Centum Investment Group experienced a combined net loss of Ksh7.3 billion in the audited financial results for the full year ending on 31st March 2023. This contrasts with a net loss of Ksh2.1 billion during a similar period in 2022.
The Group attributes this decline in performance to losses incurred by Two Rivers Development Operations, amounting to Ksh3.9 billion, alongside a significant increase in financial costs.
The consolidated performance includes results from various entities, such as Trading Businesses, Financial Services, Real Estate, Two Rivers Development, and Investment Operations.
Dr. James Mworia, the CEO and Managing Director of Centum Investment Group, highlighted that the purchase of undeveloped land from Two Rivers International Finance and Innovation Center (TRIFIC), a wholly-owned subsidiary of Centum, had a significant impact on the Group’s performance.
The Board of Directors has proposed a dividend payout of Ksh400 million for the financial year ending 31st March 2023, up from Ksh391 million in the previous year. This translates to a dividend per share of Ksh0.60, compared to Ksh0.59 in 2022. The proposal will be discussed at the upcoming annual shareholders meeting.
Dr. Mworia mentioned an improved cash performance, with profit before provisions increasing by 111% from Ksh551 million to Ksh1.1 billion.
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Looking ahead, the Group anticipates that its Centum 4.0 strategy, which focuses on Return and Dividend Payout, Capital Structure and Liquidity, Operating Costs, Portfolio Focus, and Organizational Effectiveness, will have a positive impact on shareholder value and returns.
Notably, the Group successfully reduced its total debt from Ksh16.1 billion in March 2019 to Ksh2.2 billion in March 2023.
The Group achieved a 10% reduction in operating costs in 2023, reflecting improved efficiency, and attained a 38% cost-to-income ratio for the financial year ending March 2023, down from 39% in the previous year.
Additionally, the Group rewarded shareholders with a dividend cheque of Ksh2.9 billion, meeting 67% of the Centum 4.0 strategy’s target.
The Group’s outlook indicates that 2024 marks the final year of the Centum 4.0 strategy period, and there is an optimistic view that the key initiatives set forth will further enhance shareholder value and returns.
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Centum is an investment company which offers investors the opportunity to access a diverse portfolio of high-quality and otherwise hard-to-reach investments.
