NAIROBI, KENYA, AUGUST 29 ― Infrastructure development company- TransCentury (Plc) has posted a Ksh684.8 million loss after tax for the year to June, narrowing its losses by about 34.2 per cent.
The Nairobi Securities Exchange (NSE) listed firm had a Ksh1.04 billion loss in a similar period last year.
The management has pegged the loss cut on gains from operational improvements and disciplined capital allocation, resulting in gross profit margin improvement from 14 per cent in 2017 to 27 per cent in the period under review.
This is despite a 23.7 per cent drop in its turnover which closed the half-year at Ksh2.28 billion from Ksh2.99 billion last year.
The firm’s financial results for the period ended June 30, show operating expenses reduced 19.6 per cent to Ksh695.8million from ksh865 million the previous year.
Among measures resulting to reduced costs was staff restructuring which saw at least 275 employees relieved off their duties, leaving the company’s staff number at 1,274 as at December last year.
“Focused cost optimization resulted in 20 per cent reduction in operating costs, saving Ksh169 million,” the firm reported in its half-year financial statement.
It also had a positive cash generation from operations of Ksh217 million resulting from improved performance and focused working capital management.
“Completion of Company debt re-profiling in Q2 (quarter two) resulted in reduction of finance cost by Ksh48 million at company level, and overall drop of 12 per cent at Group level,” the management said.
The management remains optimistic of a turnaround with a return to profitability going forward.
“The improved performance in the first half of the year has been achieved against the backdrop of a tough liquidity environment. As we continue to implement our turnaround plan that includes the re-profiling of operating units’ debt, and securing working capital funding, the Group is well set to realize the benefits of the pent up value in the order book,” the management said.“The Board and Management are committed to the turnaround plan that will lead to profitability and value creation,” it added.TransCentury is an Infrastructure company listed on the NSE (Ticker – TCL:KN) with three operating divisions across 14 countries in East, Central and Southern Africa.The firm earlier this year attributed its financial woes to the interest capping law and the political uncertainty witnessed in Kenya last year, which affected its interest earnings as infrastructure projects stalled.
