TransCentury Company secretary Virginia Ndunge. FILE PHOTO | NMG
TransCentury slipped back to a Sh1.04 billion loss in the six months ended June as the company’s revenue dropped by a similar amount.
The
Nairobi Securities Exchange-listed infrastructure firm had returned to
profitability in the same period last year on the back of a Sh4 billion
write back on its Sh8 billion debt.
This helped it
swing to a Sh1.31 billion half-year profit for the first time since
2013, also boosted by foreign exchange gains, which had more than halved
its interest expenses.
Revenue from operations in the
first six months of the year, however, fell 27.68 per cent to Sh2.99
billion from Sh4.14 billion a year ago.
Income from other investment streams also dropped steeply to Sh18.02 million from Sh2 billion in June 2016.
“The
Group’s performance in H1 (first half) of the year was affected by the
lingering effects of constrained access to credit lines in 2016, which
slowed our project acquisition for most of 2016 that would have come
into execution in H1,” the company said in a statement. The company
incurred Sh368.33 million in interest expenses, an 82.24 per cent jump
over the Sh202.11 million it paid the previous year.
The
firm has projected better performance in the second half of the year,
citing an order book of more than Sh4 billion in its power unit and a
“strong pipeline of projects” in engineering arm.
“Demand
from our markets remains strong and we are keenly focused on growing
our order books well as ongoing work on restructuring to further adjust
our cost structure,” TransCentury said in the statement signed by
company secretary Virginia Ndunge.
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