TransCentury share hits all-time low after 9.1pc drop

Money Markets

TransCentury chief executive Gachao Kiuna. PHOTO | FILE 

By GEOFFREY IRUNGU

In Summary

• At the listing stage in 2011, the company was priced at Sh50 but has since been on a downward trend.

Investment firm TransCentury lost 9.1 per cent of its market value to hit an all-time low yesterday.

The share traded at a low of Sh14 slightly over a week after it reported a loss of Sh2.3 billion for the year to December 31, 2014. The loss resulted from the sale of a 34 per cent stake in Rift Valley Railways for Sh3.8 billion. The stake went to a group of investors led by Egypt-based Qalaa Holdings.

At the listing stage in 2011, the company was priced at Sh50 but has since been on a downward trend.

READ: TransCentury announces first ever loss as RVR sale hits earnings

ALSO READ: TransCentury stock down 67pc since 2011 listing

The company’s revenue last year fell to Sh10.2 billion, a 13.6 per cent change from the previous year. It reported its revenue in the engineering division dropped by 36 per cent as some projects had been delayed. Besides engineering, the company has interests in power generation and infrastructure.

In 2013, the company made a profit of Sh626 million, that was a decline from the previous year’s profit of Sh741 million — indicating it has been experiencing declining fortunes over the past two years.

On Monday, the Business Daily reported that businessman Jimnah Mbaru had traded 9.4 million shares equivalent to a 3.3 per cent stake he held, thereby quitting the list of the top investors in the company. However, it was unclear whether Mr Mbaru had actually sold the shares or transferred the shares to another entity or person.

READ: Mbaru drops off list of top TransCentury owners

Mr Mbaru joined Ndung’u Gathinji, who is no longer listed as one of the top shareholders of TransCentury.

Exits from the company have seen the combined ownership of the top 10 founders fall to 47.5 per cent from 57.3 per cent in 2011.

TransCentury chief executive Gachao Kiuna has recently said the company is eyeing multibillion-shilling deals through its subsidiary Civicon.

But analysts have pointed out that such deals are not guaranteed because oil and gas exploration firms, that are the major clients for its engineering subsidiary, are cutting back on their budgets due to falling prices.

TransCentury led the group of losers in price on the Nairobi Securities Exchange yesterday. Others were Unga Limited, BOC Gases and Equity Bank whose prices fell by 4.92, 3.7 and 3.03 per cent, respectively.

Gainers included CfC Insurance, ScanGroup and Mumias Sugar whose prices increased by 9.52, 6.82 and 4.88 per cent respectively.
In terms of the major movers of the day, CfC Insurance led with 33.2 million shares traded, followed by Safaricom that had 6.8 million shares transacted.