Isuzu East Africa Vehicle Assembly plant staff at work along Mombasa Road in 2018. The firm’s buses conform to the new body building standards, KS 372-2014. FILE PHOTO | COURTESY Centum Group posted a net loss of $12.14 million during the financial year ended March 31, 2021 compared with a net profit of $41.25 million last year, weighed down by declining sales and investment income.
Centum Chief Executive James Mworia told The EastAfrican in an interview that the firm had opted to increase its stake in market securities, which it considers a cash-yielding portfolio that generates recurrent income.
Currently Centum is indebted to the tune of $35.71 million from a high of $142.85 million in 2019.
Centum Investments Ltd has taken a cautious approach in venturing into new business lines as the firm moves to preserve capital in government bonds to cushion it against volatile operating environment that pushed it into loss making territory in the financial year ending March 31, 2021.
The move comes barely a year after the firm, which is majority (30.94 percent) owned by the late businessman Chris Kirubi suspended further private equity (PE) investments over valuation fears related to the Covid-19 pandemic.
Centum Group posted a net loss of $12.14 million during the financial year ended March 31, 2021 compared with a net profit of $41.25 million last year, weighed down by declining sales and investment income.
According to the firm’s audited financial statements, the bulk of the losses in the consolidated statement of comprehensive income was driven by the Two Rivers Development Company (TRDC) Ltd in which Centum holds 58 percent stake. TRDC booked a loss of $16.96 million during the same period.
Centum Chief Executive James Mworia told The EastAfrican in an interview that the firm had opted to increase its stake in market securities, which it considers a cash-yielding portfolio that generates recurrent income. Scaling up
“The purpose of diversification was to find new sources of value. That is the idea. Can I get an opportunity that can create significant value for Centum? All these lenders are willing to lend us for new opportunities but the issue now is finding those opportunities. It is not as easy because if you get a wrong opportunity you lose your money and our idea is not to lose money,” he said.
Centum has increased its investments in government securities to Ksh7.5 billion ($66.96 million) from Ksh4.1 billion ($36.6 million) […]