OPERATING PROFIT

Centum pays Sh218m dividend to cushion shareholders

Dividend payment pegged on a Sh245m operating profit recorded in the year.

In Summary

• At a consolidated level, Mworia said the consolidated profit before tax reduced from Sh5.44 billion to a loss of Sh2.33 billion for the year ended 31 March 2021. 

• Last month, Centum Real Estate Limited reported a consolidated profit of Sh650 million for the year ended March 31 2021.

Centum Group CEO James Mworia speaking during the Cascadia Open Day forum at City Lodge, Two Rivers.
Centum Group CEO James Mworia speaking during the Cascadia Open Day forum at City Lodge, Two Rivers.
Image: CENTUM RE

Centum Investment Company Plc shareholders are set to get a Sh218 million dividend payout for the financial year ended March 31 2021.

The dividend payment is pegged on a Sh245 million operating profit that the company recorded in the year.

“The dividend is intended to cushion our shareholders from the effects of the difficult economic conditions while allowing the company to retain liquidity,” Chief Executive James Mworia said in a statement on Tuesday.

Mworia said the company is in a strong liquidity position of Sh7.5 billion held at the end of March 2021.

“The Company has a strong balance sheet and a portfolio of quality assets with low gearing.  The Company is therefore well positioned to take advantage of emerging opportunities, particularly in the private equity and High Yield Portfolio,” Mworia said.

At a consolidated level, Mworia said the consolidated profit before tax reduced from Sh5.44 billion to a loss of Sh2.33 billion for the year ended 31 March 2021.

"This is mainly on account of consolidating the performance of Two Rivers Development Limited, which booked a loss of Sh1.85 billion," he said.

Mworia said a balance sheet restructuring is underway to reduce the interest paying debt held by TRDL and Two Rivers Lifestyle Centre and is expected to be completed by the end of the current financial year.

Last month, Centum Real Estate Limited reported a consolidated profit of Sh650 million for the year ended March 31 2021.

This profit has been driven by profit from residential units, sales development rights and gains on investment properties.

Centum Real Estate recorded residential unit sale deposits of Sh1.8 billion in the year, a 20 per cent increase from Sh1.5 billion recorded in 2020.

“The effect of Covid-19 containment measures was an initial slowdown particularly in Uganda, but this changed in subsequent quarters and our average monthly cash collections have increased by 73 per cent,” Real Estate Managing Director, Samuel Kariuki said.