The company has indicated the possibility of a more than 25 per cent year-on-year decline in its net profit, owing to lower asset valuation which mirrored poor performance in the Kenyan real estate market in 2017/FILE
NAIROBI, Kenya, May 14 – Centum Investment’s anticipated dividend declaration is on course and will not be affected by the recent profit warning regarding its full-year results for the ended March 2018.
The company has indicated the possibility of a more than 25 per cent year-on-year decline in its net profit, owing to lower asset valuation which mirrored poor performance in the Kenyan real estate market in 2017.
In 2017, Centum recorded a net profit drop of 16 per cent to Sh8.3 billion from Sh9.9 billion in 2016.
The company’s Group Chief Executive James Mworia said the warning is despite the company’s investment properties which recorded a gain in value during the period, but it was lower than that recorded in the year before.
“Ours was consistent with the performance of the Kenyan real estate market where real estate generally and commercial property, in particular, appreciated in value at a lower rate in 2017 on account of the political environment and the reduced access to credit by the private sector,” Mworia says in a statement issued by the company.
He added that the growth outlook for a majority of the underlying companies in Centum’s portfolio is positive.
“We have developed a robust deal pipeline for the new financial year. On the back of this, the Board and Management are optimistic that the group will continue to perform well in the financial year ending March 31, 2019.
