Kenyan based Real Estate firm, Cytonn Investments has made public its Unaudited financials for the 10 month period ended 31st October 2016.
Income without fair value gain and other income is (negative) Sh -149.5 Million.
Increase in non-current assets by 58% means Cytton is capitalizing a lot. what is being capitalized is really not clear. Expenses that have a huge dent on income are just some of those items that can be capitalized and amortized slowly.
Lately this revalued gains seem to have hit a lot of NSE listed companies agriculture stocks, Housing finance and especially Centum Investments.
Safe to say that if Cytonn’s cashflow was published it would be deep in the red worse than the income statement. The 448.6m stated as income is not a true picture of the underlying business earning power which is far worse.
Highlights
Sales Up 59%
Finance cost up 15% while Receivables shot up 29%
Inventory up 60%
Operating expenses up 78%
Employee cost 59% of revenue
Operating expenses 65% of revenue
Debt up 51%
