Centum HY Results: Ksh662M Loss as Two Rivers Bleeds Cash

Centum Investment Company Plc. on Monday, November 29 shared its latest financial statements. The firm posted a Ksh662.1 million loss after tax for the six-month period ended September 2021.

It was an improvement from the Ksh1.98 billion loss the firm recorded in the corresponding period last year. Similar to last year, the loss in the half-year ended September 2021 was driven by losses from Centum’s Two Rivers Development and real estate investments.

The firm posted a Ksh342.3 million loss from Two Rivers Development Group in the half year ended September 2021, an improvement from the 1.01 billion loss the development posted in a similar period last year.

Centum notably holds a 58% Stake in Two Rivers Development Ltd (TRDL). Two Rivers is a mixed-use development known for its lifestyle offerings including the Two Rivers mall, apartments and recreational spaces.

Centum recorded a Ksh141.8 million loss from its other real estate investments in the six-month period to September 2021, down from the 279.7 million loss booked from the investments in a similar period last year. Real estate sales and other income was outweighed by funding costs and other expenses.

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As of September 30, 2021, Centum valued its total assets at Ksh47.3 billion. Its market capitalization stood at Ksh11.9 billion. Real estate and Private Equity (PE) form 81% of its portfolio with marketable securities representing 19%.

The firm registered 38% growth in investment income in the half-year period, driven by resumption of dividend payment by its portfolio companies and an increased return of 15% from marketable securities up from 12%.

Finance costs in the same period fell by 24% following debt repayment the previous year.

Operating profit rose by a whooping 348% to hit Ksh425 million from Ksh95 million in the corresponding period last year. Operating expenses also rose 10% to Ksh328 million. Centum noted that steps were being taken to reduce the costs in the next financial year.

The statements were released against the backdrop of jitters from some Centum investors and former employees who have accused the firm’s management led by CEO James Mworia of overvaluation of real estate assets and poor debt management among other complaints.

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