Today Centum Investment Company held an investor’s briefing where the company outlined the financial results for the period ended 31st March 2012. The company also outlined the projects and targets they intend to achieve in the subsequent period.
Asset Growth
The company’s mission is to create real tangible wealth by providing the channel through which investors access and build extraordinary enterprises in Africa. In line with this statement the company managed to grow their total assets from KES 15 billion in the previous period to KE 15.7 billion in the period under consideration. The company’s geographical diversification (investments outside Kenya) has also steadily grown from 1% in 2009 to 14% as at the period ended 31st March 2012.
In the period under consideration with the reigning economic environment (high inflation, high cost of borrowing and an unstable shilling) the investment company focused on the following:
- Delivering market beating returns while protecting shareholder wealth. Shareholder wealth has grown by KES 7.8 in the last 36 months.
- Further diversification from market returns. The proportion of non-market investments has grown from 11% to 24% of total assets.
- Enhancing Liquidity, from KES 0.2 million to KES 1.5 billion.
- Reducing expensive financing. Debt reduced by 50%.
Drop in Profits
The group has reported a profit after tax of KES 1.190 billion. This is KES 1.102 billion lower than the KES 2.292 billion profit reported during the previous period. This translates to a drop in profits of 48%. The company also suffered a loss reporting a profit of KES 446 million, this is KES 791 million lower than the KES 1.237 billion reported in a similar period last year and translated to a 63.9% drop in profits.
The company is listed under the Investment category of the NSE. Over the last 3 months it had been consistently trading above KES 14 per share. However, in today’s trading the share has dipped below KES 14 and currently trades as at KES 12.80 per share (according to Live Nelly Data as at 12.48 pm). This drop of 13.22% from yesterday’s closing price of KES 14.75 can be attributed to the news of the low profits.
We will observe the share to note the level at which it will close today.