Covid-19: Impact: Centum Warns Profit Would Dips 25% for FY20

East Africa’s investment firm Centum says it expects the coronavirus pandemic and lower disposal of investments to hit profit for the financial year ending March 31 2021.

East Africa’s investment firm Centum says it expects the coronavirus pandemic and lower disposal of investments to hit profit for the financial year ending March 31 2021.

The company says its earnings would be at least 25% lower than the net profit recorded a year ago.

In a statement Wednesday, Centum attributed the expected decline to the absence of gains on disposal for the year compared to the previous financial year when they registered KSh12.5 billion gains on disposal of investments.

“Our private equity business segment holds investments in various sectors, some of which were significantly affected by the Covid-19 pandemic especially in the first half of the financial year,” said the firm in a statement signed by the company secretary, Mwangi Mbogo.

In its half-year results from April 1 2020 to September, Centum made a net profit of KSh95million from a loss of KSh1.6billion in the same period in the previous year.

It disclosed that its real estate subsidiary maintained strong sales and cash collection level during the period.

“Centum completed land sales in this financial year and booked approximately KSh2 billion in revenue at a significant value uplift,” the company said. 

“Although the transactions significantly boosted Centum’s cash flows, the company said that they had minimal impact on profitability “because the transactions were done at approximately the carrying value which was based on the most recent market valuation”.

Centum Real Estate’s properties currently under construction within the Two Rivers Residential District are Loft Residences, Riverbank Apartments and Cascadia Apartments, in addition, to its mixed-use developments in Vipingo, Kilifi and Entebbe in Uganda.

Other developments in Nairobi include the 365 Pavilion Place Apartments in Ruaraka and the 265 Elmer One in Kasarani, both falling under the affordable node program.

The cumulative pre-sales represent 1,322 units out of a total of 3,093 houses either under construction or market-validation.

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