On Wednesday, the funding holding firm headquartered in Kenya reported a full 12 months revenue after tax of $4.5M (KES580M) for the interval ended December 2024.
That is from a lack of $24.7M (KES3.2Bn) in 2023, underscoring a profitable turnaround of the enterprise.
This excellent efficiency is attributed to sustained income progress momentum, margin enlargement, value containment, stability sheet clean-up and prudent overseas forex publicity administration.
Nairobi-based regional infrastructure funding firm TransCentury has bounced again to profitability following a serious turnaround technique. The Nairobi Securities Trade (NSE) listed agency first returned to profitability within the first half of 2024, recording a internet revenue of $2.9 million (KES375 million), a major turnaround from a lack of $12.8 million (KES1.66 billion) in the identical interval a 12 months earlier.
On Wednesday, the funding holding firm headquartered in Kenya reported a full 12 months revenue after tax of $4.5 million (KES580 million) for the interval ended December 2024. That is from a lack of $24.7 million (Ksh3.2 billion) in 2023, underscoring a profitable turnaround of the enterprise.
The corporate, which has over time cemented its presence in East, Central and Southern Africa, has been taking part in a serious position in growing infrastructure tasks particularly within the power, transport, water, industrial and agriculture sectors.
This excellent efficiency is attributed to sustained income progress momentum, margin enlargement, value containment, stability sheet clean-up and prudent overseas forex publicity administration.
Commenting on the outcomes, TransCentury PLC Group Chairman, Shaka Kariuki famous that the monetary 12 months 2024 marks a defining chapter within the firm’s turnaround journey.
“Because the board, we’re pleased with the decisive actions taken to return the Group to profitability and restore stakeholder confidence. Our stakeholders have been supportive and affected person in our flip round journey and we guarantee them that we’re actively working to resolve excellent debt points with our predominant lender amicably positioning the enterprise for sustainable progress” stated Mr. Kariuki.
TransCentury Restricted has been instrumental in growing tasks which have supported financial progress in Kenya, Tanzania, Uganda, Rwanda, South Africa, the Democratic Republic of Congo and Zambia.
Learn additionally: TransCentury will get nod to reopen $20Mn rights problem
TransCentury regional footprint in infrastructure investments
Moreover, it has distributed merchandise to different sub-Saharan African nations like Mozambique. TransCentury’s income progress continues to be pushed by sturdy model positioning, regular demand throughout its core enterprise segments, capital allocation prioritisation to demand achievement in addition to market deepening initiatives, administration stated.
In accordance with Group CEO Ng’ang’a Njiinu, the 2024 full-year efficiency underscores the profitable execution of the group’s turnaround technique.
“Our groups have delivered this outstanding turnaround in an extremely difficult setting and vital headwinds prior to now few years. The return to profitability isn’t just a monetary milestone but additionally testomony to the resilience of our folks and enterprise, the robustness of our technique, and our unwavering dedication to sustainable worth creation,” Njiinu defined.
“Our subsequent steps are targeted on capitalising on the numerous progress alternatives we’ve created to scale up, capital construction optimisation and continued stability sheet enchancment,” he added.
The group’s gross revenue elevated by 27 per cent because of gross margins enchancment pushed by concentrate on excessive margin merchandise, improved procurement and environment friendly venture administration.
Moreover, the profitable implementation of the corporate’s initiatives round disciplined execution, forex administration and credit score administration had been instrumental in attaining internet profitability.
TransCentury’s sturdy earnings assertion efficiency in 2024 considerably complimented its initiatives within the ongoing stability sheet enchancment efforts. The agency expects the conclusion of those efforts to materially enhance our stability sheet within the subsequent reporting durations.
The agency, whose subsidiaries embody NSE-listed agency, East African Cables, invests the place there is a chance so as to add vital worth via driving technique, operational enchancment, environment friendly capital allocation and creation of synergies inside the group.
Learn additionally: Msufini Tanzania to purchase East African Cables’ Tanzania subsidiary
Administration has been eager on driving sustainable, natural progress, innovation and diversification guided by inner and exterior information and rising traits, investing and growing sturdy manufacturers that ship superior worth to shareholders and entrenching a tradition of execution and accountability.
TransCentury Plc’s main shareholder, Kuramo, has expressed curiosity in writing off a part of its $10.5 million (Sh1.35 billion) mortgage to the regional infrastructure funding firm as a part of a technique to jumpstart the struggling firm.
Early this 12 months, TransCentury Plc’s main shareholder, Kuramo, expressed curiosity in writing off a part of its $10.5 million mortgage, as of March, to the regional infrastructure funding firm as a part of a technique to jumpstart the agency.
Key tasks and investments
TransCentury, via its subsidiaries has been behind main power tasks within the Sub-Saharan Africa area amongst them the development of energy crops totalling over 520MW. Its subsidiary East African Cables additionally produces electrical energy energy strains and transmission tools.
In transport, it’s behind development of roads in South Sudan, DRC and Kenya. They’ve additionally been concerned in transport tasks.
The agency has additionally developed industrial and manufacturing crops in Kenya and regional nations like Uganda and the DRC and storage terminals in Sub-Sahara Africa, totalling over 236,000 cubic meters.
It’s behind the Safety Screening Station at Jomo Kenyatta Worldwide Airport in Kenya, which was constructed by its then subsidiary Civicon. TransCentury has additionally been concerned in engineering providers for gold mines within the Democratic Republic of Congo amongst different tasks. Different subsidiaries embody Kewberg Cables & Braids (cable manufacturing), Tanelec Restricted (energy providers, and Cableries Du Congo (cable manufacturing).
TransCentury’s strategy has been to determine infrastructure wants within the area after which spend money on tasks that tackle these wants, creating scalable companies and selling sustainable improvement. They’re additionally identified for his or her capability to leverage their place as an funding holding firm to create synergies amongst their portfolio companies.
