Listed infrastructure investment company TransCentury returned to profitability in the 6 months to June 2024 to record a KSh 375.1 million net profit from a loss after tax of KSh 1.7 billion in 2023, the first half year profit since 2019.
- The announcement saw the share price gain 30.6% in a single day to KSh 0.72 from KSh 0.55 on Monday with a year-to-date gain of 84.6% – still below KSh 1.00
- The profits were driven by the stronger Kenyan shilling which helped reverse foreign exchange losses realised over the years to KSh 881.7 million in forex gains with the company further benefiting from the KSh 89.3 million tax credit.
- Revenue increased by 12% to KSh 3 billion which the company attributes to healthy pipeline generation coupled with improved business and market efficiencies.
Operating profit increased 1062.1% to KSh 172.4 million buoyed by gains from non-core asset disposals. However, the boost was watered down by a faster surge in operating expenses to KSh 823.8 million from KSh 766.4 million. Finance costs saw a 12.5% uptick to KSh 768.3 million from KSh 683.3 million.
“Other income rose, bolstered by gains from non-core asset disposals,”Transcentury noted in the earnings release. “The appreciation of the Kenya Shilling against the US Dollar supported the Group’s efforts in reversing foreign exchange losses incurred in prior years,” the company added.
The company is still in a negative equity position with current liabilities surpassing its current assets by KSh 14.9 million after years of losses. In 2023, TransCentury and its subsidiary East African Cables were placed under receivership for a KSh 5 billion default facility from Equity Bank. The High Court granted the two listed firms temporary 120 days relief from receivership in December 2024.
The troubled firm has continued to defy the Capital Markets Authority regulations of releasing financial reports not more than 4 months after their year end. TransCentury released the full year 2023 results and the half year 2024 results on the same date – overdue for almost a year.
