Africa-Press – Tanzania. TCCIA Investment Plc (TICL) announced a higher revenue increase in this year first half thanks to a clear change of an investment strategy that focuses on long-term Treasury bonds.
The fund manager, listed on Dar es Salaam Stock Exchange (DSE), said in its cautionary notice that its revenue in six months to June is expected to be 45 per cent higher than a similar period last year.
“[The company] expects its revenue for the six months ended June to be 45 per cent higher compared similar period in 2020,”TICL said.
According to DSE listing rules companies are required to publish a cautionary notice if they are satisfied that the financial results for the reported period will differ by at least 25 per cent compared to the previous corresponding period. Orbit Head of Research and Analytics Imani Muhingo said TICL has grown its bond portfolio from zero three years ago to 13.6bn/- last year.
“TICL has had a clear change in investment strategy, focusing on long term Treasury bonds,” Mr Muhingo said adding: “The increased interest payment from these bonds has played well into TICL’s coffers”.
Over time TICL has been shifting from equities, lowering its stock portfolio from 26.5bn/- in 2017 to 14.8bn/-. They had losses in 2020, but that was due to a paper loss in the disposal of TBL during the year and despite negative earnings per share (EPS) of 6/- the firm was able to pay a dividend of 6/- per share.
Vertex International Securities Advisory and Capital Markets Manager Ahmed Nganya said TICL issued the cautionary notice to shareholders that H1 results will improve by 45 per cent is a positive thing for investors.
“We expect this information to boost trading in TICL shares in the medium term,” Mr Nganya said yesterday.
Last June, Tanga Cement issued a positive cautionary notice advising their shareholders that operating profit for the first half expected to increase between 220 per cent and 236 per cent higher a similar period in 2019.
Also, Tanga trades as Simba Cement expected that its loss per share for the similar period to be between 75/- per share and85/- per share, being between 45 per cent and 55 per cent lower than its loss per share of 162/- per share for the six months ended June 2019. TICL generated a total income of 814.27m/-in last year’s first half upped from 555.81m/- in a similar period in 2019.
Despite the total income increase, the fund manager ended up making a loss of 1.09bn/- in H1 of last year from a profit of 89.8m/- of a similar period in 2019.
