Listed infrastructure investment firm, TransCentury, his back to profitability after a 12-year hiatus, underscoring a successful business turnaround started in 2022.
On Wednesday, the firm announced a Sh580 million profit for the financial year ended December 31, 2024, from a loss of Sh3.2 billion the previous year, attributed to sustained revenue growth momentum, profit and balance sheet improvement, more specifically on sound currency and credit management.
The firm last posted a net profit of Sh857 million in 2013.
The revenue grew by two per cent, driven by strong brand positioning, demand in core markets, strategic market focus, capital allocation prioritisation to demand fulfilment, as well as innovation.
The Group’s gross profits rose by 27 per cent to Sh2.3 billion from Sh1.9 billion due to improved gross margins as a result of focus on high-margin products and efficient procurement and project management.
In a year to December 2024, the infrastructure investor saw its operating expenses decline marginally from Sh1.67 billion to Sh1.62 billion. As a result, operating profit improved to Sh715 million from a loss of Sh371 million.
During the year, the firm’s forex gains amounted to Sh1.23 billion from a loss of Sh1.49 billion.
The firm has achieved profitability just three years after adopting Ahidi +32 per cent strategy in 2022 which focuses on its core – Investments to drive sustainable, organic growth, innovation and diversification guided by internal and external data and emerging trends, investing and developing strong brands that will deliver superior value to shareholders and entrenching a culture of execution and accountability.
Commenting on the results, TransCentury PLC Group chairman, Shaka Kariuki, said they are excited to see operational results bolstering our restructuring efforts to materially reverse our balance sheet in the next reporting period. He added that strong performance in P&L supports the Group’s efforts in ongoing balance sheet improvement efforts.
“FY2024 marks a defining chapter in TransCentury’s turnaround journey. As the Board, we are proud of the decisive actions taken to restore stakeholder confidence and reposition the Group for return to profitability. Our stakeholders have been supportive and patient, and for those having concerns, we assure them that normalising relations continues to be a key focus for us.”Shaka Kariuki, Group chairman, TransCentury PLC.
According to him, the performance underscores the successful execution of the firm’s turnaround strategy, hailing the team for delivering a 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 a testament to the resilience of our people, the strength of our strategy, and our unwavering commitment to sustainable value creation,’ Nganga Njiinu, Group CEO, TransCentury PLC, said. “Our next steps are focused are capitalising on the significant growth opportunities we have created, capital structure optimisation, and continuing balance sheet improvement.”
In March last year, Kuramo acquired additional shares in the Kenyan-based firm after pumping in Sh1.1 billion in the rights issue. The Mauritius-based private equity firm already owned 25 per cent stake in a 2016 deal that gave it access to 93.7 million shares.
The deal gave the equity firm an additional 48 per cent stake or 468.8 million additional shares at the set price of Sh1.1 a piece, pushing shareholding to 74 per cent.
