Centum Investment, the giant investment company, has reported a Kes1.37 billion full-year net loss for the period that ended on 31st March 2021, compared to a net profit of Kes 4.6 billion in March 2020. The investment company attributed the loss to the adverse effects of COVID-19.
Centum posted a Kes 875 million profit from its real estate business, Kes 330 million profit from its financial services business, a Kes 529 million loss from its trading business, and a Kes 1.9 billion loss from its Two Rivers Development.
The group’s total assets grew by 7% to Kes 109.4 billion from Kes 101.9 billion the previous year, supported by increased investments in marketable securities. Total liabilities increased to Kes 61.5 billion from Kes 52.6 billion in the same period last year.
Speaking during the investor briefing, Centum CEO James Mworia said that in the last financial year, the company faced several challenges that affected its bottom line. Centum‘s biggest hurdles were its loss-making subsidiaries like Longhorn Publishers and Two Rivers Development Limited, which booked Kes1.9 billion due to high finance costs associated with the development.
“The boards of Two Rivers Development Limited (TRDL) and Two Rivers Lifestyle Centre (TRLC) have initiated steps to restructure the balance sheets in order to reduce the interest-paying debt and significant progress towards this objective has been made,” the company said in its financial statement.
Centum Investment Dividend and Outlook
Centum Investment Company Plc shareholders are set to get a Kes 218 million dividend payout for the financial year ended March 31 2021.
The dividend payment is pegged on a Kes 245 million operating profit that the company recorded in the year.
“The dividend is intended to cushion our shareholders from the effects of the difficult economic conditions while allowing the company to retain liquidity,” Chief Executive James Mworia.
The giant investment company said it expects to return to profitability in this financial year. “We have witnessed a strong recovery in performance across our portfolio companies and we hope that this recovery will not be interrupted by any unforeseen external economic shocks,” the company noted in its financial report.
The investment company also noted that it decided to pay down the debt on the company balance sheet and increase the marketable securities portfolio has remarkably improved its resilience and enhanced its liquidity position enabling Centum to take advantage of opportunities as they emerge.