- On Wednesday, the investment holding company headquartered in Kenya reported a full year profit after tax of $4.5M (KES580M) for the period ended December 2024.
- This is from a loss of $24.7M (KES3.2Bn) in 2023, underscoring a successful turnaround of the business.
- This outstanding performance is attributed to sustained revenue growth momentum, margin expansion, cost containment, balance sheet clean-up and prudent foreign currency exposure management.
Nairobi-based regional infrastructure investment company TransCentury has bounced back to profitability following a major turnaround strategy. The Nairobi Securities Exchange (NSE) listed firm first returned to profitability in the first half of 2024, recording a net profit of $2.9 million (KES375 million), a significant turnaround from a loss of $12.8 million (KES1.66 billion) in the same period a year earlier.
On Wednesday, the investment holding company headquartered in Kenya reported a full year profit after tax of $4.5 million (KES580 million) for the period ended December 2024. This is from a loss of $24.7 million (Ksh3.2 billion) in 2023, underscoring a successful turnaround of the business.
The company, which has over the years cemented its presence in East, Central and Southern Africa, has been playing a major role in developing infrastructure projects specifically in the energy, transport, water, industrial and agriculture sectors.
This outstanding performance is attributed to sustained revenue growth momentum, margin expansion, cost containment, balance sheet clean-up and prudent foreign currency exposure management.
Commenting on the results, TransCentury PLC Group Chairman, Shaka Kariuki noted that the financial year 2024 marks a defining chapter in the company’s turnaround journey.
“As the board, we are proud of the decisive actions taken to return the Group to profitability and restore stakeholder confidence. Our stakeholders have been supportive and patient in our turn around journey and we assure them that we are actively working to resolve outstanding debt issues with our main lender amicably positioning the business for sustainable growth” said Mr. Kariuki.
TransCentury Limited has been instrumental in developing projects which have supported economic growth in Kenya, Tanzania, Uganda, Rwanda, South Africa, the Democratic Republic of Congo and Zambia.
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TransCentury regional footprint in infrastructure investments
Additionally, it has distributed products to other sub-Saharan African countries like Mozambique. TransCentury’s revenue growth continues to be driven by strong brand positioning, steady demand across its core business segments, capital allocation prioritisation to demand fulfillment as well as market deepening initiatives, management said.
According to Group CEO Ng’ang’a Njiinu, the 2024 full-year performance underscores the successful execution of the group’s turnaround strategy.
“Our teams have delivered this remarkable turnaround in an incredibly challenging environment and significant headwinds in the past few years. The return to profitability is not just a financial milestone but also testament to the resilience of our people and business, the robustness of our strategy, and our unwavering commitment to sustainable value creation,” Njiinu explained.
“Our next steps are focused on capitalising on the significant growth opportunities we have created to scale up, capital structure optimisation and continued balance sheet improvement,” he added.
The group’s gross profit increased by 27 per cent as a result of gross margins improvement driven by focus on high margin products, improved procurement and efficient project management.
Furthermore, the successful implementation of the company’s initiatives around disciplined execution, currency management and credit management were instrumental in achieving net profitability.
TransCentury’s strong income statement performance in 2024 significantly complimented its initiatives in the ongoing balance sheet improvement efforts. The firm expects the conclusion of these efforts to materially improve our balance sheet in the next reporting periods.
The firm, whose subsidiaries include NSE-listed firm, East African Cables, invests where there is an opportunity to add significant value through driving strategy, operational improvement, efficient capital allocation and creation of synergies within the group.
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Management has been keen on driving sustainable, organic growth, innovation and diversification guided by internal and external data and emerging trends, investing and developing strong brands that deliver superior value to shareholders and entrenching a culture of execution and accountability.
TransCentury Plc’s major shareholder, Kuramo, has expressed interest in writing off part of its $10.5 million (Sh1.35 billion) loan to the regional infrastructure investment company as part of a strategy to jumpstart the struggling company.
Early this year, TransCentury Plc’s major shareholder, Kuramo, expressed interest in writing off part of its $10.5 million loan, as of March, to the regional infrastructure investment company as part of a strategy to jumpstart the firm.
Key projects and investments
TransCentury, through its subsidiaries has been behind major energy projects in the Sub-Saharan Africa region among them the construction of power plants totalling over 520MW. Its subsidiary East African Cables also produces electricity power lines and transmission equipment.
In transport, it is behind construction of roads in South Sudan, DRC and Kenya. They have also been involved in transport projects.
The firm has also developed industrial and manufacturing plants in Kenya and regional countries like Uganda and the DRC and storage terminals in Sub-Sahara Africa, totalling over 236,000 cubic meters.
It is behind the Security Screening Station at Jomo Kenyatta International Airport in Kenya, which was built by its then subsidiary Civicon. TransCentury has also been involved in engineering services for gold mines in the Democratic Republic of Congo among other projects. Other subsidiaries include Kewberg Cables & Braids (cable manufacturing), Tanelec Limited (power services, and Cableries Du Congo (cable manufacturing).
TransCentury’s approach has been to identify infrastructure needs in the region and then invest in projects that address those needs, creating scalable businesses and promoting sustainable development. They are also known for their ability to leverage their position as an investment holding company to create synergies among their portfolio businesses.
