This archive report was first published on 28 November 2019.
Centum Investment has reported a significant increase in profits, driven by the sale of assets and cost-cutting measures. According to the company's financial results, the net profit for the six months ended September 30 stood at Sh6.8 billion, a 200 per cent jump from the Sh2.08 billion recorded in a similar period last year.
Group Chief Executive James Mworia attributed the profitability to Sh2.6 billion gains from the disposal of Almasi and Nairobi Bottlers, as well as savings of up to Sh990 million after repaying a Sh11.3 billion loan and reducing operating costs.
The company has also made progress in reducing its debt, with creditors including Rand Merchant Bank owed Sh7.6 billion. Centum aims to retire all debt by June 2020, with the total debt standing at slightly over Sh14 billion.
Boasting assets worth Sh103.7 billion, the firm has also realised more than Sh8.4 billion from its private equity business. The company's real estate portfolio, which comprises more than 50 per cent of total assets, brought in Sh6.05 billion from the sale of more than 800 units.
However, the net asset value per share dropped by four per cent on account of impaired assets and dividend payouts. The group held Sh2.8 billion in marketable securities.
