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HomeEconomyCorporateCentum half year loss halved 67% to Ksh.662.1 million

Centum half year loss halved 67% to Ksh.662.1 million

Centum half year loss halved 67% to Ksh.662.1 million

Centum Investment slashed its half-year loss by 67 percent for the year ended September 30, 2021, to Ksh.662.1 million compared to Ksh.1.98 billion it recorded same period last year.

The performance has been attributed to the group’s increased revenues across its business lines

“We have seen improved performance in the first half from various business segments as they recover and the economy rebounds from the impact of the Covid-19 pandemic,” said Centum chief executive James Mworia.

“We are optimistic about the second half of the year as we continue to execute on the recovery plans across the various businesses.”

Centum said the loss after tax was mainly driven by an impairment provision of Ksh.721 million on some of the assets following a prudent assessment.

In the period under review, Centum’s trading businesses returned a Ksh.255 million profit compared to Ksh.317 million loss recorded in the first half of 2020.

The improved performance in the trading business was helped by Longhorn Publishers, which posted a recovery following the reopening of schools.

Longhorn reported Ksh.7.5 million net profit from a loss of Ksh.226 million recorded in 2020.

The growth in profits was attributed to a recovery in book sales. This coincided with the resumption of learning after the exercise was halted due to the coronavirus pandemic.

“There was the extended suspension of learning in schools and constrained consumer wallets. Kenya and Uganda begun the year with schools closure and movement restrictions as part of the pandemic containment measures,” said Longhorn in a statement.

Finance services business profit surged five folds to Ksh.310 million compared to Ksh.38 million in last year’s first half as subsidiaries such as Sidian Bank, Nabo Capital and Zohari Leasing posted recoveries.

Centum Real Estate posted a Ksh.1.1 billion revenue from the sale of houses in six months to September 30, 2021.

The company’s revenue growth is attributable to strong sales that helped to record over Ksh.144 million gross profit from residential units in the first half of this year.

“Our current projected pipeline has a profitability level of Ksh.4 billion, out of which we have recorded Ksh.260 million in our income statement. The balance of Ksh.3.7 billion will be recognised progressively moving forward as we complete the projects and handover the houses.”

Two Rivers Development Ltd also cut its loss from Sh1 billion to Sh342 million, even though its debts pose a servicing strain. 

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Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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