Centum Investments has reported a consolidated profit after tax of Sh9.9 billion for the financial year ended March 31 this year, representing s 25 per cent growth from Sh7.9 billion in the previous period.
The listed investment firm's chief executive James Mworia attributed the performance to gains on disposals of investments, increase in value of property held, higher dividends from portfolio companies and higher income from subsidiaries.
“The increase in the Group’s profitability speaks to the profitability of the underlying assets which represent our investments,” Mr Mworia told investors at the release of the company’s results held Friday at its Two Rivers project in Nairobi.
The company recorded a 106 per cent growth in consolidated revenues for the full year ended March 2016 of Sh24.2 billion compared to Sh11.8 billion recorded the previous period.
Mr Mworia said the company’s planned shift from portfolio investor to being institutional developer of assets under its “Centum 3.0” strategy now in its 3rd year of implementation had shown significant signs of success.
Centum is currently active in seven sectors including real estate, financial services, fast moving consumer goods, power, agribusiness, healthcare and education.
“The company’s focus is to preserve and grow the value of shareholder wealth through different market cycles as measured by Net Asset Value per share. The Net Asset Value per share has risen by over 560 per cent over the past 8 years, from Sh8.86 to Sh59.08, this growth represents a 31 per cent Compounded Annual Growth rate,” said Mr Mworia.
The NSE-listed investment firm has returned to a dividend policy with its Board of Directors recommending the payment of a dividend of Sh1 per share to its shareholders.
This represents a Sh665 million payout for the period.
“We have chosen to recommend the dividend payout as delivering value to our shareholders is our primary focus and the company has sufficient liquidity to fund its deal pipeline. The company has over the years consistently delivered the return that now allows it to have a consistent dividend policy,” said Mr Mworia.