Connect with us

Hi, what are you looking for?


Centum issues profit warning

NAIROBI, Kenya Apr 2 – Centum Investments has issued a profit warning for its results for the year ended March 31, 2009 stating that it expects the profits to register a 70 to 80 percent decline from the previous year.

The company explained that the warning had been issued as a transparency and good governance measure aimed at proactively informing shareholders of the company\’s financial results outlook.

The statement explained that in preparing the unaudited financial results, the company had followed the International Financial Reporting Standards which require that a company recognises any material changes in the value of its investments. The warning is in line with best practice among listed companies.

With Rift Valley Railways Investment (RVRI) undergoing a recapitalisation program, the company had chosen to mark down the value of its equity investment in the transport company in line with the requirements of International Financial Reporting Standards.

At the same time due to the depressed nature of the capital markets the company reduced its selling activities in the stock market resulting in a significant decline in gains realised from disposal of investments. Together, the two areas are expected to reduce the total profits after tax.

"Over the last twelve months, and in line with developments in other markets, the NSE 20 Share Index has declined by 42 percent. Despite the bearish environment, the prevailing market prices of our investments remained higher than their average cost and we retained the option to take profits. We however did not exercise that option because in our view this is a buyers\’ market and we therefore limited our selling activities," the statement said.

The current market presents excellent opportunities for long term investments and Centum said that "we will employ our relatively un-leveraged balance sheet and strong cash flow position to make investments in private equity, listed equity and real estate."

The company however says that Centum remains a very stable company and retains a healthy portfolio of investments and a strong and liquid balance sheet.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...