Centum Investment bets on dividends for better second half
Centum Investment Company expects a better second half performance, lifted by a resumption in dividend payments from some of the companies it has shares in, its chief executive said after it posted a first-half loss.
Centum swung to a loss in the six months to September 30 due to pandemic-induced market uncertainty, though the lean performance was offset by its cash and marketable securities holdings.
The company, which owns shares in listed and non-listed companies in manufacturing, banking and publishing, had a pre-tax loss of Sh2.05 billion ($18.67 million) in the first half from a Sh7.72 billion profit in the same period last year.
Chief Executive James Mworia said the company expected an improvement in the second half.
“We have received dividends from portfolio companies, so that should be an improvement,” Mr Mworia told a virtual news conference.
“In the second half we have seen an improvement in the operating performance of the subsidiary companies. So we are seeing it will (be) better than the first half,” he said, but gave no further details.
Centum said income for the six months ended September 30 fell to Sh433.5 million from Sh12.4 billion last year.
The company said earlier it was confident it would withstand the effects of the Covid-19 pandemic, due to its holdings in cash and marketable securities and minimal exposure to listed firms.
In the period under review, its cash and marketable securities stood at Sh8.3 billion, with most of it invested in fixed-income securities.
Centum was expected to get a lift from its real estate business over the next three years, when it realises sales worth Sh4 billion, with about half of that being profit. In the last six months, Centum Real Estate recorded sales of Sh1.7 billion and collected Sh650 million .Centum is closely watched by investors as it offers exposure to opportunities such as shopping mall developments and listed and unlisted companies across East Africa.Reuters