57,314,178                 15.79%

other individual shareholders            Shareholder                   18,676,463                 5.15%

Ballobhai Chotabhai Patel               Shareholder                   9,064,741                   2.50%

Barclaytrust Investment Services Ltd                                    Shareholder                3,920,861         1.08%

Insurance Company Of EA Limited  Shareholder                   2,970,000                   0.82%

Kenya Reinsurance Corporation       Shareholder                   2,735,748                   0.75%

Old Mutual Insurance Company       Shareholder                   2,347,740                   0.65%

Total                                                                                 362,931,725               100.00%

 

Credit Opinion

 

Our proposed credit amount of USD 2,000,000 is recommendable

 

 

Affiliated Companies   

 

Company (1)                     BAMBURI SPECIAL PRODUCTS

 

Company (2)                     HIMA CEMENT LIMITED

 

Company (3)                     LAFARGE ECO SYSTEMS

 

 

Management/ Directors    

 

President/ CEO (1)            

Name                                Mr. Michel Puchercos

Work Experience               10 years in this line of business

Remarks                           Top Decision Maker

 

President/ CEO (2)            

Name                                Mr. A Sikei

Work Experience               10 years in this line of business

 

Þ  Top decision maker is the person who has the ultimate authority or power to make important managerial decisions. He/She may or may not be officially registered as a president or an executive director.

 

 

Business Activities 

 

Commercial manufacturer of cement etc

 

 

Terms of payment

 

Buying terms                     30% in cash, 70% on 60 day credit

 

Selling terms                     80% in cash, 20% on 60 day credit

                                       


 

Suppliers   

 

Lafarge

 

 

Customers 

 

Local agencies, Distributors, construction firms and outlets

 

                                       

Recent Sales  

 

KSHS. 22,111,000,000  (2007)

 

 

Exports

 

Sudan, Uganda etc

 

 

Export Ratio  

 

40.0%

 

 

Import Ratio  

 

20.0%

 

 

Domestic Market Share    

 

50.0%

 

 

Banking relationship  

 

Main Banks                     

Barclays Bank

Standard Bank

 

 

Auditors    

 

Deloitte & Touche

 

 

Credit Check of Subject, President & CEO (as of report date)

 

Payment Morale:             In the documents at our disposal nothing adverse has been shown so far.

 

CREDIT RATING:            Financial situation is average.

 

 

COMMENTS

 
Maximum credit we recommend is USD 2,000,000 outstanding at any one time.
 
Exchange Rate        US$ 1 = KES. 67.2


 

CONSOLIDATED BALANCE SHEET

 

 

(In Million KShs.)

 

Year End Results as of 31 December

2007

2006

2005

ASSETS

 

 

 

Noncurrent assets

 

 

 

Property, plant and equipment

9,030

9,395

9,080

Operating lease rentals

9

9

9

Intangible assets

40

56

72

Capital work in progress

1,449

643

350

Investments in subsidiaries

0

1

1

Other equity investments

2,886

2,610

1,803

Goodwill

217

217

217

 

13,631

12,931

11,532

Current assets

 

 

 

Inventories

3,501

2,385

2,027

Trade and other receivables

3,201

1,137

853

Tax recoverable

16

3

-

Cash and cash equivalents

371

2,057

920

 

7,089

5,582

3,800

Total Assets

20,720

18,513

15,332

EQUITY AND LIABILITIES

 

 

 

Capital and reserves

 

 

 

Share capital

1,815

1,815

1,815

Capital redemption reserve

2

2

2

Revaluation surplus

2,786

2,965

2,821

Fair value reserve

2,540

2,264

1,457

Translation reserve

(108)

-70

-338

Retained earnings

7,194

6,041

4,922

Shareholders’ funds

14,229

13,017

10,679

Minority interest

846

719

602

 

15,075

13,736

11,281

Non-current liabilities

 

 

 

Deferred tax

1,951

1,951

1,932

Provision for liabilities and charges

471

368

342

 

2,422

2,319

2,274

Current liabilities

 

 

 

Trade and other payables

2,870

2,187

1,168

Tax payable

120

167

108

Borrowings

112

 -

417

Provision for liabilities and charges

101

84

64

Unclaimed dividends

20

20

20

 

3,223

2,458

1,777

Total equity and liabilities

20,720

18,513

15,332

                                                                                                                                                    


 

INCOME STATEMENTS

 

Year End Results as of 31 December

2004

2005

2006

2007

Sales

15,142

14,393

16,488

22,111

Net Income

1,901

2,155

2,799

3,810

 

 

CONSOLIDATED INCOME STATEMENTS

 

 

2007

2006

 

Kshs'million

Kshs’million

Revenue

22,111

16,488

Other operating income

437

173

Investment income

102

62

 

22,650

16,723

Cost of manufactured/purchased goods

 

 

and related services

(11,768)

(8,429)

Staff costs

(1,827)

(1,581)

Other operating costs

(2,887)

(2,081)

Finance costs-net

(70)

(121)

Depreciation

(636)

(646)

Amortization

(19)

(27)

Profit before taxation

5,443

3,838

Taxation charge

(1,633)

(1,039)

Profit for the year

3,810

2,799


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.43.23

UK Pound

1

Rs.80.89

Euro

1

Rs.63.80

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)         Ownership background (20%)                  Payment record (10%)

Credit history (10%)                 Market trend (10%)                                 Operational size (10%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions