NAIROBI, Kenya, June 17- Centum Investment has recorded a 160 percent rise in its net profit for the year ending March 2015 to Sh7.9 billion from Sh3 billion realised in the previous year.
This is the first time in the company’s history that profitability crossed above the Sh7 billion mark.
Centum CEO James Mworia says the huge profitability was due to investment income attributable to gain in disposal of investments, fair value increase in investment property as well as improved dividend from portfolio companies.
There was also improved income in operating subsidiaries such as Genesis Kenya, Nabo Capital and K-Rep Bank.
“This year we had a couple of important exits. In UAP we sold our stake where we realised about Sh5.2 billion. After the exit we gave an opportunity to Old Mutual and it is coming in as a fantastic company. We also exited our investment in our private equity funds in West Africa. It didn’t make sence for us to hold passive stakes in PE funds,” Mworia said.
The results have translated into an earnings per share of Sh10.46.
The company’s investment income increased by 142 percent to Sh11.8 billion from the previous year’s Sh4.9 billion.
During the financial year, Centum increased its shareholding in Almasi Beverages Limited, the leading Coca-Cola bottler in Kenya to 50.95 percent stake.
Within the fast growing consumer goods space, Centum also established a new wholly- owned subsidiary, King Beverage Limited whose mandate is to market, sell and in future produce alcohol production.
At the moment King Beverage has an exclusive distribution license for international beer, Carlsberg.
In September 2014, a consortium consisting of Centum and Gulf Energy was awarded the tender to build 1,050 megawatts coal power plant in Manda Bay in Lamu County.
Mworia noted that the real estate portfolio was also growing and delivering value to the shareholders.
“Two Rivers once complete will provide an unmatched experience and the project is on track and a significant amount of the lettable area of 670,000 square feet retail gross leasable area, has been leased,” he noted.
The Centre will be the largest mall in Sub-Saharan Africa, excluding South Africa.
In line with dividend policy, the company did not recommend dividend.