Centum proposes Sh210 million dividend payout after recording Sh2.5bn net profit

Business
By Brian Ngugi | Jul 30, 2024

Centum Group CEO James Mworia and Centum Group CFO Risper Alaro during the Centum Investment Half Year Results announcement. [Wilberforce Okwiri, Standard]

Centum Investment Company Plc has announced Sh2.5 billion in after-tax profit for the year ended March 2024.

This was driven by improved performance and profitability of the company's subsidiary companies. It posted a loss of Sh9 billion the previous reporting period.

The company's investment portfolio increased by Sh6.1 billion to Sh66.5 billion, in line with Centum's business model of identifying compelling investment opportunities, adding value to scale them up, and monetizing the value created during the holding period at an appropriate time and price, said the listed firm yesterday.

Retained earnings also increased by Sh2.6 billion to Sh39 billion, strengthening Centum's financial position to take advantage of future investment opportunities, added the firm.

Centum Real Estate (Centum Re) was a strong performer, generating Sh3.7 billion in sales, a Sh3.6 billion increase in the fair value of investment property, and a Sh2.5 billion net profit.

Per Centum's policy of paying out dividends equivalent to 30 per cent of total annuity income in any financial year, the company has proposed to pay out Sh210 million (Sh0.32 per share) in dividends, out of the Sh692 million generated from its portfolio investments.

The company's Group CEO, James Mworia, stated that the performance signals a strong start to the Centum 5.0 growth strategy, which will focus on value optimization in the next five years.

He added that the company is "working towards scaling up the various businesses and monetizing them to realize a minimum of their carrying values, with the proceeds being applied to enhance the pool of marketable securities to significantly boost annuity income."

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