Blow to Investors as Centum Issues Profit Warning!!
Nairobi Securities Exchange listed investment firm Centum has issued a profit warning for the full year ended March 31, 2018 citing decrease in revaluation gains and delay in recognizing realized gains on disposal of investments for transactions signed during the year but not yet concluded.
The company says it expects earnings for the period to be lower by at-least 25% compared to the previous year when they reported a net profit of sh 8.3 billion, still a decline of 16% compared to the previous year.
“The combined effect of the lower property valuation gains and the deferral of recognition of realized on investment disposal to the current year will be a decline in the group’s consolidated net profit by atleast 25%. Adjusted for the effect of the two items, profitability would have remained largely at the same level as last year.” Centum noted through a notice filled at the Exchange.
However, the company noted that they don’t expect the warning to have an impact on the anticipated dividend declaration for the financial year ended March 31, 2018.
As at noon, the share price was down by more than 9% following the profit warning announcement.