Cytonn Investments Posts HY Strong Revenue Growth of Kshs 638.8 mn
By Soko Directory Team / August 31, 2017
Cytonn Investments reported first-half 2017 unaudited results delivering strong growth with revenue growing by 140.4 percent to Kshs 638.8 mn from Kshs 265.8 mn for first-half 2016.
The group earnings more than quadrupled, growing by 415.9 percent, to Kshs. 299.2 million from Kshs. 58.0 million.
The strong growth in revenues and earnings was attributed to a 36.7 percent growth in their real estate deal pipeline, from Kshs 60.0 bn as at H1’2016 to Kshs 82.0 bn as at H1’2017, coupled with strong sales of real estate developments.
Balance sheet growth was also robust, with total assets growing by 24.5 percent, from Kshs 11.8 bn as at FY’2016 to Kshs 14.7 bn as at H1’2017.
The growth in total assets was driven by an increase of 216.3 percent in Quoted Private Equity and Active Strategy Investments, from Kshs 0.3 bn as at FY’2016 to Kshs 1.0 bn as at H1’2017, and an increase of 15.9 percent in investment property, from Kshs 10.1 bn as FY’2016 to Kshs 11.7 bn as at H1’2017.
Edwin H. Dande, Cytonn’s Chief Executive Officer said, “While the market was distracted in the first half of 2017, and with low valuations in the market, we have remained focused as a firm and built our investment portfolio, in both real estate and quoted private equity.”
“In financial services, we have taken advantage of the low market valuations to build strategic stakes in listed entities, the largest being KCB Group where we bought aggressively in February 2016 when the stock dipped to a low of Kshs 23.0 per share; it has now recovered to almost doubling to Kshs 45.0 per share, allowing us to book very attractive gains and have built our position to the 5th largest local institutional investor” added Edwin.
“In a year when the macroeconomic environment was challenging, and the economy faced uncertainties due to the General Elections, our investors have so far realized excellent returns of 21.2 percent p.a. in the Real Estate Development Portfolio driven by our investments in prime real estate developments in locations with compelling demographics, 58.2 percent p.a. in the Quoted Private Equity Portfolio driven mainly by increasing exposure to the undervalued financial services sector, and 18.0 percent p.a. in the Privately Placed Commercial Paper Portfolio,,” said Elizabeth N. Nkukuu, CFA, Cytonn’s Chief Investment Officer and Head of Real Estate.
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