Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Dr Chris Kirubi with Centum CEO James Mworia/CFM

Kenya

Centum hits turbulence, profit dips

Dr Chris Kirubi with Centum CEO James Mworia/CFM

NAIROBI, Kenya, Jun 19 – Listed investment company Centum has posted a 48 percent drop in its profit for the full year ending March 31, 2012.

A jump in the cost of credit to more than 20 percent, currency swings and a 13 percent fall of performance on the Nairobi Securities Exchange (NSE) last year negatively impacted the company’s returns.

Centum’s net profit dropped from Sh1.24 billion in 2011 to Sh446 million this year, while earnings per share dipped from Sh3.44 to Sh1.79 in the same period.

The Firm’s Chief Executive Officer (CEO) James Mworia said the company is looking to de-linking its investments from firms that are listed on the NSE to reduce its exposure to the fluctuations experienced last year.

“In 2009, we had almost 40 percent of our portfolio invested in the market, which meant our return was strongly related to what was happening on our stock market,” he said.

Mworia said diversifying into the region and real estate are some steps Centum is taking to boost its returns.

The company has an ambitious goal to grow its assets to Sh30 billion by 2014 from the current Sh15.7 billion, which grew marginally from last year’s Sh15 billion.

Net Asset Value (NAV) per share went up 9.1 percent to Sh20.57; however investment income posted a 43.7 percent decline for the year.

Though Centum’s profitability results took a hit, Mworia said the company’s understated net asset value holds significant potential to boost business.

“Our Private Equity portfolio is almost 60 percent of total business. When you look at UAP the value investors came in at was at least 20 percent higher than what we were carrying UAP in our books,” he said.

Advertisement. Scroll to continue reading.

Longhorn Publishing, which recently opened on the local bourse, registered 60 percent higher value than in Centum’s books.

“What we are trying is grow the net asset value per share and that is how we have been creating wealth,” Mworia explained.

Mworia was also buoyant about potential gains in the Two Rivers project, the 100 acre piece of land located in the diplomatic hub near the United Nations headquarters in Nairobi, and 300 acre waterfront property in Uganda.

Other ventures include, the Nairobi bottlers business, which constitutes 65 percent of Centum’s beverage business and just invested Sh1.3 billion in acquiring and commissioning a new line to increase water bottling capacity by 12 million crates per year.

Click to comment
Advertisement

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...

Headlines

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

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...

Kenya

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

Coronavirus

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

Coronavirus

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