Centum Investment Company Plc has released its Annual financial statements for the year ended 31st March 2023, noting that the company performance declined during the year, with the company’s profit declining further by 248.5% to a loss of Kshs 7.3 billion from a loss of Kshs 2.1 billion in 31st March 2022.
Read more: Centum Issues a Profit Warning
The loss is attributed to the TRDL Board of Directors’ decision to impair the balance of the unsold assets from its balance sheet, valued at Kshs 3.9 billion, which led TRDL to incur a loss of 7.1 billion, up from the loss of Kshs 2.3 billion in 31st March 2022
Last year TRDL’s Board of Directors resolved to offer its assets for sale to its shareholders, including all the development rights available across the mixed-use development as well as interests in its subsidiary utility companies. Centum Plc took up the offer and decided to acquire the balance of the underdeveloped land, thus leading to TRDL impairing the assets from its balance sheet.
Read more: Centum Announces Shares Buyback As Losses Persist
“The sale of the developments rights by TRDL on 31st March 2023 has enabled the entity to extinguish its key liabilities, which include the USD 50 million debt,” said Centum
However, the other Real Estate investments continued to record improved performance, with the profits increasing to Kshs 2.1 billion from Kshs 0.1 billion on 31st March 2022. This was attributable to the increase in fair value gains on the investment properties to Kshs 2.1 bn from Kshs 0.5 billion on 31st March 2022.
The company notes they are optimistic that the key initiatives they have pursued will positively impact the shareholders’ value and returns.
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