Nairobi Securities Exchange listed Centum Investment (NSE; ICDC) has reported a decline of 16 per cent in profit after tax to Ksh 8.3 billion in year ended 31 March 2017. The decline was on the back of lower gains on disposal compared to the previous period.
There was an overall growth of 76 percent in the trading profit of its beverage, utilities and publishing business.
On the other hand, the operating profit of the group’s financial services dropped significantly by 67 per cent, mainly affected by Sidian Bank’s performance. Centum’s asset management arm, Nabo Capital recorded a 27% decline in operating profit.
The group’s realized gains on disposal of investments decreased by 81 per cent compared to the prior financial year where;
- Centum had partially disposed off its stake in Two Rivers Mall reducing its holding to 50% and booking a gain of Sh 3.2 Billion.
- In the same Year, Centum completed the exit in AON Insurance brokers and disposed a portfolio of listed equities, in total realizing a gain of Sh 1.7 Billion.
In the current financial year,
- Centum completed an exit of its 26.43 per cent in Kenya Wines Agencies, realizing a gain of Sh 1.1 Billion.
- The Group also partially exited its stake in Platcorp Holdings Ltd through the sale of an 8 per cent stake, booking a gain of Sh 432 Million.
Accordingly, the group’s realized gains declined from Sh 5.42 Billion in 2016 to Sh 1.03 Billion in 2017. However, other investment income increased by 11 per cent over the period under review.
Despite the drop, the company recommended a dividend payout of Sh 1.2 per share, representing an increase of 20 per cent compared to the previous year.
In the current FY, Centum Says it Deployed Sh 5.5 Billion in Debt & Equity Expenditure. Sectoral analysis of the ?? https://t.co/ySFFiO5Vv3 pic.twitter.com/oHQe16jB43
— Kenyanwallstreet (@kenyanwalstreet) June 13, 2017
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