How Centum managed to push profit 27% up-to Ksh2.07 billion

How Centum managed to push profit 27% up-to Ksh2.07 billion

NAIROBI, KENYA, NOVEMBER 27 — Investment firm-Centum has posted a 27.5 per cent jump in after tax profit for the six months period ended September 30.

The Group recorded a consolidated net profit of Ksh2.07 billion up from Ksh1.63 billion it had a similar period in the prior year, on the back of a strong investment income performance.

The Private Equity business recorded a Ksh1.5 billion consolidated operating profit for the period ended September 30, 2018.This represented a 300 per cent increase over the Ksh513 million recorded for a similar period in 2017.

During the period, the Group completed the disposal of GenAfrica Asset Managers Limited, realising a gain of Ksh1.2 billion.

“Through this transaction, the Group achieved a holding period IRR (Internal Rate of Return) of 29 per cent for the investment, demonstrating our track record in growing shareholder wealth through an optimal investment strategy, portfolio management and successful exits ,”CEO James Mworia said in a statement.

Consolidated dividend income received from portfolio companies where the Group holds minority stakes also increased by 60 per cent.

Sidian Bank Limited, which falls within this business unit, has seen significant improvement in its performance compared to the prior year. The bank’s focus on growing its non-funded income through growth in trade finance business has seen non-funded income increase by 68 per cent compared to a similar period in 2017.

Notably, non-funded income was higher than net interest income during the period while trade finance balances have grown by 700 per cent over the last 12 months, demonstrating the successful implementation of the bank’s new strategic focus.

The bank has also recorded a 15 per cent growth in both total assets and customer deposits over the last six months.

“To support this growth, we recapitalised the bank in 2018 through a full subscription to its Ksh1.2 billion rights issue. The bank’s strong capital base, balance sheet and trade finance book now provide it with a strong platform for growth and it is expected to return to profitability in the next financial year,” the management noted in its financial statement through the Nairobi Securities Exchange.

Longhorn Publishers Limited, a business Centum has a controlling stake in, recorded a 168 per cent growth in profitability over the period to September 30, 2018, driven by a strong top line performance, Centum noted.The beverage business-Almasi Beverages Limited, however recorded lower volumes as a result of distribution chain disruptions during the heavy rains experienced in the […]

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