Infrastructure company TransCentury has become the 13th kenyan company to issue a profit warning saying that the earnings for the financial year ended 31 December 2017 may be 25 percent lower than the net earnings of financial year ended 31 December 2016.
The announcement dated 2 March 2018 was made based on preliminary evaluation of unaudited accounts. The Group blames the profit decrease on the extended election period that made customers hesitant about spending on infrastructure projects. As a result, there was reduced performance in operating units.
Secondly, the Group is blaming the 25 percent decline on the rate capping law that has made access to credit much more difficult than it used to be.
However, the company’s board and the management say they remain optimistic about their performance in 2018 despite this setback.
Other NSE listed companies that have issued profit warnings for the full year period ended December 2017 include; Britam, HF Group, BOC Gases, Deacons, Standard Chartered, Standard Group, Bamburi Cement, Mumias Sugar, Nairobi Business Ventures, Unga Group, Flame Tree Group and Family Bank which isn’t listed.