Centum Group CEO James Mworia during a past investor briefing/ Centum has slid into a Sh1.9 billion loss after tax for the six months to September, amid a tumble on investment and other income which fell by 95.5 per cent.
This is from a Sh6.7 billion profit after tax in a corresponding period last year.
The Group which has interest in listed and non-listed entities in real estate, manufacturing, banking and publishing, has termed the half-year as an “extremely challenging one against a backdrop of Covid 19.”
It has cited economic uncertainty and disruption to business occasioned by the pandemic.
During the period, the group’s consolidated comprehensive income reduced from Sh6.6 billion last year, to a loss of Sh1.7 billion, as the value of investment and other income fell to Sh433.5 million from Sh12.4 billion in a similar period last year.
Last year’s gains were realised from the disposal of beverage assets as well as Sh2.3 billion impairment provision on assets, primarily, Amu Power.
In the current period, no gain on disposal or impairment provision on assets has been recorded.
“The current economic environment has also impacted the performance of several entities within the Group,” Group CEO and managing director James Mworia said, as he remains optimistic of better days ahead.
During the period, Centum Real Estate Limited business was resilient over the impact of Covid-19 on the operating environment, recording sales of Sh1.7 billion and collecting Sh650 million within the same period.
These collections reflect the quality of the collectible amounts on the presold units.
It also launched three developments of residential units, of which one has already been market validated and has now broken ground. The other two developments are under market validation.Centum Investment Company Plc on the other hand has reorganised its real estate business unit into two distinct businesses units: Centum Real Estate Limited, which is a wholly owned subsidiary and the holding company for all wholly owned real estate business; and Two Rivers Development Limited, of which the company holds a 58 per cent stake.Centum Real Estate Limited is pursuing a sales-led development model and is currently constructing 1,482 residential units across three sites, namely Two Rivers Development in Nairobi, Vipingo Development in Kilifi and Pearl Marina Development in Uganda.Of the 1,482 units under construction, 1,086 units, with a revenue potential of Sh9.2 billion had been sold as at September 30, 2020, representing a pre-sale level of 73 per cent.The business has collected over […]