Cytonn Reports Profits Growth of 276.7% in the Year that Ended 2017

Cytonn Investments Management Plc has reported a growth of 276.7 percent in profits to 398 million shillings in 2017 from 105.7 million shillings in 2016 for the year that ended 31st December 2017.

The growth in profits was said to have been as a result of strong revenue growth from projects construction progress and the realization of gains from investments in the stock markets.

According to the Group’s Audited Financial Statements for 2017, balance sheet growth was robust, with total assets growing by 49.4 percent, to 17.7 billion shillings from 11.8 billion shillings in 2016.

The Group’s total assets under management grew by 32.2 percent to 13.8 billion shillings at the end of 2017 from 10.4 billion shillings in 2016. The bulk of the growth in earnings and assets were said to have been driven by their investments in both quoted equities and real estate.

Revenue from the sale of Cytonn’s real estate developments increased by 92.7 percent to 612.6 million shillings from 317.9 million shillings. Investment Property in real estate projects and investments in quoted stocks increased by 60.6 percent to 886.0 million shillings from 551.6 million shillings in 2016.

The Group’s Other Income increased by 681.0 percent to 362.4 million shillings from 46.4 million shillings recorded in the previous year driven by income realized from investments in quoted stocks at 238.9 million shillings, and dividends received at 103.2 million shillings.

Cytonn’s Chief Executive Officer, Edwin H. Dande said that 2017 was characterized by a tough economic environment for businesses in Kenya brought about by low credit growth to the private sector, which hit a low of 2.4 percent and the prolonged electioneering period.

“With our commitment to deliver attractive returns to all stakeholders, we saw this as an opportunity to invest in our growth while the rest of the market was distracted and businesses were on a slow,” said Edwin Dande.