Centum Investment Group reduced its loss for the six months to September from $17.67 million to $5.91 million.
The firm, which is listed on the Nairobi Securities Exchange (NSE), reduced its finance costs by 28 percent from $4.05 million to $2.91 million, while investment and other income more than doubled to $6.88 million from $2.93 million during the period under review.
Currently, Centum is indebted to the tune of $35.71 million from a high of $142.85 million in 2019.
The firm is focused on making investments across six sectors in the East African market, among them financial services, fast moving consumer goods, energy, agribusiness, education and healthcare with a bias towards buyout and growth transactions.
According to the group’s unaudited financial statements, the bulk of the losses in the consolidated statement of comprehensive income was driven by the Two Rivers Development Company (TRDC) Ltd in which Centum holds a 58 percent stake.
TRDC recorded a loss of $3.02 million during the six months to September 30 r from a loss of $8.81 million the same period last year.
“The boards of TRDC and Two Rivers Lifestyle Centre have respectively initiated steps to restructure the balance sheets to reduce the interest paying debt and significant progress towards this objective has been made,” James Mworia, the Group’s chief executive said last week.
TRDC has a total debt of $80.35 million, comprising $44.64 million and $35.71 million long-term and short-term debts, respectively.
Centum is now seeking to sell part of its shareholding in TRDC to retire a $35.71 million short-term debt whose repayment is taking a toll on its finances.
“We have seen improved performance in the first half from the various business segments as they recover and the economy rebounds from the impact of Covid-19 pandemic,” said Mworia.
“We have optimistic about the second half of the year as we continue to execute on the recovery plans across the various businesses.”
Centum invested $16.96 million in TRDC for a 58 percent controlling stake, with the remaining shares split between the Aviation Industry Corporation of China (Avic) and ICDC at 39 percent and three percent, respectively.
The restructuring of the TRDC balance sheet involves adding equity and taking out the debt.
TRDC and Old Mutual Property (OMP) Africa Investment Company each own 50 percent shareholding in the Two Rivers Lifestyle Company Ltd the developer of the $142.85 million Two Rivers Mall in Nairobi.