Centum Investment Company Plc (NSE: ICDC), has posted a 21 percent drop in profit after tax to Ksh 1.63 Billion from Ksh 2.06 Billion for the half year ended 30th September 2017.
This was on account of a 35 percent decline in income from financial services mainly due to the negative impact of interest rate cap on Sidian bank – its subsidiary- and lower income from other business segments.
This translated to a 119 percent decline in the Group’s operating profit despite the gross profit increased by 9 percent.
The overall outlook remains positive with anticipation of growth in the real estate portfolio.
Additionally, the private equity segment will continue boosting the topline growth on the back of continued profitability spurred by increasing operating efficiency. We note that Centum’s NAV edged up 3.6 percent (KES 69.7) in the period under review, a discount to the current market price of KES 43.00.
Source: Genghis Capital