{"id":53684,"date":"2023-08-04T09:43:18","date_gmt":"2023-08-04T09:43:18","guid":{"rendered":"https:\/\/www.africa-press.net\/uganda\/all-news\/centum-investors-lose-shs10b-after-profit-warning"},"modified":"2023-08-04T10:50:11","modified_gmt":"2023-08-04T10:50:11","slug":"centum-investors-lose-shs10b-after-profit-warning","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/uganda\/all-news\/centum-investors-lose-shs10b-after-profit-warning","title":{"rendered":"Centum investors lose Shs10b after profit warning"},"content":{"rendered":"

Africa-Press – Uganda. <\/strong><\/span>At least 6.3 percent of investors\u2019 wealth in Centum Plc, has been wiped out on the Ugandan bourse following a profit warning, in which impairment provisions reduced projected profits.<\/p>\n

Uganda Securities Exchange (USE) trading data for the week ending August 1, 2023, shows that investors lost at least Shs10.44b in the investment firm after uncertainties emerged over its profitability.<\/p>\n

Centum, which is listed on both the Nairobi Securities Exchange and cross-listed on the USE, announced recently that its consolidated net earnings for the year ending March 31, 2023, will be 25 per cent lower than for the same period in 2022.<\/p>\n

The company has struggled to stay afloat due to debt-financed capital investments in its 58 percent-owned real estate subsidiary -Two Rivers Development (TRDL), which has increased its debt to Shs180.75 b ($49.73 m) from Shs60.25b ($16.57 m) from last year.<\/p>\n

\u201cCentum\u2019s consolidated financial performance in 2023 is expected to be impacted by impairment provisions on TRDL on account of Sh97.91b debt in addition to a high level of finance costs,\u201d said Dr James Mworia, Centum chief executive officer in a statement.<\/p>\n

As a result of the late July warning, the regional investment firm\u2019s share price fell from Sh243.77 to Sh228.83 between July 25 and August 1, as investors remained wary of losing money on a business that had frequently made dividend freezes.<\/p>\n

As part of its strategy to draw in international service companies, Centum obtained a special economic zone license in June that covered more than half of the land in its TRDL in Nairobi.<\/p>\n

The company increased the 106 acres it already owned for the zone – to be known as the Two Rivers International Innovation Centre – by 64 additional acres in an effort to attract technology companies, financial institutions, nongovernmental organizations, hotels, and professional service providers.<\/p>\n

\u201cFollowing the transaction, the Board of TRDL made a prudent decision to impair the balance of the unsold assets on its balance sheet,\u201d the statement reads in part.<\/p>\n

Impairment means that the value of assets has decreased, perhaps due to market conditions, changes in the industry, or other economic factors.<\/p>\n

As a result, the value of TRDL\u2019s assets on its balance sheet reduced.<\/p>\n

According to International Financial Reporting Standards (IFRS), Centum, the parent company is required to consolidate the financial performance of its subsidiary TRDL into its own financial statements even though it doesn\u2019t wholly own it.<\/p>\n

As a result of Centum\u2019s consolidation of TRDL\u2019s financials, the investment firm\u2019s overall financial performance declined.<\/p>\n

Due to declining sales and investment income, rising funding costs, and growing losses from joint venture investments, TRDL reported a loss of Shs179.43 b ($49.92 m), up from Shs57.69 b ($16.05 m).<\/p>\n

Massive impairment provisions totalling Shs19.95 b ($27.25m) added to TRDL\u2019s losses.<\/p>\n

However, Centum\u2019s real estate investments reported an increase in profit, rising from Shs3.22b ($894,647.88) to Shs50.86b ($14.15 m) during the period.<\/p>\n

\u201cOur focus remains on making the crucial decisions required to continue creating value and generating enhanced cash flow in the dynamic and demanding operating environment that we are in,\u201d said Dr Mworia.<\/p>\n

\u201cWe are cautiously optimistic and anticipate better results in the upcoming year,\u201d he added<\/p>\n

USE owns 0.86 percent of the investment company, which Centum purchased for Shs48.09 b ($13.38 m) in order to control 58 percent of the TRDL project.<\/p>\n

For More News And Analysis About Uganda<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Uganda. At least 6.3 percent of investors\u2019 wealth in Centum Plc, has been wiped out on the Ugandan bourse following a profit warning, in which impairment provisions reduced projected profits. Uganda Securities Exchange (USE) trading data for the week ending August 1, 2023, shows that investors lost at least Shs10.44b in the investment […]<\/p>\n","protected":false},"author":84,"featured_media":53683,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[233,240,234],"class_list":["post-53684","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-uganda","tag-uganda"],"yoast_head":"\nCentum investors lose Shs10b after profit warning - Uganda<\/title>\n<meta name=\"description\" content=\"At least 6.3 percent of investors\u2019 wealth in Centum Plc, has been wiped out on the Ugandan bourse following a profit war ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/uganda\/all-news\/centum-investors-lose-shs10b-after-profit-warning\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Centum investors lose Shs10b after profit warning\" \/>\n<meta property=\"og:description\" content=\"At least 6.3 percent of investors\u2019 wealth in Centum Plc, has been wiped out on the Ugandan bourse following a profit war ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/uganda\/all-news\/centum-investors-lose-shs10b-after-profit-warning\" \/>\n<meta property=\"og:site_name\" content=\"Uganda\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-04T09:43:18+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-04T10:50:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2023\/08\/sm_1691129883.720743.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"480\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/centum-investors-lose-shs10b-after-profit-warning#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/centum-investors-lose-shs10b-after-profit-warning\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Centum investors lose Shs10b after profit warning\",\"datePublished\":\"2023-08-04T09:43:18+00:00\",\"dateModified\":\"2023-08-04T10:50:11+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/centum-investors-lose-shs10b-after-profit-warning\"},\"wordCount\":561,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/centum-investors-lose-shs10b-after-profit-warning#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2023\/08\/sm_1691129883.720743.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Uganda\",\"uganda\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/uganda\/all-news\/centum-investors-lose-shs10b-after-profit-warning#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/centum-investors-lose-shs10b-after-profit-warning\",\"url\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/centum-investors-lose-shs10b-after-profit-warning\",\"name\":\"Centum investors lose Shs10b after profit warning - 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