Centum Investment Group reported a consolidated net loss of KSh 7.3 billion according to the audited financial results for the full year ended 31st March 2023. This is compared to a net loss of KSh 2.1 billion over a similar period in 2022.
According to the Group, this decline in performance is attributed to losses made by Two Rivers Development Operations on account of KSh 3.9 billion impairment provision. This is in addition to a steep rise in financial costs.
This consolidated performance aggregates results for the Group’s subsidiaries, associates and joint venture entities. These subsidiaries include Trading Businesses, Financial Services, Real Estate, Two Rivers Development and Investment Operations.
In a statement, the Centum Investment Group CEO and Managing Director Dr James Mworia said the Group’s performance was hugely impacted by purchase of the entire balance sheet of the undeveloped land from Two Rivers International Finance and Innovation Centre(TRIFIC), a wholly owned subsidiary of Centum.
The Board of Directors of Centum has proposed a dividend payout of KSh 400 million with respect to financial year ended 31st March 2023 compared to KSh 391 million. This represents a dividend per share of KSh 0.60 up from KSh 0.59 in the 2022 financial year. This proposal is to be cionsidered at the Centum forthcoming annual shareholders meeting.
“On the cash performance, we recorded an improved performance with profit before the provisions increasing by 111% from KSh 551 million to KSh 1.1 billion, “said Dr Mworia.
In its outlook, the Group said 2024 is the last year of the Centum 4.0 strategy period and that it is optimistic that the key initiatives set out will positively impact shareholder value and returns. For instance, the Group’s total debt load has been reduced by KSh 14 billion from KSh 16.1 billion in March 2019 to KSh 2.2 billion in March 2023.
Operating costs reduced by 10% in 2023 following improved efficiency while 38% cost-to-income ratio was achieved in the financial year ended March 2023 down from 39% in the prior year.
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