Centum Group posts Ksh.1.4 billion loss

Investment firm Centum Group has posted a Ksh.1.4 billion loss for its financial year ending March 31.

The loss which is in stark contrast to Ksh.4.6 billion in profit booked last year comes on the back of a strained operating environment for the firm occasioned in part by the COVID-19 pandemic.

For instance, Centum marked a barren year of exits in its private equity portfolio in contrast to Ksh.12 billion in gains made from the disposal of its bottlers business in 2020.

At the same time, the investment firm booked lower dividends from its investment holdings following the entry of the COVID-19 pandemic as entities such as Longhorn Publishers and catering firm NAS Servair suffered the biggest brunt from the fall out.

As such, Centum Group trading business returned a loss of Ksh.529 million despite significant cuts to direct and other operational costs.

At the same time, Centum’s Two Rivers Development remained in loss making territory largely as a factor of interest payments on debt carried in the project.

Nevertheless, five out of nine entities representing Centum’s private equity portfolio remained in the profitable zone in the period while its real estate business churned out profits driven by sale of units and development rights.

At the same time, Centum Group cuts its finance costs by retiring a Ksh.6.6 billion bond.

Similarly, the Group received Ksh.4.5 billion from its real estate arm representing about 60 per cent of its total invested capital in Centum Real Estate.

On the same note, Centum Group has now cut its long-term debt to a balance of just Ksh.3 billion which it plans to round off in the new financial year.

However, Centum has trimmed its final shareholder pay for the period to Ksh.218 million or a respective 33 cents per share from Ksh.799 million or Ksh.1.20 per share last year.

This in a capital preservation bid as the firm remains uncertain of the business recovery trend over coming months.

“We are cautiously optimistic about the coming year. We have witnessed a strong recovery in performance across our portfolio companies and we hope that this recovery will not be interrupted by any unforeseen external economic shocks,” noted Centum Group Chief Executive Officer James Mworia.