Listed investment company, Centum, will continue with its non-cash dividend policy as it enters into a new five-year growth plan that will see its shareholders go for a decade without getting any payout.
The company, which Tuesday announced a 22 per cent increase in after-tax profit for the full-year ended March, intends to use retained earnings and debt to drive growth.
The company reported profit of Sh3.05 billion up from Sh2.5 billion a year earlier, attributed to growth in investment income.
“We will continue pursuing the zero dividend policy. We now have a greater scale to grow faster and take opportunities which will create a more value to our shareholders,” said the Centum chief executive James Mworia.
The company’s stock traded at Sh39.25 per share down from Sh40.25 per share in Monday’s trading at the Nairobi Securities Exchange. The share has gained 17.5 per cent in the past six months.