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Company Data
 
Centum Investment Company Ltd.
http://centum.co.ke/
Par Value:                  0.50/-
Closing Price:           32.35
Total Shares Issued:          665441775.00
Market Capitalization:        21,527,041,421
EPS:             6.68
PE:                 4.843
 

Centum Investment Company PLC FY 2018/ 19 results through 31st March 2019 vs. 31st March 2018
FY Sales 10.864087b vs. 10.171132b +6.813%
FY Direct and other operating costs [9.746717b] vs. [9.102223b] +7.081%
FY Trading profit 1.117370b vs. 1.068909b +4.534%
FY Income from financial services 3.502548b vs. 2.844698b +23.125%
FY Funding and other costs [3.963785b] vs. [3.385289b] +17.089%
FY Operating loss from financial services [461.237b] vs. [540.591m] -14.679%
FY Investment and other income 9.852606b vs. 5.712840b +72.464%
FY Operating and administrative costs [2.128453b] vs. [2.028205b] +4.943%
FY Finance costs [2.517605b] vs. [1.761201b] +42.948%
FY Share of profits from associates and joint ventures [1.423835b] vs. 694.898m -304.898%
FY Profit before tax 4.438846b vs. 3.146650b +41.066%
FY Profit from continuing operations 4.120246b vs. 2.656298b +55.196%
FY Profit from discontinued operation, net of tax vs. 135.600m %
FY Profit for the year 4.120246b vs. 2.791898b +47.579%
Basic EPS 6.68 vs. 3.96 +68.687%
NAV per share 79.05 vs. 73.16 +8.051%
Closing cash and cash equivalents 5.284b vs. 4.074b +29.701%
Dividend 1.20 vs. 1.20
Total Assets 101.764b vs. 96.288b +5.687%
Total Equity 51.576b vs. 50.897b +1.334%

DIVIDEND DECLARATION
The Board of Directors has recommended the payment of a dividend equivalent to KES 1.20 per share for the financial year ended 31 March 2019 12018: KES 1.20 per share).

FINANCIAL PERFORMANCE
The year ended 31 March 2019 marked the end of our five year strategy period dubbed Centum 3.0. Over that five year period, the Companys assets grew by 249% from KES 28.8 billion to close at KES 71.6 billion as at 31 March 2019. N. Asset Value (NAVI per share on the hand grew by 229% from KES 34.5 to KES 79 as at 31 March 2019. The NAV per share has grown at a compounded annual growth rate of 18% since the commencement of our current strategy period in 2014, underscoring the Groups commitment to sustained value creation for its shareholders. This growth was primarily funded by internally generated funds and borrowings as the Company elected not to raise new equity. Through either full or partial exits in our investment portfolio over the strategy period, we raised KES 36.3 billion in exit proceeds, which resulted in realised capital gains of KES 24.3 billion. These internally generated funds were complemented by two corporate bond raises amounting to KES 10.2 billion and a bank term loan of KES 7.5 billion. Of the two bond raises, the first bond of KES 4.2 billion which matured in September 2017 was successfully redeemed through internally generated funds. Investors in the equity linked component (ELNI of that bond received an additional KES 191 million, representing a total equity upside of 15 percent of the par value in line with the terms of the issue, which translated to an annual internal rate of return of 14.9 percent for ELN investors. The Companys gearing over the strategy period was on account of new projects, under our development strategy focus. The respective real estate projects are now cash generative and able to raise non recourse debt on their own. Accordingly, as communicated in our previous investor briefing, we plan to deleverage the Company through payment of all maturing liabilities between 2019 and June 2020.
GROUP PERFORMANCE
The Group recorded a consolidated profit growth of 48% from KES 2.7 billion in 2018 to KES 4.1 billion for the financial year ended 31 March 2019. The primary performance drivers under our respective three business units are set out below. I. PRIVATE EQUITY During the year, the Group completed the disposal of GenAfrica Asset Managers Limited, realising a gain of KES 1.2 billion. Through this transaction, the Group achieved a holding period IRR of 29% for the investment, demonstrating our track record in growing shareholder wealth through an optimal investment strategy, portfolio management and successful exits. The Group s beverage business reported a flat performance in revenues, with a nominal decrease of 3%. This performance was largely on account of weather related distribution channel disruptions in 2018 and depressed consumer demand in the fir, half of the year. This trend has however reversed in the quarter ended 31 March 2019, with revenues growing by 22% compared to a similar period last year. The Groups banking subsidiary, Sidian Bank Limited, has seen significant improvement in its performance compared to the prior year. The banks focus on growing its non funded income through growth in trade finance business has seen non funded income increase by 44% compared to 2018. Notably, non funded income was higher than net interest income during the period while trade finance balances have grown by 77% over the last 12 months, demonstrating the successful implementation of the banks new strategic focus. The bank has also recorded a 10% growth in total assets and 14% in customer deposits over the twelve-month period ended 31 March 2019. To support this growth, we recapitalised the bank in 2018 through a full subscription to its KES 1.2 billion rights issue. The bank also closed on a KES 1.2 billion Tier II Capital Facility from Denmarks Investment Fund for Developing Countries (IFU). The banks strong capital base, balance sheet and trade finance book have provided it with a strong growth platform that saw it return to profitability in the quarter ended 31 March 2019.
Within the trading subsidiaries segment, Longhorn Publishers Limited recorded a 141% growth in profitability over the twelve month period to 31 March 2019, driven by a strong top line performance, on account of both geographical and product diversification.

REAL ESTATE Our focus in the real estate portfolio is monetisation of our land banks through in fill projects development or sale of development rights. During the year, we closed a number of development rights sales in our land banks at valuation multiples that are several times our book carrying value. In addition, residential projects across our three land banks have recorded strong pre sale performance over the year. We are currently developing 3,000 residential units, of which the first phase of 1,200 units is under construction. Over a ten-month period, we have attained a 51% (606 units) pre sale level on the units under construction, with a sales value of KES 5.2 billion . We also broke ground at our Vipingo Industrial Park, where some of the referenced development rights were sold. The underlying activity and sales in the real estate portfolio saw a growth of KES 3.3 billion in fair value gains across the portfolio.

MARKETABLE SECURITIES The Group held a marketable securities portfolio of KES 3.1 billion as at 31 March 2019 (2018 KES 3.4 billion). During the period, the portfolio recorded a realised cash investment income of KES 400 million. Consistent with the overall performance of markets, particularly the NSE, the portfolio valuation decreased by KES 533 million during the year.

OUTLOOK
We have commenced implementation of our new 5 year strategy dubbed Centum 4.0 that covers the period April 2019 to March 2024. Under the new strategic plan, our business has been simplified into 3 business units, namely Private Equity, Real Estate and Marketable Securities. Across the three business units, we are targeting to grow our total returns at an annual rate of 20%, with specific targets for cash returns. We believe that the momentum and scale achieved over Centum 3.0 provides us with a strong growth platform for both the Private Equity and Real Estate businesses. Specifically, for Private Equity, Centum will be investing between KES 10 billion and 15 billion over the next 5 years in a fund to be managed by its wholly owned subsidiary, Centum Capital Partners Limited. Within Real Estate, our focus over the next five years will be continued activation of our development sites and land bank monetisation through infill projects and sale of development rights. Our current development pipeline comprises of 3,000 residential units across our existing development sites. A further 2,000 are at the concept stage. In addition to our existing sites, we are actively pursuing opportunities in affordable mid-market housing where we look to develop over 5,000 units over the
next five years. We have received committed funding for this development pipeline. On land development rights sales, some transactions were closed during the year while we have a rich pipeline of sales under negotiation. On 10 June 2019, we entered into agreements to sell our total combined shareholding in Almasi Beverages Limited and Nairobi Bottlers Limited to Coca Cola Beverages Africa Limited at a combined valuation of KES 19.5 billion. This is an event subsequent to the balance sheet date and the realised gains are therefore not reflected in the results for the year ended 31 March 2019. The two investments are carried at KES 16.8 billion on the balance sheet as at 31 March 2019. We expect to complete the transaction in the financial year ending 31 March 2020. The proceeds from these transactions will be applied towards repaying our current US Dollar denominated bank term loans of KES 7.5 billion, which will result in finance cost savings of KES 700 million. The balance of the proceeds will be invested in our Private Equity and Marketable Securities portfolios.

Centum plc enters into agreement to sell their shareholding in Almasi beverages and Nairobi bottlers at KES 19.5 Billion. #CentumFY2019 @MSkiplangat
https://twitter.com/MSkiplangat/status/1138676631600586757

The markets are presenting us with once in a decade opportunity says @MworiaJ of @CentumPLC at #CentumFY2019 @TwoRivers_KE @CapitalFMKenya @NSE_PLC @MetropolTVKE @SidianBank
https://twitter.com/alykhansatchu/status/1138674557856964608

asset and NAV growth over the last five years #CentumFY2019 @CentumPLC
https://twitter.com/CentumPLC/status/1138671781336821761

We completed the exit of GenAfrica at 30% IRR. #CentumFY2019 @MworiaJ @CentumPLC
https://twitter.com/RichFrontiers/status/1138673562569596928

Summary of our portfolio class as at end of March 2019 #CentumFY2019
https://twitter.com/CentumPLC/status/1138679416874291200

Conclusions

Significant progress. Attended the Investor Briefing and a determination to narrow the NAV versus share price Gap.

6 months through 30th September 2018 versus through 30th September 2017
Sales 4.818287b versus 4.772045b
Direct and Operating Costs [4.428471b] versus [4.233126b]
Trading Profit 389.816m versus 548.919m
Operating Loss from Financial Services [91.833m] versus [111.481m]
Investment and Other Income 4.093440b versus 2.203492b
Operating and Admin Costs [683.689m] versus [524.585m]
Finance Costs [1.230388b] versus [557.253m]
HY PBT 2.392198b versus 1.765589b
HY PAT 2.079909b versus 1.631461b
HY EPS 3.40 versus 2.07
HY Comprehensive Income 1.524082b versus 1.928075b

Centum completed disposal of the companys stake in GenAfrica Asset Managers Limited which saw it book Sh1.2 billion.
http://bit.ly/2AmrBUd

The companys Private Equity business reported a 300 percent profit growth to Sh1.5 billion from Sh513 million recorded last year.
In a statement released Sunday, the company said that all of Centums four business units recorded a robust performance in the period.
In the Real Estate Business Unit, revenue potential for pre sales achieved was Sh1.8 billion as at September 30, 2018, with a corresponding profit potential of Sh460 million, the statement read.
The firm is engaged in the Two Rivers Development in Nairobi, Vipingo Development in Kilifi and Pearl Marina Development in Uganda.
The Marketable Securities unit held a portfolio of Sh3.5 billion, which recorded a realised cash investment income of Sh130 million over the past six months. The companys portfolio comprises Sabis International School Runda, two energy projects and an agribusiness.
Total assets increased from Sh66 billion as at March 32, 2018 to Sh67 billion as at September 30, 2018.
The company closed the half year period with a cash balance of Sh1 billion.
The companys debt service capacity remains strong with Debt Service Coverage Ratio (DSCR) consistently above the minimum level set under its various debt covenants, said Centum Group CEO James Mworia in a statement.
This half year profit marks a recovery for the company compared to the losses it suffered in the same period last year when its subsidiary Sidian Bank was hit by interest rate caps.

Conclusions

They are highly accomplished at upsizing and downsizing risk effectively.
1.2b was a one off

Centum Investment Company Limited FY 2017/18 results through 31st March 2018 vs. 31st March 2017
FY Sales 10.171132b vs. 9.401660b +8.184%
FY Direct and other operating costs [9.102223b] vs. [8.204607b] +10.940%
FY Trading profit 1.068909b vs. 1.197053b -10.705%
FY Income from financial services 2.844698b vs. 6.627312b -21.576%
FY Funding and other costs [3.385289b] vs. [3.644573b] -7.114%
FY Operating loss from financial services [540.591m] vs. [17.261m] -3,031.864%
FY Investment and other income 5.712840b vs. 8.379167b -31.821%
FY Operating and administrative costs [2.028205b] vs. [1.121876b] -80.787%
FY Finance costs [1.761201b] vs. [1.048371b] -67.994%
FY Share of associates profits 694.898m vs. 1.346935b -48.409%
FY Profit before tax 3.146650b vs. 8.735647b -63.979%
FY Profit from continuing operations 2.656298b vs. 8.169263b -67.484%
FY Profit from discontinued operation, net of tax 135.600m vs. 141.029m -3.850%
FY Profit for the year 2.791898b vs. 8.310292b -66.404%
Basic EPS 3.96 vs. 10.93 -63.769%
NAV per share 73.16 vs. 67.34 +8.643%
Closing cash and cash equivalents 4.074b vs. 4.657b -12.519%
Dividend 1.20 vs. 1.20
Total Assets 96.288b vs. 88.386b +8.940%
Total Equity 50.897b vs. 49.474b +2.876%

Company Presentation

FY Dividend 1.20 unchanged
+9% growth in the book value of shareholder Funds
FY Total Assets 66b +7%
NAV 73.1 versus 67.3 [21% CAGR since 2014]
Group's Fair value Gain on its investment properties decreased by 2.3b year on year.
11.381b of borrowings as at 31-Mar-2018

Consolidated Group Revenue is 13.7 Billion #CentumFY2018 @Centum_Inv
https://twitter.com/Centum_Inv/status/1006772450758098945

Decline in profitability is attributed to lower realized gains as recognition of GenAfrica disposal gains was deferred to FY 2019 #CentumFY2018
https://twitter.com/Centum_Inv/status/1006775196320190464

Decline in profitability is attributed to lower realized gains as recognition of GenAfrica disposal gains was deferred to FY 2019. Had the gains been booked, the company would have recorded 42% profit increase. #CentumFY2018

CEO @MworiaJ taking us through Centums Business Review We are currently active in 6 key sectors. #CentumFY2018
https://twitter.com/Centum_Inv/status/1006762191494754306

Total assets have increased by 2.3x for the period FY14 FY18 #CentumFY2018 @Centum_Inv
https://twitter.com/Centum_Inv/status/1006762781713018880

Conclusions

They have proven extremely adept at up and down risking their Projects [2 Rivers is an optimal Example where they are in at 0].
They are going to have upload more capital into the financial Services sector. They obviously would have looked a lot sharper had they been able to book their GenAfrica disposal gains in FY 18
There is a monster NAV discount which buyers can lean into.

Centum Investment Company PLC HY 2018 Results through 30th September 2018 vs. 30th September 2017
HY Sales 4.772045b vs. 4.121865b +15.774%
HY Direct and other operating costs [4.223126b] vs. [3.619903b] +16.664%
HY Trading profit 548.919m vs. 501.962m +9.355%
HY Income from financial services 1.585604b vs. 2.422458b -34.546%
HY Funding and other costs [1.697086b] vs. [1.851163b] -8.323%
HY Operating [Loss]/ profit from financial services [111.482b] vs. 571.295m -119.514%
HY Investment and other income 2.231220b vs. 1.932971b +15.430%
HY Operating and administrative costs [524.583m] vs. [250.177m] +109.685%
HY Finance costs [557.253m] vs. [354.536m] +57.178%
HY Share of profits from associates and joint ventures 568.236m vs. 345.651m +64.396%
HY Profit/ [Loss] before tax 2.166518b vs. 2.760161b -21.508%
HY Profit/ [Loss] after tax 1.631416b vs. 2.057886b -20.724%
EPS 2.07 vs. 2.57 -19.455%
Total Assets 91.909b
Total Equity 50.604b
NAV 69.74
HY Closing cash and cash equivalents 4.921b vs. 5.639b -12.733%

Conclusions

On a Trailing PE of less than 4, this is a cheap share.

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%

Company Commentary
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.

Conclusions

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

Company Commentary

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 &#8207@Centum_Inv Portfolio #CentumHY2017
https://twitter.com/Centum_Inv/status/798754919603802112

Conclusions

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.

Company Commentary

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
Total 13.4b

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
https://twitter.com/Centum_Inv/status/740422308268019712

@Centum_Inv This shows a strong performance on total returns despite the effect of the UAP exit in 2015#CentumFY2016
https://twitter.com/Centum_Inv/status/740424994627391489

@Centum_Invs objectives under the Centum 3.0. H/T ‏@CapitalFMKenya
https://twitter.com/CapitalFMKenya/status/740409547567828993

Conclusions

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.

Portfolio

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..
https://twitter.com/KevinNganga/status/664314047253336065?s=03

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]

Company Commentary

Over the last 6 years, cumulative increase in the book value of shareholder funds has been 441%
Power Amu Power
Akiira Geothermal
Financial Services
Centum 65% stake in KREP Bank
Real Estate
Two Rivers Development
Pearl Marina Devlopment
vipingo Land 10,500 acres
FMCG
Almasi Beverages
King Beverage limited [ref Carlsberg]

Conclusions

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%

Other Commentary

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?
https://twitter.com/Centum_Inv/status/535300836436738048?s=03

@Centum_Inv @2riversdevt_ke 2rivers the largest retail mall in Sub Saharan Africa (ex S. Africa) let over 50%
https://twitter.com/Centum_Inv/status/535309018928267264?s=03

@Centum_Inv The first six months gross return at KES 4.912 B ex real estate (which accounts for a third of portfolio) #centumhalfyear
https://twitter.com/Centum_Inv/status/535303328851558401?s=03

Investor briefing Half year ended 30 September 2014
http://www.centum.co.ke/index.php/all-documents/investor-briefings/58-centum-hy-2015-investor-briefing/file

Conclusions

Strong results.

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%
No Dividend

Company Commentary

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.

Conclusions

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%

Commentary
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%
No Dividend

Commentary
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

Conclusions

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%

Company Commentary

Net Asset Value 20.57 per share +9.00%
Talking about listing of LongHorn
Talking about UAP Capital Raise

Conclusions

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.

Conclusions

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

Conclusions

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: 18 Jul 2019
 
Downloads
 
  12-JUN-2019 ::  Financial Results FY2019
  Financial Results FY2019

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  12-JUN-2019 ::  FY19_Investor_Briefing_Presentation
  FY19_Investor_Briefing_Presentation

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  26-NOV-2018 ::  Half Year Results
  FINANCIAL RESULTS FOR THE SIX MONTH PERIOD ENDED 30 SEPTEMBER 2018

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