Centum Group narrows loss on rebound after investment operations

 

Centum Group CEO James Mworia and CFO Risper Alaro during the Centum Investment Half Year Results announcement. [File, Standard]

Centum Investment Company has announced a ShS431 million net profit for the six months ending September 2024, reflecting a significant rebound driven by robust investment income and effective cost management strategies.

The company reported Sh2.2 billion in net operating cash flows during the period, primarily generated from annuity income, exit proceeds, and shareholder loan repayments. These funds have been strategically allocated towards debt and interest repayments, reinvestment in its portfolio, and an ongoing share buyback programme.

Dr James Mworia, CEO of Centum Group, highlighted the company's focus on debt reduction and its progress in implementing key value-creation initiatives. “We expect these initiatives to translate into incremental revenue and growth within our portfolio companies in the latter half of this financial year,” he stated.

Cost containment measures have proven effective, with operating and administration expenses reduced by 13 per cent year-on-year. Furthermore, finance costs also decreased by 13 per cent following continued debt repayment efforts.

The consolidated performance of the group showed an improvement in after-tax loss, which narrowed to Sh347 million from Sh426 million in the first half of 2023. This positive trend was largely attributed to the trading business, Two Rivers Development Limited, and the investment operations segments.

Centum's total assets rose by Sh4 billion to Sh80.7 billion, while retained earnings remained steady at Sh38.3 billion, underscoring the company's strong position to capitalize on future investment opportunities.

“We are also focused on monetizing some of the value across our portfolio. The liquidity generated from these transactions is expected to be redeployed into marketable securities and other high-yielding opportunities to enhance our annuity income,” Dr Mworia added in a statement.