Centum Records a Historic Loss of Sh.1.37 Billion

The firm's audited results released Tuesday show interest in the capital market, real estate, education, and manufacturing reported a loss of Sh1.37 billion compared to a profit of Sh4.6 billion the previous year. 

During the financial year, Longhorn Publishers had muted sales on long Covid-19 schools closure while Two Rivers Mall reported low traffic due to Covid-19 containment restrictions. 

Two Rivers Development Group incurred high finance costs of Sh1.8 billion associated with the development where Centum Investment holds a 58 percent stake in the real estate segment.

Addressing investors yesterday, Centum CEO James Mworia said the company faced several challenges that affected its bottom line during the year under review.

He added that the group is planning to reorganize the balance sheets of some of its subsidiaries to cut operational costs.  

“The boards of Two Rivers Development Limited (TRDL) and Two Rivers Lifestyle Centre (TRLC) have initiated steps to restructure the balance sheets in order to reduce the interest-paying debt and significantly cut operation costs,'' Mworia said.

Centum posted an Sh875 million profit from its real estate business and Sh330 million profit from its financial services business.

However, it reported a loss of Sh529 million from its trading business and Sh1.9 billion loss from its Two Rivers Development.

The group’s total assets grew by seven percent to Sh109.4 billion from Sh101.9 billion the previous year, supported by increased investments in marketable securities.

Total liabilities increased to Sh61.5 billion from Sh52.6 billion in the same period last year.