Cytonn Posts a 421.4% Profit Growth in their Q3’2017 Results

Cytonn Investments Management Plc (‘Cytonn Investments’) has posted a 537 million shillings’ profits growth (421.4 percent) on their financial results for the months that ended September 2017.

The growth, according to Cytonn, was driven by significant gains from investments in financial services stocks and real estate investments.

Revenues grew by 127 percent to 2 billion shillings for the 9 months from 886 million shillings for the period ending September 2016. Profitability was driven by investments in financial services stocks and real estate investments.

Balance Sheet growth was also robust, with total assets growing by 54.0 percent, to 18.2 billion shillings from 11.8 billion shillings as at FY’2016. The strong growth in the balance sheet was driven by a 45.0 percent growth in the company’s real estate holdings in Investment Property, from 10.1 billion shillings as at FY’2016 to 14.6 billion shillings.

According to the firm, the growth in total assets was also supported by strong growth in their real estate projects under the mandate, and strategic investments in financial services through their Quoted Investments. Projects under the mandate in the real estate portfolio increased by 10.8 percent from 74 billion shillings as at FY’2016 to 82 billion shillings.

“2017 is a great year for our investors, as can be seen from our financial results, and we shall look to close the year strongly. During a period where the market was distracted by the long electioneering period, Cytonn was focused on picking opportunities at attractive valuations to deliver the best returns to clients. Our private offers distribution continues to be a key focus area for the firm, and in line with the same we have opened two offices this year one in Nyeri and in Nairobi, which brings the total number of offices in Kenya to six” noted Edwin H. Dande, the Managing Partner and CEO at Cytonn Investments.

“Given the long-term growth prospects of Kenya and the Sub Saharan African Region, we shall continue to be investing in our strategic initiatives such as education and hospitality, while also growing in the Region and offering our clients exposure to a number of regional markets. More importantly, all of our growth and investments are based on rigorous research and have been made with adherence to a strong corporate governance structure with a key focus on processes and policies”, added Edwin.

Elizabeth N. Nkukuu, CFA, Senior Partner and Chief Investment Officer at Cytonn noted that this year when the economy was faced with uncertainties due to the Kenyan General Elections, their investors have so far realized excellent returns driven by our investments in prime real estate developments in locations with compelling demographics and their Quoted Investments in the financial services sector.

” We are confident in continuing to deliver superior returns to our investors. All of our investments continue to address the housing shortage, create employment opportunities, with over 1,500 jobs having been created to date, and play a part in the growth of our economy,” added Elizabeth.