Centum Investment Company Kenya 3.0

13
Jun
2017

Nairobi, 13th  March, 2017- Centum Investment Company Plc today announced its audited financial results for the year ended 31 March 2017. 

The Company recorded a 14% growth in the book value of shareholder funds which closed at KES 44.8 billion. This compares favourably with the NSE 20 Share Index, which recorded a 22% decline, representing a 36% outperformance. The Net Asset Value per share has increased from KES 13.8 in 2010 to KES 67.34 as at 31 March 2017, representing an increase of 388% and a compounded annual growth rate of 26% over the last seven years. “The growth in the Net Asset Value per share is reflective of the company’s sustained focus on the preservation and growth of shareholder wealth through different market cycles”, said the Group Chief Executive Officer and Managing Director, James Mworia. On the investment portfolio front, the Company deployed KES 5.5 billion in debt and equity capital expenditure during the financial year within its portfolio companies. The Company’s total assets grew by 19% during the year, to close at KES 61.6 billion.

The Group’s consolidated profit after tax declined by 16% on account of lower gains on disposal of investments compared to the previous period realized gains.   Adjusted for the gains on disposal, the Group’s profit after tax increased by 66% year on year. Other key performance drivers during the year were: 

  • Improved profitability in the Group’s portfolio companies with the beverage business recording a 37% growth in trading profit and the share of associates profits increasing by 25%;    
  • Consolidation of Longhorn Publishers Limited’s financial results for the first time, following acquisition of control in May 2016;           
  • Significant one-off rebranding and restructuring costs incurred by the Group’s banking subsidiary. Performance of the banking subsidiary was also impacted by the interest rate capping regulations; and           
  • Lower finance costs as  a  result of  reduced forex losses  on  US  dollar denominated borrowings and capitalisation of interest during construction of the Group’s real estate projects. 

During the year, the Group sold its 26.4% stake in Kenya Wine Agencies Limited (KWAL), realising a gain of KES 1.1 billion and partially exited its stake in Platcorp Holdings Limited, realising a gain of KES 432 million.