NAIROBI, Kenya, Jun 12 – Centum Investment Company has reported an increase in pre-tax profit of 48% to Sh4.1 billion where the trading businesses have performed exceptionally in an environment the organization described as challenging.
The investment company said its profit after tax profit in the year ending March rose to Sh4.44 billion shillings from Sh3.16 billion that it reported in the previous year.
During the twelve-month period the organization’s total assets boosted by an increase of 8% to Sh71.6 billion.
The asset growth was majorly through internally generated funds and debt without any equity raise from the shareholders.
It equally showed exemplary performance on its net asset value per share rising from 73.2 shillings to Sh79.1 shilling in the last financial year.
However, the investment income dropped from Sh3.5 billion to Sh3.2 billion compared to the results it posted last year.
This has been attached to the sale of GenAfrica Asset Managers that on the other hand has continuously boosted the investment company performance.
The company has also announced the sell shareholdings of their beverage companies in which they will close the transaction during in the next financial year.
Group Chief Executive Officer Centum Investment James Mworia said the sale of the company’s two assets has contributed to the massive growth experienced in the company.
“I am very pleased to announce that we have entered into an agreement to sell our shareholding in Almasi Beverages and Nairobi Bottlers Limited at a transaction price of Sh19.5 billion. The combined historical cost of the two assets is Sh3.4 billion and the achieved exit valuation speaks to the success of our investment cycle and portfolio management strategy that included consolidation of three bottlers into Almasi Beverages and acquisition of a majority stake in the business over the Centum 3.0 period,” he said.
“The proceeds from these transactions will be applied towards repaying our current U.S. dollar-denominated bank term loans of 7.5 billion shillings, which will result in finance cost savings of Sh700 million,” he added.
To further strengthen its position in the investment market, it plans to invest an addition 10-15 billion through its private equity in the next five years, concentrating on sectors it understands more and are still open to other sectors.
The company also holds shares in vehicle assembly, catering company, publisher and commercial bank, and its total assets rose to Sh101.76 billion up from Sh96.29 billion.