Listen to This Article Enhance your reading experience by listening to this article.

Centum Investment will pay shareholders Sh391 million in dividends for the year ended 31 March 2022, compared to the Sh219 million the previous year.

This represents a 77 per cent increase in dividend payout compared to the Sh219 million paid the previous year, even as the firm posted a Sh1.33 billion net loss this year. Centum had posted a net loss of Sh1.36 billion the previous year.

“This payout represents a dividend per share of Sh0.59 up from Sh0.33 in the last financial year. The proposed dividend will be considered for approval by shareholders,” said Group chief executive James Mworia in a statement.

Consolidated ratios

Mworia said dividend payouts follow Centum’s policy of distributing 30 per cent of returns from its cash holdings to shareholders.

During the period in review, firm’s total investment income comprised Sh1.3 billion of annuity income, being dividend, and interest income received from its portfolio companies, and from its investment in marketable securities. Centum also posted a Sh592 million operating profit in its company financials, up from Sh245 million the previous period.

As a consolidated unit, financial statements aggregated performance of Centum’s five distinct operations includes trading businesses, financial services, real estate, Two Rivers investment operations, and investment operations.

The consolidated total comprehensive income for the year stood at Sh142 million, which is a 110 per cent growth, from the loss of Sh1.4 billion recorded in 2021.

The firm’s financial services made the biggest profit of Sh691.6 million, more than double the Sh329.8 million recorded a year earlier due to increased interest rates.

Centum’s loss from Two Rivers Development Limited widened to Sh1.98 billion from Sh1.85 billion due to reduced sales and investment income.

Excluding losses from Two Rivers investment operations, consolidated total comprehensive income for the Centum Group would have hit Sh2.1 billion, up from Sh405 million in the prior year. 

The companies financial records show Centum did not take up any additional debt, and maintained a positive cash position, net of debt.