Centum after tax profit soars to Sh892 million

James Mworia

Investment firm, Centum Group has announced improved performance across its key areas of operation, painting a promising outlook in the coming years.

The company saw its profit after tax jump to Sh892 million in the first six months to September, compared to Sh806 million in the previous period.

Group Chief Executive Officer James Mworia attributed the improved performance to growth in the private equity and real estate business lines and above market returns in its quoted private equity business line.

He explained that the growth was also largely driven by an ambitious five-year strategic plan initiated in 2009 and which comes to an end early next year.

“The strategy was aimed at creating really wealth for our investors and this has enhanced growth in our major focus areas,” he said during an investor briefing in Nairobi yesterday.

private equity

Mworia disclosed that the recent investment in Platinum, a micro-credit organisation, continues to yield significant returns to the private equity portfolio.

“We aim to achieve strategic goals set in accordance with the consistent performance to meet market diversification in terms of geographical as well as class growth,” he said.

Mworia said that the investments have generated considerable interest from some of the leading international brands and plan to attract a five-star hotel, international school and a reputable healthy facility.

“We have received all approvals and considerable support from all the authority concerned and the first phase of development is expected to kick off early 2014,” he stated.

According the trading results, the firm’s income asset under management grew from Sh19.3 billion to Sh21.68 billion in the year under review.

Centum’s own portfolio increased from Sh19.3 billion to Sh21.68 billion during the period under review. Investment income also grew by 60 per cent to stand at Sh1.198 billion down from Sh749 million. Mworia noted that the company aims to achieve strategic goals set to meet market diversification in terms of geographical as well as class growth.

However, he observed that the impact of the projects the firm is working on was not factored in the current results and expects an improved performance next time.

He announced plans to diversify to sectors such as agriculture in the first quarter of 2014 as part of the transformation in the company and develop a model it can take across the region.

key market

Mworia said that agriculture has a huge growth potential, buoyed by considerable opportunities, access to arable land, favourable weather conditions and a promising demographic that would form a key market for their goods.

Over the last five years, the share price of the group has increased from Sh8 to an average of Sh31 at the bourse.

Mworia said the firm’s board is expected to sit by the end of this year to draw another five-year strategic plan to drive its growth through three distinct business lines namely; Private Equity, Quoted Private Equity and Real Estate and Infrastructure.