Positive returns in the real estate business and a drop in liabilities has seen Centum Investment Company report a 6.1 per cent growth in net profits to Sh472 million for the half-year period ended September 30, 2025.
The easing in liabilities saw the company generate strong free cash flows of Sh703 million in the period under review, which was partly applied in paying off debt.
Centum Group CEO James Mworia said a reduction in liabilities strengthened the Centum balance sheet, as Net Asset Value per share increased by three per cent to Sh68.75 from Sh66.93 as at 31st March 2025.
“The first half of the 2026 financial year marks good progress made across the key strategic focus areas in line with our Centum 5.0 strategy,” said Mworia.
The debt repayment saw borrowings reduce 12per cent from Sh690 million in March 2025 to Sh605 million in September 2025, helping to cut finance costs by 66per cent.
Further debt repayments have been made after September 2025, reducing the total outstanding borrowings to Sh440 million.
As a Nairobi Securities Exchange-listed investment holding company, Centum’s business model is identifying compelling investment opportunities, adding value to scale them up and exiting at an appropriate time and price.
“Our focus in the second half of 2026 financial year remains on driving cash generation and operating profitability within portfolio companies, monetizing selected investments to recycle capital into high-yielding, liquid assets, disciplined cost management and paying down debt,” said Dr Mworia.
Total Company assets decreased marginally by one per cent to Sh49.9 billion as at 30th September 2025 from Sh50.6 billion as at 31st March 2025 following repayment of shareholder loans, while total liabilities declined by 20per cent, reflecting repayment of debt and other liabilities.
The Group recorded a six per cent improvement in profit after tax on account of better performance in the trading and real estate businesses and recognition of higher tax credit.
The ongoing Centum share buyback program initiated in October 2024 saw a total of 150,800 shares repurchased by June 2025 at an offer price of Sh9.51 per share, representing 0.23per cent of the buyback target.
“Our share price has consistently traded above the buyback threshold of SH 9.51 since beginning of the buyback on 19th December 2024, reflecting the success of the initiative,” said Dr Mworia.
“We are confident that the Centum 5.0 strategy will continue to deliver improved returns, underpinned by a strong emphasis on value optimization and free cash flow generation,” said Dr Mworia. “Centum remains committed to its mission of delivering tangible wealth by building extraordinary enterprises in Africa.”
by JACKTONE LAWI
