Centum Holdings has posted a half-year net loss of KSh 2 billion, the biggest loss in the company’s history, and a huge shift from the KSh 6.8 billion net profit reported in the first half of 2019. The effects of covid19 pandemic severely affected the company’s investments in real estate, private equity, and marketable securities.
The firm’s revenue from the trading business fell to KSh294.9 million from KSh4.78 billion in the same period in 2019. Investment and other income for the period fell to KSh433.5 million from KSh12.4 billion in September 2019.
Centum has three business units namely: Real estate, Private Equity, and Marketable securities. The real estate unit performed relatively well. The business collected KSh 2.6 billion in cash deposits and has a collectible KSh of 6.6 billion from the sale of 1,086 residential units under construction as at 30 September 2020.
“Centum Real Estate Limited is in the process of completing land sales amounting to Kes 3 billion, which are currently under legal documentation. These sales are expected to be reflected in the financial statements for the year ending 31 March 2021” the company added in its financial report.
The Private equity segment recorded a KSh 1.2 billion consolidated net loss for the period ended 30 September 2020, compared to a net profit of KSh 8.4 billion recorded in a similar period in 2019, thanks to a decline in dividend income from portfolio companies where Centum owns a minority stake.
In the marketable securities segment, Centum held 79% of the KSh8.3 billion in the segment in fixed income securities such as treasury bills and bonds and cash in an attempt to preserve value during this highly uncertain period.
Financial services company AIB-AXYS Africa said in a tweet that they expect improved performance in the coming second half.
