TransCentury Limited (TCL) has announced its financial results for the year ended 31 December 2016. The Group recorded a 31% drop in revenue, however, it substantially reduced its loss after tax by 64% to KShs 864 million from a loss of KShs 2,423 million in 2015.
The company said the results were “significantly affected by a temporary limitation in accessing credit lines from our financiers for the greater part of 2016 due to the perceived uncertainty in the resolution of the Eurobond which matured in March 2016. The Eurobond issue was however resolved during the year.”
The Engineering Division had a 47% drop in revenues year on year. The Division however made remarkable progress in the latter part of the year in turning the tide with closure of an impressive contracted order book that currently stands in excess of KShs 12 billion and whose execution is in progress.
Similarly, in the Power Division, conversion of order book was challenged, but despite this, the Division closed the year with orders from regional utilities in excess of KShs 4 billion, which excludes further uncontracted business from private sector. This unprecedented increase in order book from regional utilities resulted from our increased production capacity to support governments’ heightened electrification efforts, enforcement of local content laws and the Group’s engagement with stakeholders.
On 14 March 2016, the Group reached an agreement with Kuramo Capital Management, an African focused investment manager, to inject KShs 2 billion of fresh equity into the business. Under the agreement, Kuramo acquired a 24.99% shareholding in TCL by allotment of 93,776,173 new ordinary shares of the Company and preference shares in TC Mauritius. This also led to appointment of three (3) new Non-Executive Directors; Shaka Kariuki, Wale F. Adeosun and Kamal Pallan.
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