[2008-06-27]  Centum now eyes Ugandan market
Businesses are rethinking their investment strategies following the violence that erupted in the country after last year's disputed elections. Some are seeking regional expansion as a way of reducing risk.
Centum Investment, a Nairobi Stock Exchange listed company, becomes the first to announce such a move saying it will be extending its investment into the Ugandan market.
“We want to establish a regional footprint by aggressively seeking both private and listed equity opportunities in East Africa. This will enable the company to benefit from the attractive opportunities and also diversify its portfolio from risk,” Centum Managing Director, Mr. Peter Mwangi, said.
The post election violence paralysed economic activities and affected several businesses.
The company’s investment has shrunk by almost KSH300 million from KSH8.4billion recorded in June 30, 2007 to KSH8.1billion as at March 31, 2008 according to its balance sheet.
The company formerly, ICDC Investment, released its nine months financial results as it marked the final phase of re-branding which saw it change its name and financial reporting period.
Centum reported a pretax profit of KSH985million for the nine months to March 31, 2008 and proposed a dividend of 45 cents.
“We consider this performance robust,” Mr Mwangi said. The financial reporting period will now end on March 31 from June 30, as the company aligns its reporting period to that of its subsidiaries and associate companies and also in line with the governing accounting standards.
The dividend will be paid out in October subject to shareholders’ approval during the annual general meeting.
During the nine months period, Centum acquired a 35 percent stake in publishing firm, Longhorn Kenya Limited, and sold its stake in Mather and Platt Limited.
On its investment in the loss making Kenya Railway through Rift Valley Railways Investment - the company that won a concession to manage the Kenya and Uganda railway for a 25 year-period in 2007 - Mr Mwangi said he is still positive that the railway will make a turnaround over the next two years.


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