Centum H1 net profit up 55pc, costs rally

Listed investment firm Centum has posted a 55 per cent growth in half year net profit buoyed by a surge in investment income which grew by nearly three and a half times to Sh8.4 billion.

The company’s after-tax earnings for the six months to September increased to Sh1.9 billion from the Sh1.23 billion it posted during a similar period last year.

Centum’s earnings were significantly boosted by investment and other income which grew by 342 per cent from the Sh1.9 billion it had posted in six months to September 2014.

“The performance was against a very challenging investment environment with a depressed stock market, rising interest rates and a general decline in economic growth” the company said in a statement.

“That notwithstanding, we recorded good performance with the book value of shareholder wealth (net asset value) growing by nine per cent to S4.7 billion.”

The company closed the period with a total assets of Sh77.6 billion and liabilities of S8.1 billion, driven mainly by the recently issued Sh6 billion bond.

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Centum’s significant jump in investment income offset high operating and administration costs which increased by Sh4.4 billion to Sh5.06 billion and finance costs which went up by about Sh1 billion to Sh1.3 billion.

Centum has interests in real estate projects, listed firms, private equity and electricity generating plants, among others.

“Our focus is to be an institutional developer of investment grade opportunities in eight sectors. We have developed a health proprietary pipeline of opportunities that will make a significant contribution to shareholder wealth when they are realised,” the company said.

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