Centum Investment Company has posted an impressive net profit of Sh431 million for the six months ending September 2024, marking a significant turnaround fueled by strong investment income and disciplined cost management strategies.
The company also reported Sh2.2 billion in net operating cash flows during the period, generated from annuity income, exit proceeds, and shareholder loan repayments. These inflows have been strategically deployed towards debt reduction, portfolio reinvestment, and supporting the company’s ongoing share buyback program.
Dr. James Mworia, CEO of Centum Group, emphasized the firm’s commitment to debt reduction and its focus on value-creation initiatives. “We anticipate these initiatives will drive incremental revenue and portfolio growth in the latter half of the financial year,” said Dr. Mworia.
Cost Management and Debt Reduction Drive Performance
Centum’s rigorous cost containment measures yielded tangible results, with operating and administration expenses dropping by 13% compared to the previous year. Finance costs also declined by the same margin, reflecting the company’s continued progress in debt repayment.
The group’s consolidated performance showed a notable improvement in its after-tax loss, narrowing to Sh347 million from Sh426 million in the first half of 2023. This positive trajectory was largely driven by gains in the trading business, spearheaded by Two Rivers Development Limited, and the investment operations segments.
Strong Financial Position
Centum’s total assets increased by Sh4 billion to Sh80.7 billion, reflecting its capacity to leverage future investment opportunities. Retained earnings held steady at Sh38.3 billion, underscoring the company’s financial resilience.
Dr. Mworia reiterated Centum’s strategy of monetizing assets within its portfolio to unlock liquidity. “The proceeds from these transactions will be redeployed into marketable securities and other high-yielding opportunities to bolster annuity income,” he noted.
This half-year performance highlights Centum’s robust recovery and positions the company for sustained growth as it continues to focus on strategic investments, operational efficiency, and shareholder value enhancement.
