Centum Investment Half-year Pretax Loss Narrows to Ksh 696.6 Mn

Centum is East Africa's leading investment company listed on the Nairobi Securities Exchange and Uganda Securities Exchange. We are an investment channel providing investors with access to a portfolio of inaccessible, quality, diversified investments.

East Africa’s investment firm Centum recorded a pretax loss of Ksh 696.6 million for its first half ended September.

This is compared with Ksh 2.05 billion loss in the same period a year earlier.

Its trading profit grew from a loss of  Ksh 316.8 million to a profit of Ksh 255.3 million attributed to an improvement in its trading business as sales increased from  Ksh 136.3 million in HY21 to  Ksh 1.2 billion in HY22.

“We have seen improved performance in the first half from the various business segments as they recover and the economy rebounds from the impact of the Covid pandemic,” Centum said in an emailed statement to Khusoko.

“We’re optimistic about the second half of the year as we continue to execute on the recovery plans across the various businesses.”

Centum’s real estate business halved its six-month loss to Ksh 142 million from Ksh 280 million. Two Rivers Development Ltd posted a loss of Ksh 342 million, compared with Ksh 1 billion in the same period 2020.

Its trading business posted a Ksh 255 million profit, compared to a loss of Ksh 317 million in the same period of 2020.

“We expect the recovery to continue into the full year with its trading business and financial service lines bringing in the bulk of growth. We expect Longhorn Publishers and Sidian Bank to continue announcing robust numbers which will bolster up the Group’s performance. With regard to Two Rivers Development Limited (TRDL), we expect sustained recovery as the Group takes up restructuring efforts to reduce interest expenses which weigh heavy on the bottom line. Centum Real Estate (RE) enjoys a healthy cash position and a low net debt position relative to its asset cover (Assets cover debt 8x) which brings the subsidiary’s gearing ratio to 21 per cent.”

“The foregoing coupled with the fact that all project finance debt, including the corporate bond, is covered by escrowed cash means that there is reduced credit risk for investors and significant upside potential as the real estate unit continues its sales efforts.”

The last paragraph is a commentary from Sterling Capital Analysts Earnings Update.