Centum after-tax profit drops to Sh8.3bn

Investment firm Centum’s after-tax profit for the year ended March 2017 dropped 16.5 per cent to Sh8.31 billion, blamed on lower earnings from asset disposal.

Turnover fell 13 per cent to Sh18 billion from Sh20.7 billion in March 2016 attributed to depressed performance of Sidian Bank, its banking subsidiary, in the wake of interest rate caps.

Centum in the period under review sold its entire 26.43 per cent stake in Kenya Wine Agencies Ltd to South African brewer Distell, and sold an eight per cent stake in Platinum Credit, a non-deposit taking microfinance, to remain with a 27.6 per cent shareholding.

“We didn’t have as many gains on disposal compared to the previous year,” said James Mworia, group CEO at Centum at an investor briefing Tuesday.

More exits

“We have more exits lined up this year, but I can’t comment on them much now,” he said.

Centum’s total assets grew by a fifth to Sh61.5 billion from Sh51.5 billion as at March 2016.

Total borrowings ballooned 40 per cent to Sh14.65 billion at the end of March 2017, compared with Sh10.47 billion in a similar period a year earlier.

Centum announced a dividend pay of Sh1.20 per share from Sh1.00 per share paid out to shareholders last year.

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