Centum Half Year Earnings Up 27% on PE Unit Growth

Centum Investment Company Limited (NSE: ICDC) announced its first half of the year results, recording a 27% y/y jump in net profit to Ksh2.08 billion. This was mainly driven by an 85.8% y/y rise in investment income to Ksh4.09 billion.

Notable, all business units posted robust performance in the 1H19 period. Private equity business reported a 300% profit growth on the back of improved performance from Sidian bank, Longhorn publishers and the completion of the disposal of GenAfrica Asset managers which realized a gain of KES 1.2bn.

The real estate unit which is currently focusing on Two Rivers development, Vipingo development and Pearl Marina development, gained traction with revenue potential for pre sales and land development sales at Ksh1.8 billion as at September 2018.

On other hand, marketable securities with a portfolio of Ksh3.5 billion realised investment income of Ksh130 million in the 1H19 period. The Portfolio has a defensive allocation with higher weighting toward fixed income and cash to preserve value in turbulent markets.

We highlight that the company is on track on the development portfolio which comprises the power sector, education and agribusiness. Total assets grew by 1.3% from Ksh66 billion to Ksh67 billion on increased value on its property portfolio. The share price has lost 40% year-to-date to close at Ksh26.25 on Friday.

Centum Investments Group to raise between Ksh40 billion and Ksh50 billion in a fresh PE fund to cut finance costs from expensive borrowings. pic.twitter.com/SXxN37di7p

— Kenyanwallstreet (@kenyanwalstreet) November 27, 2018