Business News
Gloomy Transcentury Financial Results Push It Towards a Rights Issue Route
[ad_1]
Transcentury financial results: Listed investment company, Transcentury Group, plans to raise more capital through a rights issue. The rights issue will be discussed and ratified by shareholders at a meeting scheduled for 10th June 2021. “This has come from the interest expressed by the shareholders to participate in a fundraising transaction,” the company said in a statement.
The proposed rights issue will be on the basis of five (5) new shares for every one (1) ordinary share held. Details of the Rights Issue will follow after shareholder and regulatory approvals. These details were revealed as Transcentury announced its financial results for the year ended 31st December 2019, in which it reported a 34% revenue growth, driven by impressive performance in two of its subsidiaries, but remained deeply in the red.
The company last year announced plans to delist from the Nairobi Securities Exchange (NSE), citing reduced liquidity in the market.
The two subsidiary businesses Tanelec Limited and AEA Limited reported 56.8% and 89.7% revenue growth respectively. Tanelec Limited, headquartered in Arusha, Tanzania, is the leading manufacturer and distributor of transformers in the region while AEA Limited, headquartered in Nairobi, provides solutions that enhance infrastructure efficiency and sustainability across the region.
Meanwhile, Transcentury reduced loss before tax by 12.9% to Ksh3.1 billion from Ksh3.6 billion with the loss after tax declining by 12.4%, from Ksh3.9 billion in 2018 to Ksh3.5 billion in the year under review.
Group CEO Ng’ang’a Njiinu said the aggressive topline growth despite scaling down in some of the businesses showed the capital re-allocation strategy and focus on key levers in the turnaround plan was bearing fruit.
The performance in both subsidiaries was underpinned by a robust order-book, successful debt re-profiling freeing up operating cashflows and innovative working capital financing.
The Group’s performance in the first half of 2020 was impacted by the effects of COVID-19 pandemic which disrupted demand and supply chains globally, resulting in a 21% decline in revenue as compared to the same period in 2019. On the other hand, the Group continued to deliver on its commitment to enhance efficiencies by recording a 20% savings in operating expenses in line with our strategic plan.
See >> BUY OR SELL? What Analysts Think About KCB, Equity, CIC and KenGen Shares
“In the second half of 2020, our businesses however demonstrated resilience and responded with innovation as well as adopting to the changes in the market delivery pointing to very strong results,” Mr Njiinu added. “We saw a strong rebound in the second half of the year that will substantially reverse the impact of the pandemic on the first half of the year.”
For the last 4 years, TC has focused on a four (4) pronged turnaround plan that has aimed at delivering commercial opportunities, debt reprofiling to match cashflows, fundraising to unlock growth and accelerating execution of emerging opportunities.
The Group closed 2020 with a confirmed order book of Ksh14billion and, hence, the focus to raise funds and execute on orderbook. “Our focus now is on the fundraising pillar as we are comfortable that we have sufficiently prepared the business to receive funding,” added Mr. Njiinu.
Read >> Beauty Firm Flights With NSE In Quest To Raise Capital
[ad_2]
Source link
Comments
Rayvanny officially leaves Diamond’s WCB Wasafi after 6 years
Raila Odinga is the most popular presidential candidate, a survey released by Infotrak
Newly-crowned Kenyan Wimbledon champion Angella Okutoyi would like to play against American star Serena Williams
The Mombasa High Court has ordered IEBC to clear Sonko to run for the Mombasa governorship.
A new born baby was pulled out of latrine in Mururi.
Kenyan Rapper Colonel Mustafa has leveled fresh accusations against his ex-girlfriend Katoto.
Okutoyi and Nijkamp qualify for Wimbledon Open final
Fans will have to brace themselves for a sober 90 minutes, the Gulf Arab state announces.
Angola’s longest ruler dos Santos dies at 79
