East Africa’s investment firm Centum booked 226 percent jump in net profit to KSh6.79 billion for half year 2019/20, driven by the disposal of Almasi and Nairobi bottlers.
The Group’s realised a net gain of Ksh12 billion from the disposal of its stakes the two companies. The two projects had an initial cost of KSh3.4Bn.
Dividend income rose up to 44.9 percent to Ksh 0.4 billion attributed to a return to profitability by Sidian Bank Ltd following robust non-funded income through growth in the trade finance business.
James Mworia, Group CEO said, “We have higher cash now that has been deployed in fixed income securities that was not there previously. So previously we were probably earning 400 million shillings in dividends. That will be replaced by a higher investment income of about a billion shillings.”
"Our profit was driven by the gains on disposal and impairment provision, primarily in Amu Power"
@S_KariukiG#CentumHY2020 pic.twitter.com/UnwwnbvCs1— Centum Investment (@CentumPLC) November 28, 2019
The bank recently closed a Ksh 2.0 billion facility with the Dutch Entrepreneurial Development Bank (FMO).
James Mworia, Group CEO of the Investment firm said going forward, the strategic focus of the portfolio will be to enhance its ability to generate significant and consistent cash flow for the Group.