Centum Investment Company has announced a staggering 68.8% decline in net profit for the fiscal year ending March 2025, attributing the downturn to reduced fair value gains on its investment properties and an increased deferred tax charge.
The company reported a net profit of $12 million, down from $38.5 million in the previous fiscal year. This significant drop has raised concerns among investors and analysts regarding the company’s future performance and strategic direction.
Key Factors Contributing to the Decline
Lower Fair Value Gains: The company experienced a notable decrease in fair value gains from its investment properties, which have been adversely affected by market fluctuations and changing economic conditions. The real estate sector has faced challenges, leading to diminished returns on property investments.
Increased Deferred Tax Charge: A higher deferred tax charge has further impacted the company’s profitability. This increase reflects adjustments in tax liabilities that have arisen from changes in tax regulations and the company’s financial strategies.
Following the announcement, shares of Centum Investment Company fell by 15% in early trading, signaling investor concern over the company’s ability to recover from this financial setback.
Analysts are closely monitoring the situation, with many urging the company to reassess its investment strategies and focus on stabilizing its core operations.
In light of the current financial challenges, Centum Investment Company is expected to implement a series of strategic initiatives aimed at improving profitability and enhancing shareholder value.
The management has indicated plans to diversify its investment portfolio and explore new opportunities in emerging markets.
Written By Ian Maleve
