Centum today morning released their results for the full year ended 31st March 2011.
Profit Before Tax increased by 112% to Kshs. 2.3 Billion
Total Assets increased to Kshs. 15 billion from Kshs. 9.84 billion, which represents a 52% rise. The breakdown of the assets is as follows:
Private Equity – Kshs. 7.6 Billion
Real Estate – Kshs. 3.5 Billion
Quoted Private Equity – Kshs. 3.9 Billion
It is important to note that Centum has 74% of its assets in Private Equity and Real Estate, areas which are largely inaccessible to a host of investors, further underlying Centum’s position as a great avenue for investors to gain access to opportunities which are out of their reach. Private Equity’s share of profits increased by 57%. The company is looking into new Private Equity business with an average deal size of US$20 Million
James Mworia, C.E.O of Centum Investments, said that the Quoted Portfolio should mainly be viewed from a liquidity perspective and for supporting investments. That is the main reason Centum exited from Carbacid as they had identified investments from which they could reap more. The Quoted Investments can also be used as collateral when seeking loans. The Carbacid exit was after the year end and thus has not been factored into the results
The company has a target of having 30 Billion in assets by 2014. Mr. Mworia was confident of exceeding that goal as they were ahead of schedule. The 30 Billion does not include 3rd Party Funds which they are seeking to manage.
Centum’s growth is organic as they have achieved their growth by moving from low yielding assets to higher yielding assets
They mentioned that they have an indirect presence in West Africa and Southern Africa and that before the year is out, they will make a significant investment
The key highlight of the Investor briefing was the management’s presentation on Real Estate.
Centum is working on developing world class destinations at its 100 acre in Runda and 300 acre site on the shores of Lake Victoria in Entebbe. The Company is targeting to break ground on phase 1 of both sites by the end of the current financial year. They are looking to develop Runda into a diplomatic hub
The C.E.O intimated that the company was not looking to sell land but develop it. The company has already realised an increase of US$5 Million in the value of land at Palm Marina in Uganda. The land was acquired for US$15 Million and is now worth US$20 Million at conservative valuations.
They also have a tract of land along Uhuru Highway which it plans to put up buildings.
By engaging world renowned designers such as GAPP (Designers of V&A Waterfront) and Switch Design (World Cup 2010), the projects will boast brand identity.
Centum is the sole investor in the project. This, Mr. Mworia said, will enable quick decision making.
Mr. Mworia’s assertion that people should rush to their brokers after the presentation to place bids for Centum’s Shares was met with fits of laughter across the room.
The Private Equity business line will be seeking to significantly increase the size of its portfolio within the current financial year by making new high quality investments, partnering with like-minded investors and working with the Boards and Management of existing portfolio companies to enhance their value.
Management reiterated their vision to be Africa's foremost investment channel and in line with that vision, the Company's Board will be presenting to its shareholders a resolution to cross list the Company's shares on both the Dar-es-Salaam Stock exchange and the Rwanda Stock Exchage
Net Asset Value per share for the year was 20.8/=, an increase of over 100%.
Group Earnings Per Share more than doubled to 3.79, giving it a Price/Earnings Ratio of 6.27 at current price of 23.75
Management recommended a bonus issue of 1 share for every 10 shares held, similar to last year’s.
Mr. Mworia said though the results were good, he will not be satisfied until Centum is a force to reckon with on the continent. He was confident that the company’s diversification would enable it to continue delivering market beating returns.
GEM!
ITEM | MARCH 2011 | PERCENTAGE CHANGE FROM MARCH 2010 |
TOTAL ASSETS | 15.003 BILLION | +52% |
PROFIT BEFORE TAX | 2.294 BILLION | +112% |
PROFIT AFTER TAX | 2.292 BILLION | +110% |
INVESTMENT INCOME | 2.261 BILLION | +118% |
TOTAL COMPREHENSIVE INCOME | 1.703 BILLION | +11% |
NET CASH FROM OPERATIONS | 255 MILLION | -42% |
NET ASSET VALUE PER SHARE (Kshs.) | 20.75/= | +37% |
EANINGS PER SHARE (Kshs.) | 3.79/= | +109% |
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