Centum Investment Company Ltd.
Par Value: 0.50/-
Closing Price: 42.00
Total Shares Issued: 665441775.00
Market Capitalization: 27,948,554,550
FY Trading sales 9.401660b vs. 8.140574b +15.491%
FY Trading business direct and other operating costs [8.204607b] vs. [7.461659b] +9.957%
FY Trading profit 1.197053b vs. 678.915m +76.319%
FY Income from financial services 4.074964b vs. 4.072050b +0.072%
FY Financial services funding and other costs [3.884669b] vs. [3.487560b] +11.386%
FY Operating profit from financial services 190.295m vs. 584.490m -67.443%
FY Investment and other income 7.345806b vs. 6.533056b +12.441%
FY Realised gains on disposal of investments 1.033362b vs. 5.419394b -80.932%
FY Operating and administrative costs [1.121877b] vs. [1.435310b] -21.837%
FY Finance costs [1.048371b] vs. [1.981966b] -47.104%
FY Share of associates profits 1.346935b vs. 1.074114b +25.400%
FY Profit before tax 8.943203b vs. 10.872693b -17.746%
FY Profit after tax 8.310291b vs. 9.947630b -16.460%
Basic EPS 10.93 vs. 11.75 -6.979%
Total Assets 88.385b vs. 78.054b +13.236%
Total Equity 49.473b vs. 43.258b +14.367%
NAV per share 67.34 vs. 59.08 +13.981%
Closing cash and cash equivalents 5.639b vs. 10.197b -44.699%
Dividend 1.20 vs. 1.00 +20.000%
Dividend 1.20 per share
FY Group Portfolio investments 65.464b versus 57.021b
FY Group Total Assets 88.385b versus 78.054b
FY Company NAV 67.34 versus 59.08
Company recorded a 14% growth in the book value of shareholder funds versus a 22% decline in the NSE
Consolidated profit after tax declined by 16% on account of lower gains on disposal compared to the previous period.
Adjusted for the gains on disposal, the group profit after tax increased by 66% year on year
Beverage business +37% in trading profit
Operating Profit of the financial services business dropped by 67% primarily as a result of Sidian Bank's performance. 168m loss over 12 month period ended March 2017
Centum completed an exit of 26.43% stake in Kenya Wine agencies limited KWAL realising a gain of 1.1b
Our focus in the real estate sector is master development.
Strong Earnings cheap share very nimble and risk adjusted up risking and de risking strategy.
Group six month Period ended 30th September 2016
H1 Investment and Other Income 8.490289b versus 8.384441b +1.26%
H1 Operating and admin costs [5.130138b] versus [5.068977b] +1.20%
H1 Finance Costs [945.641m] versus [1.260767b] -24.99%
Share of associate profits 345.651m versus 192.264m
H1 Profit before Tax 2.760161b versus 2.246961b +22.83%
H1 Profit after Tax 2.057886b versus 1.907591b +7.87%
H1 EPS 2.57 versus 2.56
Investment Portfolio 62.802b versus 57.021b
Cash and Cash equivalents 5.384b versus 10.197b
Other Assets 17.697b versus 10.836b +63.31%
H1 Borrowings 19.327b versus 16.356b
Company NAV 61.12 versus 59.08
a challenging macro environment
Co. recorded a 5% growth in the book value of shareholder funds which closed at 40.7b
NAV has increased from 13.8 in 2010 to 61.12 as at 30th September 2016
The Key profitability drivers during the period were
1. Consolidation of longhorn Publishers financial results for the first time
2. improved profitability in the Groups Portfolio Companies
3. Lower finance costs as a result of reduced forex losses on US Dollar denominated borrowings and capitalisation of interest during construction for the Groups real estate projects
In the prior year the Group completed an exit in Aon Insurance Brokers limited and disposed of a portfolio of listed securities resulting in a realised gain of 1.7b. No exit of similar magnitude this reporting period
Bottling subsidiary invested 1.7b in capital expenditure on a new PET Line
During the Period the Company closed an 18 month bridge facility of $30m. with FirstRand Bank Limited
Centum Investment ‏@Centum_Inv Portfolio #CentumHY2017
They did not repeat the one off AON extraordinary gain of 1.7b and therefore this H1 Performance is strong when you account for that fact.
FY Investment and other income 24.165074b vs. 11.826150b +104.336%
FY Operating and administrative costs [11.290209b] vs. [2.458356b] +359.259%
FY PBT 10.872693b vs. 8.817159b +23.313%
FY PAT 9.947630b vs. 7.942432b +25.247%
FY Other comprehensive income, net of tax [2.346996b] vs. 0.821719b -385.620%
EPS 11.75 vs. 10.45 +12.440%
Total Equity 43.258b vs. 38.555b +12.198%
Closing cash & cash equivalents 10.197b vs. 9.006b +12.198%
Dividend 1.00 vs.
Zero dividend Policy since 2009. Final Dividend 1.00 a share
Book Value of shareholder funds [NAV] grew +23% to 39.3b
NAV 59.08 a share 31st March 2016
Total group consolidated assets grew by 25% to 51.5b primarily reflecting the increase in value of the investment portfolio. The Company determines the Fair Value of its non subsidiary investments in accordance with international Private Equity and Venture Capital Valuation [IPEV] guidelines, while subsidiaries are held at their Net Asset Values
Listed Equities as a proportion of the marketable securities portfolio 23% as at March 2016 [versus 70% March 2015]
Net Debt 6.559b versus 3.896b
Gearing 16.7% versus 12.2%
Table 3 Third Party Equity Funding
Two Rivers Old Mutual 6.4b
Two Rivers ICDC 0.5b
Two Rivers AVIC 6.5b
Table 4 Value Realisation through Exits
2015 UAP 5.2b
2016 AON 1.0B
@Centum_Inv We have gains of KES 5.4 billion realized on the Exit of AON and disposal of quoted and unquoted investments #CentumFY2016
@Centum_Inv This shows a strong performance on total returns despite the effect of the UAP exit in 2015#CentumFY2016
@Centum_Inv's objectives under the Centum 3.0. H/T ‏@CapitalFMKenya
Strong Earnings. Some well timed unloads. Incredible outperformance when compared to the benchmark equity Indices.
The Dividend of a Shilling will be well received.
Investment and other income 8.384b vs. 1.897b +341.96%
Operating and administrative costs [5.068b] vs. [0.677b] +648.60%
Finance costs [1.261b] vs. [0.262b] +281.30%
Profit before tax 2.247b vs. 1.285b +74.86%
Profit after tax 1.907b vs. 1.230b +55.04%
Other comprehensive income [1.115b] vs. 2.061b -154.10%
Total comprehensive income 0.792b vs. 3.291b -75.93%
EPS 2.56 vs. 1.79 +43.01
Total Assets 77.613b vs. 72.340b +7.29%
Closing cash and cash equivalents 6.564b vs. [1.031b] +736.67%
Company Profit before Tax increased +132% attributable to a +100% increase in Total Investment income, from 1.2b to 2.4b.
We significantly reduced our exposure to listed equities with our marketable securities portfolio from 70% to 25%
Increased our allocation of cash and fixed income from 20% to 68% of the Portfolio.
@KevinNganga If you strip out AonMinet self off gain, Centum has dropped in operating income..
One Off Gain from AonMinet flattered the bottom-line.
Full Year Earnings through 31st March 2015 versus through 31st March 2014
Group Full Year Investment and Other Income 11.826b versus 4.883b +142.418%
Group FY Operating and Admin Costs [2.458b] versus [0.796b] +208.79%
Full Year Finance Costs [998m] versus [469m] +112.79%
Full Year Share of Associate profits 448m versus 393m
Full Year Profit before Tax 8.817b versus 4.011b +119.82%
Full Year Profit after Tax 7.942b versus 3.055b +159.96%
Full Year Earnings Per Share 10.44 versus 4.54 +129.95%
Group Portfolio Value 68.91b versus 27.39b
Total Assets 72.34b versus 29.597b
Full Year Borrowings 9.983b versus 5.492b
Closing Cash and cash equivalents 9.006b versus [0.447b]
Over the last 6 years, cumulative increase in the book value of shareholder funds has been 441%
Power Amu Power
Centum 65% stake in KREP Bank
Two Rivers Development
Pearl Marina Devlopment
vipingo Land 10,500 acres
King Beverage limited [ref Carlsberg]
Startling good Full Year Earnings
Centum reports H1 2014 Earnings versus H1 2013
H1 Dividend Income 489m versus 364m +34%
H1 Interest Income 83m versus 94m [12%]
H1 Fund Management 337M versus 0
H1 Realised Gains 1.017b versus 307m +231%
H1 Unrealised Gains on Bonds [37m] versus 369m
H1 Income 1.897b versus 1.198b +57%
H1 Portfolio Costs [677m] versus [219m] +209%
H1 Finance Costs [262m] versus [298m]
Share of Associate Profit 327m versus 352m
H1 Profit before Tax 1.285b versus 1.033b +24.00%
H1 Profit after Tax 1.230b versus 0.892b +38%
H1 Other Comprehensive Income 2.062b versus 0.576b +258%
42% growth in total assets as at 30 September 2014
@Centum_Inv Graph showing pseudo exponential growth of Market Cap. Where else to take your money?
@Centum_Inv @2riversdevt_ke 2rivers the largest retail mall in Sub Saharan Africa (ex S. Africa) let over 50%
@Centum_Inv The first six months gross return at KES 4.912 B ex real estate (which accounts for a third of portfolio) #centumhalfyear
Investor briefing Half year ended 30 September 2014
Financial Results for the Year ended 31st March 2014
Full Year Investment Income 4.883b versus 3.906b +25.012%
Operating and Admin costs [0.796b] versus [0.520b] +53.076%
FY Finance Costs [0.469b] versus [0.401b]
FY Share of Associate Profits 0.393b versus 0.263b
FY Profit before Tax 4.011b versus 3.248b +23.491%
FY Profit after Tax 3.055b versus 2.509b +21.761%
Other Comprehensive Income 3.576b versus 1.092b
FY Earnings Per Share 4.54 versus 3.77 +20.42%
In the FY 2014 company recorded a 6.8b increase in net worth.
Our Exposure to Private Equity and Real Estate and Infrastructure has increased from 59% to 83% during the strategy period.
5.3b shillings and 19% of Portfolio deployed outside Kenya
Two Rivers project is now substantially funded.
They have largely exited the listed markets.
The Portfolio is gaining Traction.
Its inexpensive on a PE Basis.
H1 2013 Earnings through September 2013
H1 PBT 1.033b versus 836m +23.564%
H1 PAT 892M versus 806m +10.669%
H1 EPS 1.34 versus 1.21 +10.743%
NAV increased +7.00% over this Period
Share Price trading at a 4% Premium to NAV
Referencing 2 Real Estate Projects Two Rivers Retail Mall and Pearl Marina project
Conclusions Looks Fully priced near term at a Premium of 4% to NAV.
FY through March 2013 versus FY through March 2012
FY Investment Income 3.906b versus 1.272b +207.07%
Operating and Administrative Expenses [520m] versus [269m] +93.308%
Finance Costs [401m] versus [229m]
Share of Associate Profits 263m versus 594m
FY PBT 3.248b versus 1.368b +137.42%
FY PAT 2.509b versus 1.189b +110.01%
FY EPS 3.77 versus 1.79 +110.61%
Net Asset Value per share 24.23
Speaking to a Narrowing of the NAV Discount to 9.5% last.
Private Equity 54% of Total Assets
Real Estate accounts for 26% of Total Assets
FY PBT +137.42% and FY EPS +110.61% evidently confirm a Strong FY Earnings Release which was signalled in the H1 Earnings Release.
Centum has downsized its Listed Portfolio to 19% of its Total Portfolio.
Private Equity is 54% and Real Estate now 26%.
Centum has exhibited higher beta but in a Rising EAC Space I expect it to outperform to the Upside.
6 Months Through Sep 2012
Income 749.296m versus 728.352m +2.8755%
Expenses 228.585m versus 199.431m
Finance Costs 102.799m versus 42.485m +141.96%
Share of Profits Associate Companies 316.135m versus 299.001m
H1 Profit Before Tax 805.631m versus 793.177m +1.5701%
Earnings per Share 1.21 versus 1.19 +1.68%
Full Year through March 2012 versus FY through March 2011 Swot Analysis
Investment Income 1.272b versus 2.261b -43.741%
Operations and Admin 269m versus 299m -10.033%
Finance Costs 229m versus 155m +47.7419%
Share of Associate Profits 594m versus 487m +21.971%
Profit Before Tax 1.368b versus 2.294b -40.366%
Profit After Tax 1.189b versus 2.292b -48.123%
Other Comprehensive Income [708m] versus [589m]
Total Comprehensive Income 481m versus 1.703b
Earnings Per Share 1.79 versus 3.44 -47.965%
Net Asset Value 20.57 per share +9.00%
Talking about listing of LongHorn
Talking about UAP Capital Raise
They have restructured the Portfolio substantially over the last 24 Months and deemphasised Exposure to the Listed Market. They will need to source Blocks of Capital in order to unlock their Plan.
Swot Analysis Group 6 months to Sep 2011
PBT 827m versus 837m
PAT 793m versus 846m -6.26%
EPS 1.19 versus 1.40 -15.00%
James Mworia said the company cut its exposure to the Kenyan stock market to 9 percent of its total portfolio from 26 percent during the period, adding that high yields in the fixed-income market had cushioned the earnings.
Centum trades on a Trailing PE of 4.195 but clearly the Implied Forward [extrapolating from H1] is a little bit higher. Centum is a non Dividend paying Scrip but is expected to generate Capital Gains.
Group Results to March 2011 versus FY to March 2010
PBT 2.261b versus 1.038b
PAT 2.292b versus 1.094b
EPS 3.79 versus 1.81
Total Assets increased by 54% to 15b
Real Estate and Infrastructure Business Value Appreciation of 41%
Company NAV 20.75 versus 15.14
Bonus Share 1 for every 10 Held
100 Acre Site Runda 300 Acre Site Entebbe
Extremely strong Results and a Cheap share.
Average Price Over the last 5 Weeks
Average Price Over the last 5 Months
No. Of Shares Traded Over the last 5 Weeks
No. Of Shares Traded Over the last 5 Months
Market Capitalization Over the last 5 Weeks
Market Capitalization Over the last 5 Months
Data Source: Nairobi Stock Exchange
Trading Day: 17 Nov 2017