Business

Centum cuts half-year loss by 67 per cent

Centum cuts half-year loss by 67 per cent

Centum Investment Group cut its half-year losses by 67 per cent on the back of increased revenues across its business lines.

The net loss for the half-year ended September 2021 was Sh662.1 million compared to Sh1.98 billion loss that the diversified investment firm posted in a similar period in 2020.

“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 Sh721 million on “some of the assets following a prudent assessment.”

During the review period, Centum’s trading businesses returned a Sh255 million profit compared to Sh317 million loss recorded in the first half of 2020.

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

Finance services business returned a five-fold growth in profits to Sh310 million compared to Sh38 million in last year’s first half as subsidiaries such as Sidian Bank, Nabo Capital and Zohari Leasing posted recoveries.

Centum Real Estate halved its loss to Sh142 million on the back of selling residential units valued at Sh144 million and booking Sh63 million gain on disposal of development rights.

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