Centum Records 25.3% Increase in Profit after Tax in FY16

The equities market recorded gains for the first time this week as the NSE All Share index inched up by 0.55% to close at 145.43 points from 144.63 points the previous day. The NSE-20 share index followed suit, advancing marginally by 0.01% to close at 3798.26 points while the NSE 25 Share Index went up by 0.15% closing at 4120.23 points. Market Capitalization expanded marginally by 0.56% to close at KES 2,056.20 billion from KES 2,044.78 billion. Equity turnover however bucked the trend, plummeting by 18.06% to close trading at KES 0.765Bn. Market breadth, the measure of market performance however favoured the decliners as 31 stocks depreciated in price against 13 advancers.

Centum Investment Company Limited (NSE: ICDC) announced its annual results for the period ended 31st March, 2016 recording a 25.25% jump in profits after tax to KES 9.9 Billion. This was driven by a 104% rise in revenue to KES 24.1 Billion underpinned by the firm’s current strategy of being an institutional developer of assets rather than a portfolio investor, a shift towards holding company model. For the first time since 2009, the investment company declared a dividend of KES 1 per share underscoring its sturdy liquidity position. It foresees sustained dividend payout in the future.

Total assets grew by 8% from KES 72 Billion to KES 78 Billion on increased value on its property portfolio, capital expenditure on its bottling operations and a rise in lending and liquidity on its newly acquired banking subsidiary. The company anticipates economic challenges in the coming year, leading to a reduction in in its listed equity exposure in favour of cash and fixed income.

This will caution the firm’s bottom-line against unforeseen market volatility hence protecting shareholders’ value.

Equity Market Highlights

Safaricom Ltd (NSE: SCOM) was the most actively traded stock today accounting for 41.32% of the total market value traded activity. Equity Group Ltd (NSE: EQTY) also registered high levels of activity, accounting for 20.12% of the total market turnover.

Centum Investment Holdings Ltd (NSE: ICDC) capped the gainers list, appreciating by 8.54% to close the day at KES 44.50. Liberty Kenya Holdings Ltd (NSE: CFCI) went up by 7.64% to close the day as the second best performer at KES 15.50.

Flame Tree Group Ltd (NSE: FTGH) emerged as the top loser of the day, plunging by 8.70% to close at KES 6.30. Eaagads Ltd (NSE: EGAD) similarly lost ground by 8.70% to close at KES 21.00.