East African Cables Plc (Under Administration) has reported a net loss of KSh 190 million for the half year ended June 2025, down from KSh 275 million for the same period in 2024.
- •Turnover dropped 7.7% to KSh 1.23 billion from KSh1.33 billion in H1 2024, but gross profit rose 2.3% to KSh 379 million after cost of sales fell 11.5% to KSh853 million.
- •Operating profit jumped 55% to KSh 84 million as expenses eased while finance costs rose 15% to KSh 261 million, keeping the group in loss-making territory.
- •East African Cables is under administration after Equity Bank appointed an Administrator in June to recover a KSh 2.2 billion debt.
The company’s total assets stood at KSh5.04 billion, up 1.3% year-on-year, while reserves shrank 56% to KSh 124 million. Cash generated from operations rose to KSh338 million from KSh 256 million, offsetting financing outflows of KSh 304 million. Closing cash improved slightly to KSh 77 million while equity turned negative at KSh 85 million compared to a positive KSh 211 million in June 2024, underscoring balance sheet stress.
| Metric | Jun 2025 | Jun 2024 | YoY % |
|---|---|---|---|
| Turnover | 1.23 Bn | 1.33 Bn | -7.7% 🔴 |
| Gross Profit | 378.97 Mn | 370.42 Mn | +2.3% 🟢 |
| Profit from Operations | 83.61 Mn | 54.11 Mn | +54.6% 🟢 |
| Net Loss | -190.15 Mn | -275.09 Mn | +30.9% 🟢 |
| EPS | -0.53 | -0.82 | +35% 🟢 |
| Total Assets | 5.04 Bn | 4.97 Bn | +1.3% 🟢 |
| Current Assets | 856.65 Mn | 689.28 Mn | +24.3% 🟢 |
| Current Liabilities | 3.51 Bn | 3.29 Bn | +6.8% 🔴 |
| Reserves | 123.74 Mn | 279.45 Mn | -55.7% 🔴 |
| Equity | -85.10 Mn | 211.46 Mn | Negative 🔴 |
| Cash from Operations | 338.35 Mn | 255.88 Mn | +32.2% 🟢 |
| Net Cash Change | 33.87 Mn | -31.05 Mn | Improved 🟢 |
| Closing Cash | 76.59 Mn | 74.21 Mn | +3.2% 🟢 |
Administration and Legal Battles
The narrower loss reflects cost savings and stronger operating performance, though debt and legal disputes remain critical risks. The Court of Appeal has cleared Equity Bank to sell four company properties, rejecting EAC’s attempt to block the process. Administrators have invited investors for recapitalization, refinancing, or acquisition bids.
TransCentury, East African Cables’ parent company, accuses Equity Bank of frustrating restructuring efforts, including a proposed US$15 million facility from Norfund and discussions with TLG Capital. The Tanzanian subsidiary also remains a drag, with delayed divestment plans.
East African Cables (Ticker:CABL) and parent company TransCentury (Ticker:TCL) shares trading at the Nairobi Securities Exchange have been suspended indefinitely since June 24th 2025.
The company’s future depends on whether administrators can secure new capital or a buyer. While cash generation improved, rising liabilities and negative equity highlight solvency pressure. No dividend was declared.
