Centum Investment Company has reported a net profit of Sh431 million for the six months ending September 2024, signaling a strong recovery fueled by robust investment income and disciplined cost management.
During the period, the company generated Sh2.2 billion in net operating cash flows, primarily sourced from annuity income, shareholder loan repayments, and exit proceeds. These funds have been strategically directed toward debt servicing, portfolio reinvestment, and an ongoing share buyback program aimed at enhancing shareholder value.
Dr. James Mworia, CEO of Centum Group, emphasized the company’s focus on debt reduction and implementing value-creation initiatives. “These initiatives are expected to drive incremental revenue and growth within our portfolio companies in the second half of the financial year,” he noted.
Key Performance Highlights
- Cost Management: Operating and administrative expenses were reduced by 13% year-on-year, showcasing effective cost containment strategies. Similarly, finance costs dropped by 13% due to continued debt repayment.
- Improved Consolidated Performance: The group’s after-tax loss narrowed to Sh347 million, compared to Sh426 million during the first half of 2023. This improvement was primarily driven by stronger performance in the trading business, Two Rivers Development Limited, and the investment operations segment.
- Asset Growth: Centum’s total assets increased by Sh4 billion, reaching Sh80.7 billion, while retained earnings remained stable at Sh38.3 billion.
Dr. Mworia highlighted the company’s focus on unlocking value from its portfolio. “We are actively monetizing assets across our portfolio. The liquidity generated will be redeployed into marketable securities and other high-yielding opportunities to boost annuity income,” he explained.
Outlook
Centum’s strategic approach to debt reduction, portfolio optimization, and reinvestment underscores its commitment to sustainable growth. With a strengthened balance sheet and improving operational metrics, the company is well-positioned to capitalize on emerging investment opportunities in the latter half of the financial year.
