Cytonn net profit rises seven-fold to Sh526 million

Cytonn CEO Edwin Dande releases results on December 5, 2017. PHOTO | DIANA NGILA | NMG
Cytonn CEO Edwin Dande releases results on December 5, 2017. PHOTO | DIANA NGILA | NMG 

Investment firm Cytonn has announced a seven-fold growth in third-quarter net profit to Sh526 million helped by a strong growth in transactions income.

In the same period last year, the company registered Sh87 million in net profit.

The firm’s revenue more than doubled to hit Sh932.9 million for the nine-month period ended September 30 relative to Sh398.7 million posted in a similar period last year.

Cytonn said the profit was driven by its investments in the real estate sector, which currently stands at Sh14.6 billion, and in quoted private equity, presently valued at Sh1.3 billion.

Cytonn Investments was founded in September 2014 by four former senior staffers at British-American Asset Management, comprising CEO Edwin Dande, chief investment officer Elizabeth Nkukuu, head of private equity and real estate Shiv Arora and head of legal Patricia Wanjama.

The firm recently announced plans to list on the Growth and Enterprise Market Segment raising hopes of an end to the depressing trend that has seen only one firm join the Nairobi stock market in the last 15 months.

The firm is eyeing regional expansion, which it says will coincide with a county-focused strategy within Kenya.

“We’ve been actively seeking opportunities in sub-Saharan Africa, through QPE (Quoted Private Equity) and RE (Real Estate) investments. We are finalising on efforts to venture into regional markets, such as Kampala and Accra,” it said in a statement.