Centum Profits up by 110% to Ksh. 2.2 billion.
Centum Investment Company Limited announced a strong set of results for the year ended March 31st 2011 and declared a 1 for 10 bonus share issue. The Company also announced intentions to cross list its shares on the Dar es Salaam Stock Exchange and Rwanda Stock Exchange.
Performance
The key highlights of the results were:
- Total assets increased by 54% to Ksh. 15 billion;
- Return of 37% on opening shareholder funds against the NSE Index which declined by 5% in the comparable period;
- The Group profit before tax increased by 110% to Ksh. 2.2 billion;
The Company’s assets grew substantially in the same period from Ksh. 9.8 billion to Ksh. 15 billion. The growth was underpinned by strong investment income and increased investment activity. Centum is targeting to grow its assets under management to Ksh. 30 billion by 2014 and has made significant strides in achieving this ambition having grown from Ksh. 6 billion in 2009. Centum’s CEO, Mr. James Mworia expressed confidence in achieving this objective and indicated that the Company was ahead of its strategic targets.
The Net Asset Value (NAV) per Share increased to Ksh. 20.80, a growth of over 100% from the 2009 level when the current strategy period began.
Centum provides investors with access to a portfolio of inaccessible investments and aims to consistently deliver market beating returns. The 37% return on shareholder funds was consistent with Centum’s track record of delivering market beating returns. In 2010 Centum delivered a return of 56% and has consistently beaten the NSE Index over the last six years.
The Group EPS more than doubled to Ksh. 3.79 from Ksh. 1.80 in the previous period. The increased profitability of the Company was attributed to strong performance across its three business line; Private Equity, Real Estate & Infrastructure and Quoted Private Equity. The Private Equity Business investment portfolio is predominantly invested in the beverage and financial services sector and Centum’s share of profits grew by 57%. The Real Estate investment portfolio recorded a value appreciation of 41% of the amount invested to Ksh. 3.5 billion. The Real Estate portfolio is made up of prime assets in Kenya and Uganda. The Quoted Private Equity business line recorded returns which outperformed the NSE Index by at least 14%.
Outlook
Centum is working on developing world class destinations at its 100 acre in Runda and 300 acre site on the shores of Lake Victoria in Entebbe. The Company is targeting to break ground on phase 1 of both sites by the end of the current financial year. The Company’s Quoted Private Equity business line has plans to significantly diversify its portfolio outside Kenya. The Private Equity business line will be seeking to significantly increase the size of its portfolio within the current financial year by making new high quality investments, partnering with like minded investors and working with the Boards and Management of existing portfolio companies to enhance their value.
Corporate Actions
The bonus share issue of 1 for 10 is in line with Centum’s zero dividend policy.
Centum’s vision is to be Africa’s foremost investment channel and in line with that vision the Company’s Board will be presenting to its shareholders a resolution to cross list the Company’s shares on both the Dar es Salaam Stock Exchange and the Rwanda Stock Exchange.
Centum whose shares have been listed on the Nairobi Stock Exchange since 1967 successfully cross listed its shares on the Uganda Securities Exchange in February 2011 and. In the last two years, the investment firm has focused on the Pan-African market, regarded as the world’s next growth frontier. Mr. Mworia said Centum will push on with its quest to be the continent’s foremost investment channel.