Centum records 7.9pc growth in half-year net profit to Sh2b

Centum chief executive officer James Mworia during an interview in Nairobi on February 3, 2016. Centum’s net profit in the half year to September grew by 7.9 per cent to Sh2 billion. PHOTO | ROBERT NGUGI | NATION MEDIA GROUP. 

In Summary

• Total income grew by Sh106 million to Sh8.5 billion, while on the cost side the firm recorded an increase from Sh5.07 billion to Sh5.13 billion.
• The firm's profit growth was driven by income from recently acquired subsidiary Longhorn Publishers and reduced forex losses.
• Centum’s finance costs fell by Sh315 million to Sh945.6 million over the period.
• Centum in May raised its stake in listed publisher Longhorn through a rights issue, and now holds 60.2 per cent of the firm from 31.25 per cent previously.

By CHARLES MWANIKI

Investment firm Centum’s net profit in the half year to September grew by 7.9 per cent to Sh2 billion, driven by income from recently acquired subsidiary Longhorn Publishers and reduced forex losses on dollar-denominated loans.

Centum’s finance costs fell by Sh315 million to Sh945.6 million over the period, while the share of associate profits rose by Sh153 million to Sh345.6 million.

Centum in May raised its stake in listed publisher Longhorn through a rights issue, and now holds 60.2 per cent of the firm from 31.25 per cent previously.

(READ: Centum makes history with Longhorn stake buy)

“The key profitability drivers during the period were: Consolidation of Longhorn Publishers financial results for the first time following acquisition of control in May 2016, improved profitability in the group’s portfolio companies and lower finance costs as a result of reduced forex losses on US dollar denominated borrowings,” said Centum in its financial statements.

Total income grew by Sh106 million to Sh8.5 billion, while on the cost side the firm recorded an increase from Sh5.07 billion to Sh5.13 billion.

Centum’s earnings this year are, however, absent of any one-off gains from disposal of assets, as had been the case in the corresponding period of 2015 when the firm booked a gain of Sh1.7 billion from the disposal of a portfolio of shares at the NSE and the sale of its stake in AON Insurance Brokers.

“The group has not recorded an exit of similar magnitude in the half year ending September 2016,” said Centum.

Centum’s total assets have grown by 10 per cent or Sh7.8 billion to Sh85.9 billion in the period.

Its net cash holdings, however, dropped by Sh1.7 billion to Sh4.9 billion due to an investment of Sh1.7 billion made in a new PET bottling line at its bottling subsidiary Almasi Beverages.

The firm also invested Sh3 billion in its real estate projects.

cmwaniki@ke.nationmedia.com