CENTUM INVESTMENT COMPANY PLC
FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2025
The Board of Directors of Centum Investment Company Plc is pleased to announce the audited financial results of the Company and Group for the year ended 31 March 2025 as set out below:
C ENTU M
CONSOLIDATED AND COMPANY STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2025
CONSOLIDATED C0I•IPANY | |||||
KES '000 | |||||
Trading business: | |||||
Net income from trading businesses | 98,511 | 507,741 | |||
Direct and other operating costs | (988,3391 | |1,213 8JJ] | |||
Loss from trading businesses | (489,828) | l705,903j | |||
Financial services: | |||||
Income from financial services | 565,153 | 4,099.417 | |||
Funding and other costs | (474,90) | 4599788) | |||
Profit/lloss) from financial services | 90183 | (500,37f | |||
Real Estate | |||||
Gross profit from residential unit sales | 326790 | 41059 | |||
Fair value gains on investment property | 1,972,364 | 3,698,481 | |||
Gain on disposal of investment properties | 101,133 | 55,696 | |||
Other income | 25,887 | 43.465 | |||
Operating costs | (921,63A | /63,517l | |||
Operating profit from Centum Real Estate | 1,504,540 | 3,604,184 | |||
Funding income/ [costs) | 5,112 | |1.091,091] | |||
Profit from real estate investments | 1,509,982 | 2,513,090 | |||
Two Rivers Development | |||||
Sales and investment income | A07,382 | 364.940 | |||
Direct and other operating costs | !398,254l | 442,0331 | |||
Finance costs | {25J,83i l | 1888,365} | |||
Loss from Two Rivers Development Group | 1242,703] | 1965,G581 | |||
Two Rivers Special Economic Zone | |||||
Sales and investment income | 114,7A3 | 80 | |||
Fair value gains on investment property | 1.22g,716 | 3.399.103 | |||
Funding and other costs | 11,256,0791 | lA79,A80l | |||
Profit from Two Rivers Special Economic Zone | 88,380 | 2,919,683 | |||
Investment operations: | |||||
Investment and other income | 1 9J7250 | 807A36 | 13A9207 | 1.152023 | |
Operating and administrative costs | (587,955} | |55S,917] | (S32,111] | |579,711l | |
Finance costs | (199,818l | 103,38S] | (199,818] | |291,S88I | |
Profit/lloss) from investment operations | 1,179,468 | 1352,897) | 517,247 | 277,624 | |
Profit before tax | 2,135,482 | 2,908,145 | 517,247 | 277,624 | |
Income tax expense/(credit] | 11,322,665) | I304 404I | 29,891 | 278,345 | |
Profit for the year | 812,817 | 2,603,741 | 547,138 | 555,969 | |
Other comprehensive income/|lossl, net of tax | 2,151,793 | (62,380] | 3,881,501 | 1,918,39S | |
Total comprehensive income for the year | 3,264,610 | 2 54,36J | 4,4J1,642 | 5,504,365 | |
Attributable to: | |||||
Owners of the parent | 3,699,669 | 2,765,05 | |||
Non-controlling interest | {636,8591 | 203,6901 | |||
Total comprehensive income for the year | 3,264,610 | 2,541,361 | |||
Earnings Per Share-Basic | 2.05 | 4.27 | |||
CONSOLIDATED AND COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2025
CONSOLIDATED | C0I PANY | |||||
KES million | Plar 2025 | Plar 2024 | liar 2025 | Plar 2024 | ||
Assets: | ||||||
Investment portfolio | 58,398 | 50,289 | ||||
Loans a nd a dvances | 27 | |||||
Cash and cash equivalents | ,43 | 53 | 320 | |||
Other assets | 1 6,072 | 316 | 331 | |||
Total Assets | 50,658 | 48,083 | ||||
Liabilities: | ||||||
Borrowings | 17,855 | 16,591 | 690 | 1,951 | ||
Other liabilities | 21,251 | 19,817 | 5,131 | 5,090 | ||
Total Liabilities | 36,408 | 6,121 | 7,041 | |||
Total Equity | 43,24A | 39,76A | 44,537 | 41,042 | ||
Total Capital and Liabilities | 82350 | 76,172 | 50,658 | 48,083 | ||
NAV per share (KES.) | ||||||
CONSOLIDATED AND COMPANY STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 MARCH 2025
CONSOLIDATED CONPANY | |||||
KES mi££ion | Mar 2025 | Mar 2024 | I•Iar 2025 | Mar 2024 | |
Opening cash and cash equivalents Net cash from operations Net cash generated from/( used in] investing activities Cash used in financing activities Effect of movements in exchange rates on cash held | 546 458 1,356 1.934 | 2,909 3,805 587 1 582) (1731 | (576) 462 946 (1.465) 141 | 1400) 3,177 |2,264) h,056) (331 | |
Closing cash and cash equivalents | *26 | 546 | (G37) | 1576) | |
Cash and cash equivalents Bank overdraft | 1,12A {h98l | 1,A31 (8851 | 53 (6901 | 320 (896) | |
Closing cash and cash equivalents per cashflow statement | é26 | (637) | 15761 | ||
CONSOLIDATED AND COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2025
CONSOLDATED COMPANY | |||||
KES million | Mar2025 | Mar2024 | Mar2025 | Mar2024 | |
Share capital | 333 | 333 | 333 | 333 | |
Treasury shares | (991 | (671 | 991 | (67) | |
Share premium | 590 | 590 | 590 | 590 | |
Other reserves | 1,862 | (5061 | 23,023 | 19,158 | |
Retained ea rnings | 39,22 | 38,491 | 20480 | 20,818 | |
Proposed dividends | 210 | 210 | 210 | 210 | |
Non -controlling interests | 727 | 713 | |||
Total | 43,245 | 39,764 | |||
Financial year 2025 marks a pivotal year for Centum, with significant progress in strengthening our balance sheet, reducing acquisition-related debt, and generating strong operating cash flows-all in line with our Centum 5.0 strategy.
Strategic Achievements in FY2o25
Debt reduced by Kes 1.2Bn, lowering finance costs by 32%.
NAV per share increased by 9% to Kes 6d.9.
Free cash flow of Kes 3.1Bn generated.
Monetized part of our Sidian Bank stake.
Improved cash profitability across most portfolio companies.
Company-Level Performance
Centum operates as an investment holding company. Our strategy centers on identifying attractive opportunities, creating value in portfolio companies, and monetizing this value through dividends, loan repayments, and strategic exits.
The Company recorded a profit after tax of Kes 5ñ7 million, with profit before tax increasing by 86% to Kes 517 million, driven by a 17% growth in investment income to Kes 1.3 billion. Operating expenses rose by a modest 8%, in line with inflation.
A key milestone during the year was the continued reduction in investment acquisition debt, with repayments of Kes
1.2 billion, bringing the outstanding balance to Kes d90 million (down from Kes 1.9 billion the previous yearj. This contributed to a 32% drop in finance costs, which is aligned with our strategic objective of improving net cash flows and financial efficiency.
The Company generated free cash flows of Kes 3.1 billion in FY2025, which included annuity income, repayment of shareholder loans and proceeds from disposal of investments. While lower than the Kes 6.d billion in the prior year- primarily due to the one-off Sidian Bank stake sale-the cash generated was prudently redeployed toward portfolio investments and further debt reduction. As of 31 March 2025, net debt to equity stood at a conservative 1.5%.
5roup-Level Performance
It is important to note that the Group financials include non-cash fair value movements and deferred tax adjustments, which do not reflect the underlying cash profitability of the Company.
The consolidated results reflect Centum's role as an investment company, aggregating performance across subsidiaries, associates, and joint ventures. These financials are compliance-d riven and include accounting entries that may not directly reflect the core business's cash performance.
Consolidated total comprehensive income improved by 28% to Kes 3.2 billion. However, consolidated profit after tax declined to Kes 813 million (from Kes 2.d billion), largely due to:
Lower fair value gains on Centum Real Estate and Special Econom ie Zone investment properties, following an exceptional prior-year transaction.
A higher deferred tax charge of Kes 1.2 billion, driven by both asset reclassifications and a change in the tax rate for land not held for sale (from 5% to 15%].
Despite these non-cash impacts, the underlying cash performance across most business segments improved during the year.
Company Balance Sheet Highlights
Total Company assets increased by 5% to Kes 51 billion, while total liabilities declined by 13%, reflecting reduced debt levels. Net Asset Value per share rose by 9% to Kes dd.93 (from Kes d1.d8 in March 202a], underlining the continued value accretion across the portfolio.
Capital Allocation and Shareholder Returns
Under our ongoing share buyback program initiated in October 202a, a total of 150,800 shares had been repurchased by June 2025 at an offer price of Kes 9.03 per share, representing 0.23% of the buyback target.
In line with our disciplined capital management, the Board has proposed a final dividend of Kes 0.32 per share, maintaining the payout level from the prior year This amounts to Kes 210 million, subject to shareholder approval.
Outlook
Our focus in FY202d remains on:
Driving cash generation and operating profitability within portfolio companies.
Monetizing selected investments to recycle capital into high -yielding, liquid assets.
Continuing disciplined cost and debt management.
We intend to continue allocating capital toward high -yielding, liquid marketable securities and scalable businesses that enhance annuity income and preserve long-term capital.
We are confident that the Centum 5.0 strategy will continue to deliver improved returns, underpinned by strong emphasis on value optimization and free cash flow generation.
Centum remains committed to its mission of delivering tangible wealth by building extraordinary enterprises in Africa.
For further information please visit the Centum website (https://www.centum.co.ke) By Order of the Board,
Dr. James Mworia, CFA, CGMA
Group Chief Executive Officer and Manag ing Director