- CEO says end of the zero-dividend policy is informed by strong growth momentum of firm’s subsidiaries.
Centum Investment has a ended a dividend drought for its shareholders that lasted nearly a decade, with a planned payout of Sh1 per share after announcing a double-digit growth in after-tax profit to Sh9.9 billion.
The dividend represents a Sh665 million total payout by the firm listed on the Nairobi Securities Exchange.
Centum Group Chief Executive Officer James Mworia yesterday said the end of the zero-dividend policy is informed by the strong growth momentum of the company’s subsidiaries which has also boosted its cash balance.
“The company had a strong performance during the year and closed in a good liquidity position. We have chosen to recommend the dividend payout as delivering value to our shareholders is our primary focus and the company has sufficient liquidity to fund its deal pipeline,” said Mr Mworia.
Centum has had a no-dividends policy since 2009.
The dividend drought was meant to provide the company funds to make acquisitions.
The investments over the years have seen its asset classes multiply, while its stock value has multiplied nearly seven times. It last paid its shareholders in March, 2008 – a dividend of 45 cents per share.
Mr Mworia said the board is confident that it has sufficient funding for its planned projects and for distribution to shareholders.