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Centum net profit increases 27.49pc

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Centum CEO James Mworia. FILE PHOTO | NMG 

Investment firm Centum has reported a 27.49 percent increase in profit after tax in the six months to September.

The investment firm reported a Sh2.07 billion profit up from Sh1.63 billion over a similar period last year.

Centum completed disposal of the company’s stake in GenAfrica Asset Managers Limited which saw it book Sh1.2 billion.

The company’s Private Equity business reported a 300 percent profit growth to Sh1.5 billion from Sh513 million recorded last year.

In a statement released Sunday, the company said that “all of Centum’s four business units recorded a robust performance in the period”.

“In the Real Estate Business Unit, revenue potential for pre-sales achieved was Sh1.8 billion as at September 30, 2018, with a corresponding profit potential of Sh460 million,” the statement read.

The firm is engaged in the Two Rivers Development in Nairobi, Vipingo Development in Kilifi and Pearl Marina Development in Uganda.

The Marketable Securities unit held a portfolio of Sh3.5 billion, which recorded a realised cash investment income of Sh130 million over the past six months. The company’s portfolio comprises Sabis International School- Runda, two energy projects and an agribusiness.

Total assets increased from Sh66 billion as at March 32, 2018 to Sh67 billion as at September 30, 2018.

The company closed the half-year period with a cash balance of Sh1 billion.

“The company’s debt service capacity remains strong with Debt Service Coverage Ratio (DSCR) consistently above the minimum level set under its various debt covenants,” said Centum Group CEO James Mworia in a statement.

This half-year profit marks a recovery for the company compared to the losses it suffered in the same period last year when its subsidiary Sidian Bank was hit by interest rate caps.

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