Friday, March 29, 2024

Centum issues profit warning

Centum Investments has issued a profit warning to its shareholders for the financial year ended March 31.

This follows the devaluation of its assets, reduced access to credit, unconcluded transactions and political uncertainty that characterized the 2017 financial year.

Consequently, Centum now expects to post net earnings at least 25 per cent lower than what it reported last year, which ended March 31, 2017.

In 2017 Centum recorded a net profit drop of 16 per cent to Sh. 8.3 billion from Sh. 9.9 billion in 2016.

“This is consistent with the performance of the Kenyan real estate market where real estate generally and commercial property in particular appreciated in value at a lower rate in 2017 on account of the political environment and the reduced access to credit by the private sector,” Centum CEO James Mworia said in a notice to investors.

Mr Mworia however said there is increased market activity this year. The decrease in revaluation gains has no impact on cash flow generated from operations, he added.

Performance is also expected to be depressed by the firm’s failure to realise gains on disposal of investments which had not been concluded by end of March 2018.

The profit drop is also not expected to affect the anticipated dividend declaration for the financial year.

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