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Full year pretax profit drops by 64 pc, says Kenya's Centum Investment

The company's performance for the year was also compounded by a prolonged election period in Kenya, slowing private sector credit growth and the impact of drought, it said in a statement.


Reuters 13 Jun 2018, 04:53 AM Kenya
  • Centum said in a statement its pretax profit dropped to 3.15 billion shillings ($31.16 million) from 8.74 billion shillings a year earlier. (Image Credit: Twitter)

Kenya's Centum Investment Company said on Wednesday its full-year pretax profit dropped 64 percent, hurt by lower property valuation gains and a delay in recognising proceeds from the sale of one of its businesses.

In May, Centum had said its earnings would also be affected by the fact that it had not recognised realised gains on the disposal of one of its businesses, GenAfrica Asset Managers, whose transactions were signed in the year to end-March but which had not been finalised by March 31. Those gains will reflect in the financial year to end-March 2019.

The company's performance for the year was also compounded by a prolonged election period in Kenya, slowing private sector credit growth and the impact of drought, it said in a statement.

"The economic headwinds weighed down investment spending in 2017, contributing to a sluggish transaction environment. Kenya's real estate market also recorded the lowest capital appreciation compared to the previous six years," Centum said.

Centum said in a statement its pretax profit dropped to 3.15 billion shillings ($31.16 million) from 8.74 billion shillings a year earlier.

It said the drop in profits was also attributed to a 2.3 billion shilling or 35 percent drop year-on-year of its fair value gain on its investment properties.

The firm, which invests in listed firms and private companies from drinks makers to property developers, said net asset value per share, a key measure of performance for investment firms, rose to 73.2 shillings from 67.3 shillings the previous year.

It said its performance was also hurt by a net loss reported by a commercial bank it has a stake in, while it got a boost from its beverage business whose revenues were up 6 percent and pretax profit up 18 percent. ($1 = 101.1000 Kenyan shillings)


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